high standing charge verses low tariff?

will14m

I've been trawling through the various utility companies and comparison sites looking for the best switch for my gas and electricity and have realised that the main difference between the tariffs is standing charge versus cost per unit.

My question is. When prices rise which cost will be affected more, standing charge or cost per unit? as this will effect which tariff to choose. Assuming a price increase affects cost per unit only, then a tariff with a lower cost per unit but a higher standing charge would be better value. I think???

Can someone in the know help please?

dc

This will depend on your actual useage in KwHrs.

If you are a low useage customer or not.

Low user should try to avoid Standing charges and go with someone like Ebico who have no standing charge, fixed or hidden ( i.e.2 Tier unit rates), just one unit rate.

The higher your usage is then the standing charge becomes a smaller percentage of the total cost. to the point of being insignificant when compared to the unit charge.

To work out costs accurately you have to apply/work out with a calculator how the tarrifs would cost using past bills with actual units used.

Premier_2

No one knows how a supplier will change their variable rate tariffs in the future, whether by affecting unit prices, standing charges, or discounts applied.

If you are concerned about rising prices, then fix or cap your tariff today.
Otherwise, Martin recommends you wait until the other suppliers show their hands regarding price increases before you make any decision.