What does "no standing charge" mean?

ShinyShoes

I'm thinking about switching provider, I'm currently with Scottish Power on the following productL Online Fixed Price Energy May 2013 (No Standing Charge) - can I switch without a charge?

LeafGreen

a standing charge is a daily rate that you pay before you have used any gas/electric/etc. you'll find that the tariffs without them will charge more per unit of gas/electric that you do actually use.

So generally speaking tariffs without standing charges would be better for someone with low usage. Best to put your details through a comparison site based on actual usage to find the best for you.

This standing charge is nothing to do with any charge for breaking out of a contract early. Probably best to speak to your supplier to verify your position on that count.

Cardew

No Standing Charge(nsc) means their isn't a daily charge regardless of the amount of gas/electricity you consume.

Some tariffs charge, say, 35p a day(the standing charge) and then a flat rate for all the gas electricity used.


All other tariffs(except EBICO) use the tier system where you pay extra for the first xxxx units(Tier1 or primary units) then a lower rate for the Tier 2 or secondary units.

For most people the extra you pay on the Tier system is roughly equal to the daily standing charge. It is only with very low consumption that the Tier system is cheaper.

If you switch from your fixed price tariff you will be charged

Under the Online Fixed Price Energy May 2013 offer your prices are fixed
until 30th April 2013. Please note that your energy bill may vary depending on
how much energy you use. ScottishPower may apply cancellation charges inclusive
of VAT of £30.64 for electricity and £20.42 for gas if you switch to Online
Fixed Price Energy May 2013 but then cancel your supply contract or switch to
another tariff before the 30th April 2013.

Wywth

ShinyShoes wrote: »

I'm thinking about switching provider, I'm currently with Scottish Power on the following productL Online Fixed Price Energy May 2013 (No Standing Charge) - can I switch without a charge?

I suggest you follow the advice given in the MSE article here
http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

You will incur an early exit fee if you cancel your current fixed rate early, but if the annual savings indicated are twice that you will incur, then it could well be worth switching now.
(If that is the case, it sounds like you picked a poor fixed rate tariff originally)