We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Switching fuel - tier 1 and 2 rates
Comments
-
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 months0 -
The units are usually allocated based on your billing period, often quarterly. They aren't carried forward or back-dated.0
-
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 principle0
-
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.:rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards