How do Scottish Power calculate my bill?

Ageing_Stick_Insect

I'm on the Scottish Power Online Fixed Price Energy March 2014 tariff which has no Standing Charge. Instead they have a charge for Primary and Secondary Units. Primary Units are around twice the price of the Secondary rate.

I'm pretty sure that as you consume gas and electricity all units are charged at the higher Primary Unit rate and once that limit has been reached all remaining units are charged at the Secondary rate.

Could someone either from SP or a knowledgeable person confirm this is the case please? It makes sense because low summer gas usage would ensure you always pay the higher price.

Thanks.

jalexa

Ageing_Stick_Insect wrote: »

I'm pretty sure that as you consume gas and electricity all units are charged at the higher Primary Unit rate and once that limit has been reached all remaining units are charged at the Secondary rate.

Could someone either from SP or a knowledgeable person confirm this is the case please?

Find the Terms and Conditions for your tariff here...
http://www.scottishpower.co.uk/legal/terms-and-conditions/

I suspect you are not quite right. Typically the primary units are apportioned quarterly. The tariff tables are quite clear where that is the case.

Ageing_Stick_Insect

Hi Jalexa,

I couldn't find my tariff listed on that link but you're quite right in that the primary units are apportioned quarterly.

So, would all my consumption up to that quarterly limit be allocated to Primary before the Secondary charge kicks in? I guess it does otherwise they wouldn't gain during summer months.

The alternative would be for the quarterly limit to be divided by 91 and allocated evenly across the whole quarter. That strikes me as less likely.

Nada666

The bills are calculated on a daily basis. If the bill runs a standard 91 day quarter there will be 225 tier 1 units. If it is an interim bill that only lasts 20 days then you will only be charged 20 times the 225/91 tier 1 units, that is about 2.47 units per day.

If you receive a bill for one day but use 20 units you will only pay 2.47 units at tier 1.

Ageing_Stick_Insect

Thanks Nada. That clears my confusion up. I give them a meter reading every quarter very close to the 91 day marker. The last one was around 85 days so presumably I would only be charged 85/91 of my quarterly allocation.

Scottish_Power

Ray

The pricing booklet for your tariff is here

http://www.scottishpower.co.uk/pdf/2014.03OnlineFixedMarch_2014.pdf

Primary units are 225 kWh per quarter electricity and 670 kWh Gas we will pro rate the primary charges dependng on the number of days billed.

If you need any specific help please e-mail [EMAIL="social@scottishpower.com"]social@scottishpower.com[/EMAIL] Thanks David

Ageing_Stick_Insect

Thanks for that David. One question about the DD. I usually submit meter readings each quarter - as close to the 91 day limit as I can. Each bill that SP calculate usually means a change in the DD amount.

If I submit readings every 31 days or thereabouts would the same change to my DD be made? It does get very tiresome having to explain to your Customer Service agents that because I joined you in October I am going to build up a large debit over winter that will be cleared by the 12 month anniversary. I get the feeling you expect your customers to be in credit for most of the year which I find quite unfair.

jalexa

Ageing_Stick_Insect wrote: »

It does get very tiresome having to explain to your Customer Service agents that because I joined you in October I am going to build up a large debit over winter that will be cleared by the 12 month anniversary. I get the feeling you expect your customers to be in credit for most of the year which I find quite unfair.

Will be interesting the hear the current Scottish Power explanation. On two previous occasions where this has been discussed in the forum the SP rep has confirmed that Scottish Power carry out a rolling 12 month DD calculation unlike, for example, Edf who carry out an 'anniversary year' calculation of the type you attribute to SP.

A problem with both forms of calculation, for customers of less than 12 months standing, is that there is no statutory statement of annual consumption. I speculate in your case the projected annual consumption being used for the calculation may not be objective.

Given statutory annual consumption and a 12 month rolling calculation I would expect a DD calculation to be completely transparent.

Ageing_Stick_Insect

jalexa wrote: »

Will be interesting the hear the current Scottish Power explanation. On two previous occasions where this has been discussed in the forum the SP rep has confirmed that Scottish Power carry out a rolling 12 month DD calculation unlike, for example, Edf who carry out an 'anniversary year' calculation of the type you attribute to SP.

A problem with both forms of calculation, for customers of less than 12 months standing, is that there is no statutory statement of annual consumption. I speculate in your case the projected annual consumption being used for the calculation may not be objective.

Exactly. How is it possible to calculate with any degree of accuracy what my consumption will be when I have just joined them? This is what is so frustrating. They probably use some formula which guarantees the DD will go up (often by a huge percentage) to benefit them and their shareholders.

Given statutory annual consumption and a 12 month rolling calculation I would expect a DD calculation to be completely transparent.

That's assuming of course that customers remain with them. I always shop around for the cheapest deal and if it happens to be SP then all well and good. But if not then the whole process starts again with another supplier who has the same agenda.

Nationalise the lot of them! Privatisation was the single worst decision taken in a generation.

jalexa

Ageing_Stick_Insect wrote: »

Nationalise the lot of them! Privatisation was the single worst decision taken in a generation.

Well I think that is another agenda not related to the first year DD issue which is the untold downside of switching and a disgrace acquiesced in by Ofgem, Consumer Focus and though it pains me to say it, MSE (and Moneysupermarket). In fact the whole rationale of switching is hugely compromised by the failure to recognise what is going on with first year DD.

The technical answer to "how is it possible" is partly that industry measures EAC should/could be used for electric and AQ for gas. Unfortunately until sorted AQ can be over 2 years out of date.

It is also possible to infer using standard seasonal weighting but that requires a degree of experience.

DUTR

Ageing_Stick_Insect wrote: »

Thanks for that David. One question about the DD. I usually submit meter readings each quarter - as close to the 91 day limit as I can. Each bill that SP calculate usually means a change in the DD amount.

If I submit readings every 31 days or thereabouts would the same change to my DD be made? It does get very tiresome having to explain to your Customer Service agents that because I joined you in October I am going to build up a large debit over winter that will be cleared by the 12 month anniversary. I get the feeling you expect your customers to be in credit for most of the year which I find quite unfair.

Submit the reading the day after the DD is deducted, as the computer just looks at the balance and reading at the time, so your account may look like it is in a larger debit than it really is.
eg 2*monthly less the actual usage as opposed to 3* monthly less actual usage.
If your DD is on the 5th, then submit the reading on the 6th, from you get the email to send in a meter reading there is usually a week by when they would like the reading.
Also you can enter your meter reads here and it gives a very close calculation of the bill due.

The last time they tried to increase my DD I got them to keep it the same, I will just pay the shortfall to bring the balance back to zero.