Standing charge fixed price vs. No fixed price

jeannot18

I am currently with Southern Electric for Gas and Electric. I am on a Domestic Standard No Standing Charge plan. After reading/hearing about fixing the price of energy, I called Scottish Power. They can offer me a fixed price until December 2014, with 10.62p/kWh for electricity, and 3.434p/kWh for the gas, which is less than the current prices I am paying with SE (12.12p and 4.050p respectively).
But they are asking 34.25p per day for standing charge for each fuel (68.50p per day), taking the total to £250 per year instead of £114.32 i am paying right now. Is the amount of standing charge that high with fixed price a normal thing? Or is it just a way for them to get some money back?
J

molerat

Standing charges vary between companies. Input your annual kWh into one of the comparison sites and see what it gives as the best buy.

Cardew

The Regulator has insisted that all new tariffs will have a Daily Standing Charge(DSC) instead of the old tier system.

You have given a present charge of £114.32. Is that the additional cost of the tier 1 units? e.g. your tier 2 price for electricity is 12.12p/kWh so if the tier 1 price was, say, 18.12p it would cost you 900 x 6p = £54?

The only way to work out which tariff would be cheaper is to know exactly your annual consumption in kWh for both gas and electricity.

There will be a 'break-even' point above which the lower unit price will compensate for the higher DSC or extra tier 1 cost.

You also need to consider what discounts are give with a tariff as this can alter the break-even point.

The DSC varies tremendously with companies and tariffs. Ebico for instance have a zero DSC but high unit price; so are good for those with very low consumption. Others have a DSC of 45p per fuel(or more?)

matelodave

There are very few companies now who don't apply a standing charge - Ebico is the only one I know. They all have different standing charge and tariff rates so you need to check with the comparison sites which might be better for your circumstance. It's no good however just putting in you current payments - you need to use kw for the site to properly compare the prices.

Low standing charges & higher unit rates can favour lower use customers whereas those who use lots might benefit from a slightly higher standing charge and lower unit rates.

jeannot18

Thanks guys, I need to work out my yearly consumption and compare which plan will be best for me. I heard of some cashback incentive too, any links for this? This winter I decided to try to cut down our bills, and ask everyone in the house to be careful (is it that hard to switch off a light?), keep doors closed between room when not in use etc. And wear an additional layer when you feel cold, fed up to pay almost £200/month to utilities companies.
J