Standing charge verus two tier tariff

freeasabird

I am currently on the Britiish Gas online energy tariff that gives a 4% discount on standard charges.

It's divided into two tiers:

Tier 1 - 7.79 and Tier 2 - 4.39

I've noticed that there's an online variable Feb 2014 tariff which according to the comparison sites is a bit cheaper but has a standing charge instead of the two tier calculcation.

I'm I right to be concerned about a standing charge or does it give me a better deal?

My average consumption last year was
15245 khw

I realise I might get a better deal with another company just in case anyone is wondering about that but I'm also weighing up whether it's worth it to move to another company that might give me a lousy service.

Thanks in advance for any useful comments.

Cardew

On that consumption there will be no difference.

The daily standing charge is disadvantage to people with VERY low consumption - e.g. a holiday cottage where little is used in winter.

Indeed some people, with normal consumption, say they turn off gas in the summer period and pay no charges with the Tier system. This won't work with Standing Charges.

You should be aware that most of the companies will be dropping the Tier system tariffs and reverting to daily standing charges.

macman

If you really want to know, run it through a comp site for each tariff. For normal usage, the difference is tiny.

Atidi

Be careful - the suggestion that a SC tariff has no difference (or only a tiny one) to a NSC tariff where the usage alweays exceeds the tier 1 usage only applies where the tariffs are a direct comparison.

Of course, ther are lots of different tariffs available, even from the same supplier.
If a comparison site indicates (preferably supported by the same result from another) that tariff A is cheaper for you than tariff B, then it will be irrespective of how the charges are made up (i.e. with or without a SC)

alanq

freeasabird wrote: »

I am currently on the Britiish Gas online energy tariff that gives a 4% discount on standard charges.

I assume Online Saver 5 ending at the end of April. If you do nothing at that time you will be moved on to the most expensive Clear & Simple tariff. Given that it can take a couple of months to move to a new supplier you are right to be thinking about this now.

Note that Online Variable will lock you in until Feb 2014 unless you pay £30 per fuel to get out of it early.

If I understand correctly(!) Online Variable averages the estimated bill for the year and charges an equal amount each month. If you want to pay for actual energy used each month as you have been doing with Online Saver I think you would need to apply for Online Variable With EnergySmart. The price is the same as for Online Variable without EnergySmart.

freeasabird

Thank you all for your very useful comments.

My Britiish Gas online energy tariff ends in January 2014. I am tempted not to do anything about it until later on this year because according to the comparison sites; the online variable 2014 gives you at best; a £26 saving.

However, £26 is £26.

If BG are going to include a standing charge for all their tariffs; I'm wondering whether I should wait until that is the case before I move from the two tier system especially if I am still charged for actual energy charged rather than having it estimated.

Am I putting my head in the sand or being savvy?