Standing daily charges

Tan15

Hi

I'm looking into changing my electricity provider, currently thinking about switching to the EDF fixed saver V2 as my current provider has contacted me to say they are rasing the prices despite saying they would be fixed when I joined. THey have given me the opion to leave so trying to find a cheap fix. However two questions if I do go with EDF and fix until Sept 2012 do they have to honur this or can they just write to me, tell me they are changing the rates and give me the option to leave as my current providers have? Also is it cost effective having a stadard daily rate? never had one before and therefore don't really understand.

I would be really greatful if anyone can help me with any of this

Thanks

Cardew

Welcome to the forum.

The Daily Standing Charge(DSC) and the Tier system - which is in effect a standing charge - work out to roughly the same annual cost for most customers.

It is only people with very low consumption who will gain by the tier system - taking an extreme example if someone used no gas/electricity in a quarter(say a holiday home) they would pay nothing for that quarter.

Bebop_Beru

1. Whether EDF honour the contract at the fixed prices or push through a price rise will depend on the T&Cs of the contract in question. That said, I'm pretty sure EDF have a standard term which allows them to repeat what they've already done to you.

2. Whether a standard daily rate is cost effective will depend on a number of factors such as your usage and the current unit cost on the tariff.

Interestingly, the wholesale energy markets are in something of a flux at the moment but certainly until this month they've been going down since 2008.

And having just read through all that, I've realised it doesn't actually help you massively! What's your actual usage/circumstances?

Tan15

Hi Guys

Thanks for the replies, only been in my place for 4 months and have used just over 1000 kwh. Not sure if this equals low/average or high usage?

thanks

Bebop_Beru

Depends on your place!

As in whether it's a small flate or large house? Is it both gas and electricity or just electricity? When do you use the most energy, day or night?

Tan15

Hi

Its a 2 bed flat, electricity only and currently split is 40% usage evening 60% day.

thanks for your help

Premier_2

Tan15 wrote: »

Hi Guys

Thanks for the replies, only been in my place for 4 months and have used just over 1000 kwh. Not sure if this equals low/average or high usage?

thanks

This is in excess of the tier 1 levels, (and you would be expected to use even more during the winter time) so you'll be no better off on equivilent NSC tariffs.

Use a comparison site and just choose the cheapest tariff for you

bengasman

Although the system with standing charges works out about the same as the one with "without" standing charges, there is a distinct downside to the latter: it makes a straightforward comparison much more complicated. Those amongst us that distrust energy suppliers, also think that estimates invariably end up putting to many kWh's on the high tariff and in that way end up being more expensive than standing charges.

Bottom line: the simpler your billing system, the less chance they have of ripping you off.

cooking-mama

Tan15 wrote: »

Hi

I'm looking into changing my electricity provider, currently thinking about switching to the EDF fixed saver V2 as my current provider has contacted me to say they are rasing the prices despite saying they would be fixed when I joined. THey have given me the opion to leave so trying to find a cheap fix. However two questions if I do go with EDF and fix until Sept 2012 do they have to honur this or can they just write to me, tell me they are changing the rates and give me the option to leave as my current providers have? Also is it cost effective having a stadard daily rate? never had one before and therefore don't really understand.

I would be really greatful if anyone can help me with any of this

Thanks

What company/Tarriff do you have at present?,and when does it expire?as far as im aware,if you've signed up to a fixed rate then the energy company cannot raise or lower that rate until the contract expires.
Have they possibly sent out a standard letter that doesnt apply to you because you are on a fixed rate...Fixed should literaly mean Fixed.

gazjoneswales

bengasman wrote: »

Although the system with standing charges works out about the same as the one with "without" standing charges, there is a distinct downside to the latter: it makes a straightforward comparison much more complicated. Those amongst us that distrust energy suppliers, also think that estimates invariably end up putting to many kWh's on the high tariff and in that way end up being more expensive than standing charges.

Bottom line: the simpler your billing system, the less chance they have of ripping you off.

There is also a distinct downside to Standing Charge tariffs.
What if you go away for a few weeks? You still get charged the standing charge but if you submitted two meter readings before and after you go away then you dont get charged anything. Alot fairer if you ask me.

What about those people who use no gas during the summer? They still get paid a standing charge.

Or those with summer homes?
and so on and so on .....

I personally prefer the two teir system but i think all companies should use the same thresholds.

Also if you submit regular meter readings why would there be any estimates?