Tier useage

andrewr22

I notice a lot of the suppliers have different tiers depending on useage.

Is the useage calculated monthly, quarterly or annually?

For example, do they calculate 1 months useage and then the next month start again or does it cumulate?

Cardew

Most companies that use the tier method of charging calculate the tier 1 allocation daily.

e.g many companies have 4,572 Tier 1 units per year for gas. This means they charge for 12.53kWh per day at the higher tier 1 rate.(4572/365) So if you have, say, a bill for 83 days you will be charged(pro rata) for 83 x 12.53 = 1.040 kWh at tier 1 rate.

The major exception to this is Npower for their gas. They have 'seasonal weighting' (sculpting) which means although they use 4,572 Tier 1 units you pay for far more in the winter months(around 28 per day) and less in the summer.