Fixed rate explained

Eyeballs99

Hi,

i have to admit I’m not as clued up on energy suppliers as I probably should be.

I'm currently with British gas and have decided to move across to EDF's online saver 7 with the £100 cash back and the £80 Quidco offer.

However, could anyone just clarify as to what it means by fixed daily charge is as from below. I have noticed that the fixed daily charge is higher than most but they drops down to quite a low unit rate. I'm unsure as to what you pay. If it’s fixed then surely you stay on the higher rate, how does the lower unit rate come into effect?

Little confused but I'm guessing it's quite simple, it mentions about daily and then whole billing periods.

My guess is you get charge the high rate until the end of the month then they reduce the rate to the lower for actual costs.

Any help would be much appreciated


Unit costs (pence per Kwh)Electricity[URL="javascript:showPopup(7)"][/URL]Electricity fixed daily charge and unit rate [URL="javascript:hidePopup(7)"][/URL]
The fixed daily charge will be applied daily for each whole day in the billing period. The unit rate will be applied to all electricity consumption in kWh consumed in the whole billing period.






Fixed Daily Charge24.381Unit Rate8.7885Gas[URL="javascript:showPopup(8)"][/URL]Gas fixed daily charge and unit rate [URL="javascript:hidePopup(8)"][/URL]
The fixed daily charge will be applied daily for each whole day in the billing period. The unit rate will be applied to all gas consumption in kWh consumed in the whole billing period.






Fixed Daily Charge25.59Unit Rate2.771

notbritishgas

The "fixed daily charge" is another name for "standing charge".
You pay this for each day in the billing period, whether you use any gas/electricity or not.
All of the gas/electricity is then charged at the tariff rate, ie 8.7885p per kwh for electric and 2.771p per kwh for gas.

Eyeballs99

Oh,

I think its just clicked. Do you get charged 25.59 units at the standard rate of 8.7885p for gas and 2.771 for Electric which would be X amount per month and then whatever the total of units used in that month will all be charge at that same rate again?

Or have I missed the point once again?

Bark01

Eyeballs99 wrote: »

Oh,

I think its just clicked. Do you get charged 25.59 units at the standard rate of 8.7885p for gas and 2.771 for Electric which would be X amount per month and then whatever the total of units used in that month will all be charge at that same rate again?

Or have I missed the point once again?

No you get charged 25.59p per day regardless of how much you use. So if your on holiday you will still be paying 25.59p per day.

What ever you use gets charged at 8.7885p for gas and 2.771 for Electricity.

Eyeballs99

Thank you both for your help.

Makes perfect sense now. Bit of a silly question really.

Definately worth switching then

Cardew

Bark01 wrote: »

No you get charged 25.59p per day regardless of how much you use. So if your on holiday you will still be paying 25.59p per day.

What ever you use gets charged at 8.7885p for gas and 2.771 for Electricity.

You have missed that they will also be paying 24.381p per day for gas.

So they will be paying standing charges of 49.971pence per day(approx £182 a year)

Eyeballs99

I guess you have to weight up the cost of the fixed rate and what you save on the lower unit rate

If you really wanted to you could see the £100 cash back from EDF and the £80 cash back from quidco cover all of your standard charges, so in effect you'll only be paying the lower unit rate for the year.