Eon Standing Charge versus no standing Charge

jenny2009

I have been playing about with a spreadsheet trying to work out what the difference in cost is as regards standing charge and no standing charge.
I am with Eon and will be changing my tariff when my present deal ends on 1st October 2009

SaveOnline no Standing Charge for 900Kwh per year
900 @ .2373p.

so using 900 Kwh in a year that will cost (900 *.2373) £213.57
SaveOnline Standing Charge for 900Kwh per year
(365 days * .32802p = £119.73) + (900 * .103845 = (£93.46) = £213.19

so cheaper with Standing Charge by 38p
My consumption is about 4250Kwh per year which according to my spreadsheet gives

SaveOnline no Standing Charge (900 * .2373p = £213.57) +( 3350 * .103847p = £347.89) = £561.46
SaveOnline Standing Charge (365 days * .32802p = £119.73) + (4250 * .103845 = £441.34) = £561.07

So if I use 900 or more Kwh in a year I am better off by 39p with a Standing Charge tariff from Eon.

If I do the same sum for gas using the gas tariffs there is no difference for my consumption of 18000Kwh.

So why even have two tariffs?

Thoughly

Jen

jd87

It's all just done to confuse people and make it harder to switch. If you have very low usage then the standing charge tariff can work out cheaper. Rare though.

KimYeovil

jd87 wrote: »

It's all just done to confuse people and make it harder to switch. If you have very low usage then the standing charge tariff can work out cheaper. Rare though.

Wrong way round, surely? (And it is not all that rare. The Tier 1 margin for gas is very easy not to escape from and many users will save with no standing charge tariff. Allowances are not carried forward across bills.)

(Caveat: we are, off course, just discussing where the same tariff from the one supplier is available in both a daily standing charge and a no daily standing charge option. Comparing different tariffs from different suppliers is different and standing charge tariffs can be cheaper in that situation.)

jenny2009

Yes but who uses less than 900Kwh of electricity a year.

I did also start to compare different suppliers but it seeemed that they were all the same. Use more than the yearly allowance of 900Kwh and it makes no difference whether you use a 2 tier tariff or a standing charge tariff.

I gave up in the end, if the difference in changing suppliers and tariffs was less than £30 a year from what I am paying now it's not worth the hassle to me.

Same with saving energy, I was going to buy a solar charger costing maybe £20 to recharge my mouse batteries, then I thought would I even spend £20 in electricity costs charging them up. 6watts for 24 hours every week comes to about a £1 a year. It would take more than 20 years to recoup the cost.

Jen

KimYeovil

Single people who work during the day and who go out some evenings and who have a gas-powered shower.

Former_E.ON_Company_Representative:_Malc

jenny2009 wrote: »

I have been playing about with a spreadsheet trying to work out what the difference in cost is as regards standing charge and no standing charge.

So why even have two tariffs?

Jen

Hello again Jen

Following feedback from our customers a couple of years ago a significant number asked for a credit tariff with a Standing Charge rather than the two tier primary/secondary rate format.

The Standing Charge version of our online tariffs was introduced as a direct response to this demand.

Malc

jenny2009

Hi Kim, I have learnt something new, :j do people actually use less than 2.4Kwh of electricity a day (900/356)?

And I think I am doing great if I can get it to less 10Kwh.

The last time I went on holiday I left my Sky+ on, my fridge and my freezer and used on average, for the 14 days 3Kwh per day and there were no lights on.

I really must stop playing about with my excel spreadsheet and get out more but I am going on holiday soon so I am saving the pennies and the weather here is terrible just now so I can't even get into the garden:eek:

Retirement is so fullfilling :beer:

Jen