Standing charge vs energy used

test45

I'm getting up to speed on my first gas and eletricity bills having recently moved into a new home.

I've stuck with the previous supplier to the house, which is SSE.

As I've been moving and due to issues with my boiler the first few bills have had low usage levels.

I've just gotten my second round of bills (I'm billed every three months). The electricity bill looks around what it was last time but the gas seems a bit skewed towards the standing charges.

For eletricity the charges are £15 for the units used and £12 for the standing charge.

Gas is £1.30 for the units used and £25 for the standard charge.

I do expect my energy usage to increase going forward but I'm still planning on being fairly light user. I only use gas for heating (water and radiators) and cooking (I've an electric shower).

Should I be looking at someway to reduce the standing charge for gas or is it normal to pay a higher cost in standing charges against the amount of energy used?

For electrity at the moment I'm on the Domestic Standard plan and for Gas I'm on the General Saver Plan

Cardew

In general there are two types of gas/electricity tariff.

1. A daily standing charge of xxpence per day and a rate of yypence for each kWh consumed.

2. A tier system where you don't pay a daily standing charge but a higher rate per kWh for the first zzzkWh consumed - termed Tier1 or primary units; the remaining units at a lower charge are termed Tier 2 or secondary units. This is effectively another method of collecting a standing charge.

Most of the time there is little to chose between the two methods as with normal consumption the money paid for the standing charge on either method is the same.

The exception is where you have very low consumption and use less than the Tier 1 allocation - like yourself. Then the tier system would benefit the customer.

victor2

The alternative to a standing charge and one rate for all usage is a two tier rate, where the first x kWh used are charged at a higher rate and subsequent usage at a lower rate.
In the summer, it can be a bit depressing when you see how much you're paying in standing charges compared to actual usage, but in the winter, when heating is on, it tends to even out.
Electricity usage tends to be pretty consistent over the year, with only a small increase in the winter, especially if you've got low energy bulbs. Gas, where used for heating, is of course very seasonal. If you've got any idea what the previous annual usage was in kWh, you could put that into a comparison site and see what comes up. It won't reflect your forthcoming usage very precisely, but may be a good place to start.
Standard plans are generally more expensive than the alternatives available, so you should be able to switch to a lower cost one. As you're unsure what your usage will be, look for a tariff with no exit penalty, so you can leave when you have enough history to predict future usage.

jalexa

test45 wrote: »

Should I be looking at someway to reduce the standing charge for gas or is it normal to pay a higher cost in standing charges against the amount of energy used?

Don't get bogged down with that. Instead enter your annual consumptions into a comparison website and the calculations will be done for you.

Cardew

jalexa wrote: »

Don't get bogged down with that. Instead enter your annual consumptions into a comparison website and the calculations will be done for you.

With respect, entering annual consumption into a comparison website doesn't always produce the right answer where there are periods where very little gas is used.

The OP only used gas costing £1.30 in a quarter(say 40kWh). If he entered a low consumption of, say, 10,000kWh into a comparison website, it would assume that consumption is spread evenly over the year.

Many people on MSE have reported that they switch off gas completely for 6 months in the summer - they would obviously avoid a tariff with a daily standing charge(DSC). Yet a comparison website might indicate a tariff with a DSC be the best choice

jalexa

Cardew wrote: »

entering annual consumption into a comparison website doesn't always produce the right answer where there are periods where very little gas is used.

I understand that but the OP has been on a standard (possibly non dual-fuel) arrangement for nearly 6 months. I'm not convinced now is the time for such a "sophisticated" approach. I'm advocating "enlightenment".

Anyway 40kWhrs/quarter for water heating and cooking is not very much water heating, about 1min/day combi DHW or much less than the 2kWhr losses of a very well insulated cylinder, so I'm not convinced by the figure.