Paying for what you use

Perelandra

Magentasue wrote: »

Couldn't you just do 250/3 = 84 kwh at tier 1 price every month? You could work out more accurately but that would do I think.

The worst that could happen is that you don't use all tier 1 units and save up too much.

Absolutely yes- but I don't think that companies that have the tiering system will be producing monthly bills, because of the complication in accurately calculating that monthly bill's value exactly. The OP asked if companies would bill each month based on actual reads, and I think only flat-rate tariffs will let you do that.

stewie_griffin

Perelandra wrote: »

The consumption is normally for the first "x" units per quarter though, isn't it? If there are tariffs that have a monthly Tier 1/Tier 2 split, then I'd agree completely with you.

If it's a quarterly split though:

If your first 250 units per quarter are charged at the Tier 1 rate, but your actual usage is 120 units in Month 1, 80 in month 2 and 90 in month 3, at the time that a Month 1 bill is produced I'm not sure how Month 1's bill could be calculated separately from Month 2 and 3? (Would all of Month 1 be at the Tier 1 rate?).

Do most companies not work out Tier 1 usage on a pro rata basis? Therefore the length of the billing period is irrelevant. For example Tier 1 would be calculated as follows: x/365 * y where x = annual tier 1 threshhold and y = period of days the bill covers.

KimYeovil

Perelandra wrote: »

Absolutely yes- but I don't think that companies that have the tiering system will be producing monthly bills, because of the complication in accurately calculating that monthly bill's value exactly. The OP asked if companies would bill each month based on actual reads, and I think only flat-rate tariffs will let you do that.

This is all irrelevant. You don't need the supplier to provide you with a bill. Pretty much all two tier tariffs are worked out on a pro rata per day basis. It is no more complicated to calculate the bill for four days, three weeks or one quarter. Just because they are billed quarterly or six-monthly is irrelevant. The tenants can work out their bill weekly or monthly with trivial ease. All that needs to be done is take a reading each month and work out the cost. And when a tenant leaves/arrives, take a reading then and work out a daily charge for the odd days.