📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Standing Charges

Options
Thinking of switching Gas & Elec from BG and would like advice on what are the advantages/disadvantages of Standing Charges.
BGs Standing Charges are zero but the supplier I was thinking about switching to has Standing Charges of £138/Gas and £21/Elec. Still gives me a yearly save of just over £200 but I don't understand how the Standing Charges affect things.
Thanks for any info/guidance.

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Just go with the tariff that gives cheapest annual charge.

    A standing charge is a charge that is made pro-rata daily even if you don't use any energy that day (or more accurately over the quarter as that is usually the timeframe the standing charge is applied).
    A standing charge is only an issue if you regularly do not use sufficient energy to warrant paying the standing charge. On no standing charge tariffs, most suppliers charge a higher price on the first units used that day/quarter to cover the cost of the standing charge (tier 1 rate).

    Comparison sites base their results on you using the maximum amount of tier 1 units, although with gas for example you may use all your gas in the winter only and none in the summer (assuming gas is only used for heating purposes)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.