British Gas - Two different rates for Gas?

MatTX7

hey all,
Im currently with British Gas. I recently phoned up to find out how much I'm paying (K/Wh) for gas and they quoted two rates.
Im thinking of switching to a company like Ebico, so wanted to see what Im currently paying.
Too be honest Im kinda little confused! My question is how does the two rate system work, am I charged more at certain times of the day or how often I use gas?

• 1 Rate 8.341
• 2 Rate 3.409

Thanks in advance

molerat

The higher rate is set for a certain number of kWh per year, usually divided equally between each bill period, and the remainder is at the lower rate. The difference is to make up for no standing charge but if you use below the unit threshold you do not pay the full standing charge equivalent.

Cardew

The more expensive Rate 1 is only charged for the first 670kWh used in a quarter*. It is in fact the standing charge i.e. 670 x 4.932p = £33 a quarter.

The majority of gas and electricity tariffs have this 2 rate system these days.

Some old BG tariff used 1143kWh but at a lower rate 1 charge.

Mankysteve

If memory serves me right its the first 45kwh a mouth. for the higher rate.

MatTX7

Thanks for the reply's,

So from looking at what BG are charging me would you say that is expensive, would it be wiser moving to Ebico who charge 3.675p per kWh for their Gas?

Cardew

MatTX7 wrote: »

Thanks for the reply's,

So from looking at what BG are charging me would you say that is expensive, would it be wiser moving to Ebico who charge 3.675p per kWh for their Gas?

It depends how much you use, how you want to pay and duel fuel or not.

Don't forget that BG give discounts for dual fuel and payment by Direct debit which makes the comparison less than straight forward.

Ebico's gas is pretty competitive - especially for low users, but not their electricity unless an ultra low user.

You can find out which is cheapest by entering your consumption in one of the comparison websites. That will take into account your method of payment and dual fuel or not.

fayraz

For a high volume user is it cheaper to get a tariff with a standing charge?

KimYeovil

fayraz wrote: »

For a high volume user is it cheaper to get a tariff with a standing charge?

It makes no difference. It's the total price that matters.

BexTech

fayraz wrote: »

For a high volume user is it cheaper to get a tariff with a standing charge?

You usually find there are only pennies difference.

fayraz

Entered my units for 2009 and it looks like it would be cheaper for me to switch to eDF Online Saver v5.

Looks like it would be cheaper for me to go with a standing charge instead of a two tier charge.

Does anyone know if there are penalities leaving Click Energy 5 with Energy Smart from British Gas?

Cardew

fayraz wrote: »

Does anyone know if there are penalities leaving Click Energy 5 with Energy Smart from British Gas?

None I believe.