Switching fuel - tier 1 and 2 rates

hermante

Quick question, when switching gas, do any suppliers charge the Tier 1 rate on units previously charged at Tier 2 if you haven't gone over 4572kWh for that year yet?

Cardew

No!

It is a daily pro-rata allocation of tier 1 units. e.g. If you used no gas for 6 months(two quarters) and, say, 30,000kWh in the other 6 months, you would only pay for 2,286kWh at tier 1 rates.*

This is why some people shut off all gas during summer months.

* Doesn't apply to NPower who have 'seasonal weighting'(sculpting) of Tier 1 units. i.e. more Tier 1 units in winter months

lithopsian

The units are usually allocated based on your billing period, often quarterly. They aren't carried forward or back-dated.

[Deleted User]

I know on electric prepays, which are set for "no standing charge " tariff, tier 1 and 2, the billing period is 91 days , then it zeros back. i suppose the credit meters work on the same principle

Terrylw1

Units are allocated per each 91 days over the year. So, you have o exceed this to benefit from tier 2 lower charges.

Its unlikely this will always be the case such as in summer but winter would see more tier 2 usage hence a year balancing effect occurs.

Npower decided to go one step further by introducing seasonal weighting which is a way to decrease the tier 1 thresholds in warmer months and to increase tier 1 in colder months. The effect should give yearly balancing but if switching midway through, it can work out worse given the other suppliers just live off the 91 day rule.