Fixed electricity price vs actual use

jfun

I am being offered a good fixed price by SSE, my current electrity (only) supplier. I want to go for it but what I don't understand is this... If at the end of the fixed term (one year in this case) my meter shows usage above what was estimated today, at what rate will I be charged for this excess, i.e. the fixed rate or the prevailing rate (one year hence)? Does anyone know as it's not shown on SSE's site.

Ryune

You will be charged at the fixed rate for all energy billed while the rate applies, whether that be more or less than what you've given when you sign up.

The only time an issue might come up is if your bill was underestimated at the time the rate ends and then you get a catch up on whatever rate you go on to. The supplier would likely bill that at the rate applicable when the read was taken.


The consumption you give to SSE is only to give you a cost indication. Generally only business's need to worry about exceeding contracted consumption, and even then it often only applies to larger users (1,000,000 kWh+) if its actually enforced.

Nada666

What is fixed is the price per kWh and the standing charge. You will be billed as you go along for whatever you use or, more likely, what they estimate you are using. Whether you receive catch-up bills after a quarter, six months or two years depends on reads you submit and the leeway of the supplier's computer's algorithms.

It is up to you to read your meters as you go along and keep an eye on the cost of what you have used and compare that with how much you have paid. If there is a difference then you know an adjustment will happen at some time. If you don't want a delayed larger adjustment make an extra payment or adjust the monthly payment yourself.

Nada666

The other factor you have to be wary of is that adjustments can be at least double and more than three times what you may think!

That is, say you have only underpaid by £10 per month - when the instalment is adjusted you have to pay back that £10 per month arrears plus you have to pay the £10 for your ongoing usage plus, if this coincides with a price increase, you will have to pay the extra 9% or 18% on the base instalment. So a £10 underpayment can end up with a greater than £30 extra 'repayment'.