Confused lower standing charge, higher unit rate or vice versa?

sparkiemalarkie

Hi I am trying to compare gas prices.
What's better a lower standing charge and a higher rate per KWh
or the other way around?

I'm trying to compare (to June 2017)
SC- 11.739
KWh- 3.497

with (to Oct 16)
SC- 21.83
KWh- 3.258

I used 17150 kWh last year


Having read some of the horror stories about swapping suppliers I am loathed to give it a go..


thanks
sparkie

System

Ok - there is no one tariff solution that suits all. A low gas user might prefer a low standing charge tariff whereas a high gas user, such as yourself, might be wise to go for a gas tariff with a low unit cost per kWh. Why - because if it is a cold winter, a 10% increase in your gas consumption will cost you less than if you were on a low standing charge + high unit cost tariff.

Switching suppliers should hold no fear. I cannot see from the above whether any discounts apply or the costs include VAT. The difference seems to be about £4 per year.

FWiW, I would look at the theenergyshop.com website which does a simple this is what you have paid for 12 months on your present tariff, and these are what the costs might be for other tariffs going forward. It commits you to nothing and you could still use MSE CEC to switch and possibly get £30 back.

Despite what you might read on these forums, most switches go through without any problems. The key to a good switch is simply providing the new supplier with actual meter readings when asked, and checking that the opening readings on your new account agree with the closing readings on your final bill.

I would also choose a tariff with low or no exit fees just in case the cost of energy falls. You can then switch again and collect a further £30 for doing so.

sparkiemalarkie

Thank you so much for your reply.
I have tangled myself up in figures....
I guess the real saving would come if we were to reduce our gas usage.
I will take a look at the site you recommend and think about switching.


thanks again


sparkie

Owain_Moneysaver

It depends on your consumption. Assuming those figures are SC in pence per day, At 14000 kWh or less per year, A is cheaper. At 16000 kWh or higher per year, B is cheaper.

Scheme A		Scheme B
			
Standing Charge per day (p)	11.739		21.83
Days per year	365		365
Standing Charge per year (£)	£42.85		£79.68
			
kWh Charge (p)	3.497		3.258
Units per year	17150		17150
Units Charge per year (£)	599.7355		558.747
			
Total (£)	£642.58		£638.43

<a href="http://tinypic.com?ref=5as70x&quot; target="_blank"><img src="http://i58.tinypic.com/5as70x.jpg&quot; border="0" alt="Image and video hosting by TinyPic"></a>

<a href="http://tinypic.com?ref=nvsf4j&quot; target="_blank"><img src="http://i58.tinypic.com/nvsf4j.jpg&quot; border="0" alt="Image and video hosting by TinyPic"></a>

Not sure why images aren't loading. I did a spreadsheet for you.

Bigphil1474

As above, I worked out the 2 different rates as little more than £4 between them. The lower SC would be beneficial if you reduce your usage - although reducing usage by 10% would make the 2 rates about the same, so you'd have to go some to start making a big saving either way. Owain's very nice graph sums it up, there's not a lot between either rates, so keep on looking. The best way is to put your usage in any of the comparison sites and let them do all the maths for you. I'm on a fixed rate until next year which suits my budgeting method.

JJ_Egan

Real no standing charge advantage would be if you used no gas in the summer months and where then able to switch to a normal tariff for gas usage in the winter .

modsandmockers

sparkiemalarkie wrote: »

I'm trying to compare (to June 2017)
SC- 11.739
KWh- 3.497

with (to Oct 16)
SC- 21.83
KWh- 3.258

I used 17150 kWh last year

It's refreshing to hear from somebody who knows their own previous year's gas consumption, and has managed to find out the actual prices of the tariff(s) which they are are considering switching to.

The idea of the standing charge being a fair share of the energy supplier's fixed costs is nonsense - the current tariffs (which were supposed to make things simpler) are no better than the two-tier tariffs which were banned.

From your own figures, you can estimate your own annual gas costs for any tariff whose prices you have been able to find out.

As somebody else has already said, if you are willing to switch twice a year, then you might be able to get better prices according to the season, but you need to consider early exit fees.

Gas prices have been drifting down recently, so it is hard to know how long to fix for. But, if there are no exit penalties, then it makes it a bit easier. I certainly wouldn't have any confidence about predicting how long the downward movement in gas prices is likely to continue. You can be sure that the energy suppliers know more than we do!