Standing Charge vs Unit Rate

chris291

Hi

I was wondering if any one could help. I am currently with Npower for gas and elec. Online price fix feb 2015.
Gas is 4.087 per kWh, 12.243p per day standing charge
Elec is 12.00p per kwh, 26.18p per day standing charge

When doing the price comparison it saves i can save around £93 per year with Eon however the gas standing charge is higher at 21.903p with unit rate of 3.223p. Elec is lower for both standing charge 16.422 and 10.931p per unit.

I use about 4,342 kWh for gas and 1507 for elec.

Should i switch even though there is a higher standing charge for gas or should i switch to sainsburys which isn't as good unit rates but they have better standing charges.

Any help much appreciated.
Thank you

CashStrapped

Swings and roundabouts.

It depends on the type of user you are. High KWH users can benifit from a low rate and higher standing charge. Low users vice versa. However it is not always that simple.

The comparison site has worked all that out for you based on your previous KWH usage, so, I would just go with the cheapest deal!

Your usage is well below the UK average, so I would consider you a very low user. Have you confirmed your usage figures yourself using two confirmed readings one year apart?

The only time this may not apply is if you are out out of the house for most of the year and do not use much when you are in. In this scenario you may want a tariff with no standing charge, however this will have high tariff rates to compensate.

Nada666

You should also check prices where you have each fuel on a different tariff.

And you should do this every three or four months, not just once your fix is coming to the end - I suspect you could have chosen a better tariff for your electricity from npower. Price Fix Feb 2017 for electric and Jan 2016 for gas might have been better at the start of winter.

Your usage is high enough that the Sainsbury deal is also good. (Although it is a shorter fix with penalty charges.)

Joyful

Look on the individual Energy websites for the TCR - tariff comparison rate. This is meant to make it easier to compare. They take the Standing charge, unit price, discounts and anything else and roll it into 1 figure. Ofgem came up with this to make it easier to compare between suppliers.

matelodave

TCR only works when you are an average user - you need an individual TCR which takes into account your own consumption.
Some of OFGEM'srules have just made it even more complex and more expensive for some people

As said above, a high user benefits from a lower unit rate and higher standing charge whereas the opposite is true of a low user. That's why you really need to input an accurate estimate of your consumption.

Nada666

Joyful wrote: »

Look on the individual Energy websites for the TCR - tariff comparison rate. This is meant to make it easier to compare. They take the Standing charge, unit price, discounts and anything else and roll it into 1 figure. Ofgem came up with this to make it easier to compare between suppliers.

Useless for the usage of the OP. They almost always only show the TCR for median usage. And if even if they do provide an individual one it cannot be compared with those of other suppliers.

System

Joyful wrote: »

Look on the individual Energy websites for the TCR - tariff comparison rate. This is meant to make it easier to compare. They take the Standing charge, unit price, discounts and anything else and roll it into 1 figure. Ofgem came up with this to make it easier to compare between suppliers.

Sadly, that comparison is helpful but only a snapshot. If I have two tariffs which are broadly the same, then as a CH gas user, I look closely at the unit price for gas. For example, the winter is colder than average: how much more would I pay if I used 10% more gas?

Hoof_Hearted

Nothing in the gas but worth switching for the electric.

Typical year:

Electricity
kWh..... NP............Eon
1507..... 12.000..... 10.931
Cost..... 180.84..... 164.73
Days
365..... 26.180..... 16.442
Cost..... 95.56..... 60.01

Sub Total.. 276.40..... 224.74
Vat........ 13.82..... 11.24
Total..... 290.22..... 235.98

Gas
kWh..... NP.... Eon
4342..... 4.087..... 3.223
Cost..... 177.46..... 139.94
Days
365..... 12.243..... 21.903
Cost..... 44.69..... 79.95

Sub Total.. 222.14..... 219.89
Vat........ 11.11..... 10.99
Total...... 233.25..... 230.88

AndyPK

I would take a close look at the other tariffs npower offer as nada666 has said.

It's much less stressful changing from one companies tariff to the same companies tariff. Usually takes minutes. Say even if eon is £40 cheaper I would stay with your existing company, just changing your tariff.

And with npower you dont have to be on the same date tariff for gas and elec. Pick the ones which suits your usage.