What to consider when choosing a tariff?

heytoki

Hello all,

I am moving to a new property and i will have to choose my gas/electricity supplier. So far, i have been always living in a rented house, sharing with other people so i never chose the electricity/gas supplier so i dont understand about tariffs.

Now, i will have a place by my own and i would like to understand what tariff i need to choose.

What are the different kind of tariffs the companies offer? i work 9 to 5 Monday to Friday. A standar tariff should be enough?

Thanks

Nada666

No, you want a 'fixed' tariff (where the price per kWh is fixed for twelve or fifteen months or whatever) and to pay by Direct Debit. That will give you up to thirty percent discount on a Standard Tariff.

Of course you will have to monitor your usage - although in the long run the final price you pay can be twenty or thirty percent lower this may be moot if you don't pay attention and end up having your Direct Debit increased by one hundred or one hundred and fifty percent.

If you really have no idea what your usage will be then start with a typical average use (13,500 kWh gas and 3,200 kWh electricity) and use a comparison site such as energyhelpline.com to choose a supplier and tariff. (As a single person you can easily expect to only use half this gas and two thirds of this electricity. But...)

If you start off paying a whole £80 or £95 a month you (should) at least eventually pay less - once you find out after a while how much you use you will probably find you use much less. But until you pay attention to your meter it is better to end up haranguing to receive a refund or reduce your payment than to end up paying arrears and higher payments.

JJ_Egan

Tariff is unit price per kwh for amount used .
This is what the meter reads .
" Daily standing charge paid daily but a no standing charge tariff is available from some suppliers but unit charge is more expensive .

A Standard Tariff is the more expensive tariff .
Does not matter what hours you work key is how much energy you use .

Direct Debit and annual total are just estimates not fixed prices .
No idea of usage then just use the averages on the comparison site .

See
http://www.moneysavingexpert.com/cheapenergyclub

dogshome

It's important that on the day you move to your new home, that you register your occupancy with that dwellings current suppliers of Gas, Electric & Water and give them the meter readings - The rules are that you must use these suppliers when you move in, but be aware that as a new customer the Gas & Elec suppliers will put you on an expensive 'Standard' tariff - You can change the tariff and/or suppliers once you have registered.
At this stage no one can even make a guess as to what supplier/tariff would be best for you - If you can post details of the new dwelling - Size/Typeof heating/
Quality of Insulation etc., then fuller answers can be given

heytoki

Thank you both for your replies.

Another question i have is that when i choose the company i will go for and the tariff. Do i need to provide the meter reading left by the old occupier right? (sorry if it is a stupid question but as i have never done it i want a full understanding)

thanks

heytoki

dogshome wrote: »

It's important that on the day you move to your new home, that you register your occupancy with that dwellings current suppliers of Gas, Electric & Water and give them the meter readings - The rules are that you must use these suppliers when you move in, but be aware that as a new customer the Gas & Elec suppliers will put you on an expensive 'Standard' tariff - You can change the tariff and/or suppliers once you have registered.
At this stage no one can even make a guess as to what supplier/tariff would be best for you - If you can post details of the new dwelling - Size/Typeof heating/
Quality of Insulation etc., then fuller answers can be given

It is a two bedroom flat, 70sq meters in a purpose built block (3 storeys), central heating, double glaze windows and well insulated.

The actual owner is using british gas for both (gas and electricity), so as per your comments i need to register with British Gas as soon as i moved in and then choose another supplier if i consider that is cheaper?

modsandmockers

The 'fixed' tariffs are definitely cheaper, but they sometimes charge an exit fee which can be a nuisance if you discover a cheaper tariff during the fixed term. But I think exit fees seem to be going out of fashion, so just look at the small print to find out.

Some tariffs are already discounted, and can only be paid by direct debit, and there's usually a discount if you choose direct debit. The energy companies will happily allow you to think that paying by DD can only be done on a monthly payment plan, but very often, you will pay the same discounted price if you pay by quarterly direct debit on receipt of bill.

Monthly payment plans can be a source of great confusion for many many customers, because the energy companies appear to bump the monthly payment figure up or down completely randomly, and if you don't monitor your usage and bills, it's quite easy to build up quite a large deficit or credit, which frequently leads to tears!

My own preference is to estimate my own annual energy costs, divide the figure by 12, and pay a monthly amount into a dedicated current account with a quarterly debit debit set up for payment on receipt of bill. This allows me to keep full control of my own 'payment plan', and prevents the build-up of a debit or credit balance with the energy supplier. Obviously, if you start in the Autumn or Winter, you will have to 'front-load' your payment plan a bit because your first couple of bills will be the higher ones. But by the beginning of year two, you will have a much clearer idea of how to eke out your energy costs evenly over the course of the coming year.

Avoid estimated meter readings by submitting your own meter reads every month. And always check your bills very carefully, and keep them safe - they will become a history of meter readings, annual consumption, prices and price changes.

modsandmockers

heytoki wrote: »

as per your comments i need to register with British Gas as soon as i moved in and then choose another supplier if i consider that is cheaper?

At the same time as you register with BG, ask them to put you on a cheaper 'non-standard' tariff immediately, but take into account that, if the cheaper tariff carries an exit fee, then you might prefer to pay the higher 'standard' price for a short time while you explore your options.

heytoki

i have checked a few websites and there are a lot of companies cheaper than british gas. And all the websites agree with SSE being the cheaper. Can i sign up with them as soon as i move in? or do i need to talk first with British Gas?

Hoof_Hearted

The first decision is not to go for Scottish Power as they will do your head in.

Cardew

heytoki wrote: »

i have checked a few websites and there are a lot of companies cheaper than british gas. And all the websites agree with SSE being the cheaper. Can i sign up with them as soon as i move in? or do i need to talk first with British Gas?

You give your gas/electricity meter readings* to BG as soon as you move in( or have responsibility for the flat).


You can then contact SSE immediately and set in motion the switching procedure.


* Don't forget water meter reading(if metered) to water company.