How does one compare the energy market?

maryfraser

How does one compare the energy market? why is there 5% vat on both gas and electricity prices. Does the Government not realise that the high energy costs impact on all aspects of life - if you cannot afford to cook hot food or to keep warm during the winter month it snowballs on the NHS- no, I don't suppose they do as we pay for their second homes energy and food bills!!!! I want to compare the market but one must compare the unit costs for both Electricity and Gas prices and the standing charge per day! The Companies who quote very low prices on a 'Standing, fixed Price basis surely ask for final reading if you want to change again at the end of the Contractual basis - then you pay for what you use!!
Therefore it is essential to compare the 'unit price and 'standing charge per day' before committing to another Energy Company - so if anyone out there cannot quote me 'Unit Prices and Standing Charges' per day plus a 5% vat inclusive figure I will be forced to resort to solid fuel alternatives and forget about Global Warming at least be able to stay alive and warm.

Nada666

Uhm, which is why comparison sites exist and where you are expected to make three inputs - your postcode and your likely annual usages in kWhs. The comparison sites' servers then do the sums for you to stop you going cross-eyed staring at a list of prices in pennies to three decimal places without VAT trying to guess things out in your head.

Farway

maryfraser wrote: »

why is there 5% vat on both gas and electricity prices

VAT is on energy because it was zero rated under Labour, but the Tories raised it to 15%

The Labour party reduced it to 5% when they won the election, but under EU rules once something is VAT rated the minimum it can then be is 5%, it can never go back to zero

stewie_griffin

Farway wrote: »

VAT is on energy because it was zero rated under Labour, but the Tories raised it to 15%

The Labour party reduced it to 5% when they won the election, but under EU rules once something is VAT rated the minimum it can then be is 5%, it can never go back to zero

John Major did increase it but from 0% to 8%, then as you say labour brought it down to 5%.

costabom

Tariff comparison rates which came in earlier this year do go some way to clarifying the situation - I'm not allowed to post a link, so try a google search.

c.bom

spiro

If you think 5% VAT is bad, in Spain they pay about 5% electricity charge on top of their consumption and then 20% VAT on the lot. That's the equivalent of adding 20% to our bills. Despite how much we complain about the cost of energy we are nowhere need to top of the list for prices within the EU.