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Switching fuel - tier 1 and 2 rates

hermante
hermante Posts: 596 Forumite
Part of the Furniture 500 Posts Name Dropper
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?

Comments

  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    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
    lithopsian Posts: 108 Forumite
    The units are usually allocated based on your billing period, often quarterly. They aren't carried forward or back-dated.
  • 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
    Terrylw1 Posts: 7,038 Forumite
    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:
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