Is a standing charge cheaper for low gas users?

London_Town

I'm coming to the end of my British Gas deal and have been offered the "on line variable november 2013" contract which is essentially a 6% discount off the standard price. If I don't sign up to this deal, I'll automatically go on to their standard tariff.

However, what is confusing me is the new "standing charge". I can't get my head round whether it is better for low energy users?

The figures quoted are a standing charge (daily) of approximately 29p with a unit rate of just under 4p. The standard tariff loses the standing charge but is just under 9p a unit for Tier 1 (up to 2680 units) and then just over 4p a unit.

Last year my gas consumption was around 4000 units, but I accept it may go up. Im sorry, my maths is hopeless, can someone equate my consumption to my two options please?

Emotionally, I feel the standing charge may be a good thing. I say this as I'd be paying it regardless (£105:85 a year?), with a much lower unit charge. Therefore, I'd be less worried about the cost and would be able to have the heating on more often without worrying. Or have I completely misunderstood that aspect too!!

Any constructive help would be appreciated please.

espresso

The Standard tariff works out £28.15 more per annum, which equates to approx 703 kWh of gas.

London_Town

Thanks very much espresso, it confirms my suspicions that the new deal is a better bet.

It's still a struggle to get away from the idea of a standing charge being a bad thing, but it may well be the better option for a low user like me.

Wywth

At just 4000kWh p.a consumption for gas, I suspect you would be better off with another supplier/tariff e.g. you could save an additional £80 with Ebico who offer a tariff with no daily standing charge nor two tier pricing.

Use a comparison site to see who is best for you.

Man_Overboard_2

London_Town wrote: »

I'm coming to the end of my British Gas deal and have been offered the "on line variable november 2013" contract which is essentially a 6% discount off the standard price. If I don't sign up to this deal, I'll automatically go on to their standard tariff.

However, what is confusing me is the new "standing charge". I can't get my head round whether it is better for low energy users?

The figures quoted are a standing charge (daily) of approximately 29p with a unit rate of just under 4p. The standard tariff loses the standing charge but is just under 9p a unit for Tier 1 (up to 2680 units) and then just over 4p a unit.

Last year my gas consumption was around 4000 units, but I accept it may go up. Im sorry, my maths is hopeless, can someone equate my consumption to my two options please?

Emotionally, I feel the standing charge may be a good thing. I say this as I'd be paying it regardless (£105:85 a year?), with a much lower unit charge. Therefore, I'd be less worried about the cost and would be able to have the heating on more often without worrying. Or have I completely misunderstood that aspect too!!

Any constructive help would be appreciated please.

It is even more complicated than you think!

BG's 'Standard Tariff' (note the capitals...) is no longer available

BG's 'standard tariff' (note the absence of capitals...) is now called 'Clear and Simple', and at the end of WebSaver12, you will find yourself on 'Clear and Simple', which involves paying a daily standing charge. British Gas no longer offer any 2-tier tariffs, they only offer tariffs which entail a daily charge.

If you are confident that you know your annual consumption (in kWh), then it is easy to get comparisons from all the appropriate websites, including the British Gas website.

Alternatively, as an existing customer, you could simply call the British Gas call centre

ps - the idea of moving from 2-tier tariffs to Standing Charge tariffs, is to make it easier for consumers to understand their energy costs. If it isn't working for you, then I suggest you write to your MP.

Man_Overboard_2

Man_Overboard wrote: »

It is even more complicated than you think!

BG's 'Standard Tariff' (note the capitals...) is no longer available

BG's 'standard tariff' (note the absence of capitals...) is now called 'Clear and Simple', and at the end of WebSaver12, you will find yourself on 'Clear and Simple', which involves paying a daily standing charge. British Gas no longer offer any 2-tier tariffs, they only offer tariffs which entail a daily charge.

If you are confident that you know your annual consumption (in kWh), then it is easy to get comparisons from all the appropriate websites, including the British Gas website.

Alternatively, as an existing customer, you could simply call the British Gas call centre

ps - the idea of moving from 2-tier tariffs to Standing Charge tariffs, is to make it easier for consumers to understand their energy costs. If it isn't working for you, then I suggest you write to your MP.

LATEST UPDATE...

Websaver12 finished on Sunday, and contrary to the information which I was given on 3 separate occasions by British Gas call centre staff, my electricity tariff has indeed been switched to the obsolete 2-tier Standard Tariff.

My gas tariff, however, is still Websaver12 (2 days after WS12 was supposed to have finished)...

macman

Why not simply run both tariffs through any comp site and you will get the answer in seconds?
Everything else being equal, a low user will be better off on an NSC tariff. However, defining a 'low user' is more problematic.

lisa701

I don't use much gas and found that all the comparison sites came back saying it would be a lot more costly to stay with British Gas than to swap, so thats what I've done. I'm just about to submit my final readings to British Gas and then hopefully will transfer to Scottish Power.