VAT on energy

rocky53

I have been doing a comparison for my mum on energy club and starting looking at Green Star. As the daily standard charge was quite a bit higher than her current supplier Eon, but the quoted saving was quite high I calculated the annual charge myself based on the figures I put into energy club. The annual cost quoted was £631 which was what I calculated without vat. When I clicked on the link to switch, the moneysupermarket website quoted the same unit rates as including VAT, but the figures do not add up.

This is a serious issue as it means the annual costs are 5% out. Also if people are comparing what they spent on their bills which includes vat, with rates that don't include vat their saving is 5% out. The airlines were made to quote fares including compulsary charges otherwise they were misleading the puplic. Could someone from MSE explain why the same doesn't apply here?

chanz4

the 5% is domestic vat

System

VAT

If you are comparing unit rates or costs, please take into account VAT charges. All prices quoted on UKPower.co.uk include VAT at 5%. Suppliers can often quote unit rates which are + VAT.

Most comparison sites work in the same way.

MSE_Dan_L

Hi Rocky53

Just to confirm the figures shown on Cheap Energy Club include VAT at 5%.

I think in your case, the 5% coincidentally equates closely to the same amount as the tariff discounts which we also include in the price such as an online billing or dual fuel discount.

The details of these discounts are included under the tariff within 'feedback and full info' (the same section as where we show the unit rates), for Green Star Energy these add up to £30, which should balance out your calculation.

Finally just to confirm and avoid any confusion, we don't take off the £30 cashback in the tariff costs displayed.

Hope this helps.

rocky53

Apologies to MSE towers. My calculations were incorrect and the only difference between mine and yours is actually the 7.50 discount which hasn't ben applied to the total for some reason. I am looking at economy 7 tariffs

Thanks Dan have just seen your post while I was writing this. My only excuse is a senior moment:)

Hengus, my point exactly - they shouldn't. When I first signed up with OVO they were quoting rates without vat, and they said it was OK because they stated 'excl vat'. I notice they have now changed it though so good on them. If a charge is compulsory it should not be left out to make the price look cheaper.