Business or Domestic tariff cheaper?

mumof8

PLease could someone advise me. I home educate my children so am registered as a 'home School' with british gas, therefore we have a business account for our home. Is this the cheapest option or should I swop to a domestic tariff. We pay 14.560p a unit, 46.700p a day standing charge. I would appreciate the help as my husband has just had his work hours cut by 32 hours a month, and he won't have a xmas bonus this year. With 8 children to feed etc we really have to tighten our belts.

Premier_2

What do you use your home primarily for?

If its used primarily for residentail purposes, then you should be on a residential tariff.

You will find a much better deal than you currently have - just use a comparison site to see.
(just choose any current tariff, you will still get a list of annual costs and compare that to the annual cost you currently pay)

Not sure how you go about breaking the existing contract you have though - check it out carefully before jumping overboard!

penrhyn

Dunno, have you tried putting your annual usage figures (Kwh) into a comparison site?

Airmike23

You should be on domestic tariff, the standing charge is ludicrous to start with, and the majority of domestic tariffs the secondary rate (the one most of your energy is charged at) is typically between 8-13p a unit (depending on power co and tariff). Your standing charge alone costs over £244 a year and thats before you even start calculating cost for KWh used based on the 14.56p unit rate, as poster above suggested get annual KWh consumption and do a comparison.

spiro

Domestic or Business and hence the VAT you pay should be determined by how the majority (50%+) of the fuel is used. If you are not educating other people's children or not running a business from home that uses over 50% then you should be on a domestic tariff.

However if you are signed up to a business tariff you are tied in for 1/2/3 years and you need to be very careful about termination otherwise you can find yourself rolled over onto a new contract. Also on a busines tariff you can just change suppliers/tariff.

dogshome

Hi mumof8 - The tariff prices you are being charged are off the roof and for you to be on a 'Business' tariff makes no sense.
Although you have had to register as a 'Home School', the children involved are your own and you do not issue invoices, make any charges or have to make a Business Tax return to the Inland Revenue and are not liable for the Commercial VAT level of 15% on your Utility Bills

Is it the case that soon after you registered as a Home School, that you were approached by an Agent or Utility Co. telling you that you had to go onto a Business tariff ?
If this is the case, contact your supplier, advise them of your financial structure and tell them you want out - This won't be easy as these Business Contracts are a minefield and virtually unbreakable and your best bet is that you were lied to if you were told you "Had to have a Business Contract"

If the supplier won't play ball, make a Complaint to the Office of Fair Trading, but meanwhile read that contract very carefully, paying particular attention to it's Terms regarding it's anniversary end dates and any notices you have to give