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Prepayment meters and tier 1 caps
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Are the number of units charged at tier 1 capped or can they continue to accumulate until they break the clock?
That is, with standard quarterly billing on a credit meter (and for monthly direct debits where the bills are usually still worked out each quarter) the number of tier 1 units is capped each quarter - uncharged units are not carried forward. Say you are on a 2680 pa / 670 pq tariff. You ony use 500 kWh spring and summer but use 5000 kWh autumn and winter. The two lots of 170 uncharged tier 1 units are not carried forward so you save on 340 units over the year.
On a prepayment meter you clearly do not just pay for 7.4 tier 1 units on the days you top up - uncharged tier 1 units continually build up. Is there any sort of cap on how many unchargd tier 1 units can accumulate? Is it capped annually and zeroed on the anniversary? Or can they build up in perpetuity and you never get a break?
That is, with standard quarterly billing on a credit meter (and for monthly direct debits where the bills are usually still worked out each quarter) the number of tier 1 units is capped each quarter - uncharged units are not carried forward. Say you are on a 2680 pa / 670 pq tariff. You ony use 500 kWh spring and summer but use 5000 kWh autumn and winter. The two lots of 170 uncharged tier 1 units are not carried forward so you save on 340 units over the year.
On a prepayment meter you clearly do not just pay for 7.4 tier 1 units on the days you top up - uncharged tier 1 units continually build up. Is there any sort of cap on how many unchargd tier 1 units can accumulate? Is it capped annually and zeroed on the anniversary? Or can they build up in perpetuity and you never get a break?
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Comments
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The KBD meter operating in block tariff mode (2 tier) resets every 91 or 92 days but what you pay is reconciled every day so you dont use all the expensive units at the start of the month and the cheap ones at the end.IT Consultant in the utilities industry specialising in the retail electricity market.
4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).0
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