Gas prices lowered OR NOT

Philip_Jackman

I have just switch our duel fuel energy tariff, partly because it was coming to an end. Now this is the interesting bit....Gas prices.

Yes the cost of the GAS has gone down from the tariff we were on (a fixed price tariff of 15 months old) from 2.88p per unit to 2.274p per unit. A cost reduction of 22% reduction in the cost of the gas.

BUT......

The cost of the standing charge for the gas has increased from 8.45p/day to 19.331p/day at 128% increase in the cost of the standing charge for the gas.

What does this all mean....

Previously over a year we were paying (inc standing charge £508.64 +£30.84 = £539.48

Now on the new tariff we will pay 401.61 + £70.56 = £472.16 a net reduction of only 13%

However according to the online charts the wholsale cost of gas has roughly halved over the same period.

My point is this this energy company (just so happens to be NPOWER) are the cheapest for me on comparison web sites, but it would appear that this energy company are compensating for the wholesale reduction in gas prices by inflating the standing charge price. The net result is that very little actual savings in the reduction in the wholesale gas price are actually passed on to the customer. How can the energy regulator allow them to get away with this?

molerat

Ignore unit price and standing charge and concentrate on how much your annual bill is. A reduction of 13% on your bill is a reduction.

Philip_Jackman

But my point is it would appear that the energy company is compensating for the approximate 150% reduction in the wholesale cost of gas over a 18 month period by inflating the standing charge cost by 128%., i.e. They can have the media headlines in how they have reduced the cost of gas when in reality they are doing their best to keep the overall cost static.

JJ_Egan

Unit costs and standing charges vary from tariff to tariff and supplier to supplier .

You can get gas with no standing charge from Ebico .


I have just significantly reduced my standing charges on gas and also the unit costs that my current supplier would charge on the new contract .
Zog for gas and GB Energy for electric .

System

JJ_Egan wrote: »

I have just significantly reduced my standing charges on gas and also the unit costs that my current supplier would charge on the new contract .
Zog for gas and GB Energy for electric .

Likewise.

The problem with simple comparisons is that they are only a good deal if you use the amount of energy assumed in the basic calculation. If you use more or less, then the best deal changes significantly.

For example, I compared the latest MSE switch when it was announced. It would have cost me £5 a year more than my Zog/GB supply deals. Hidden in the detail though were £60 of discounts. When I compared gas with gas, then E.oN came out £64 more expensive than Zog. Electricity was a similar overall cost.

Yesterday, Zog reduced its tariff price. I was able to switch - without penalty on this occasion - and I have saved £30 more. If, say, next Winter I use 10% more gas then this will cost me less with Zog than E.oN.

You pays your money and takes your choice.

Philip_Jackman

Those rates are not available to me in my area on any comparison web site but I still think my point still holds.

How can an energy company compensate for the lower price of wholesale gas by hiking the cost of its standing charge..

Npower were the best option for us on comparison web sites, but despite energy prices dropping over the last 12 months the predicted cost of my energy for the next 12 months will be £25 per year more than it would have been on my previous tariff if that tariff was still available.

Energy prices come down but the overall cost of my energy goes up. Does not compute!

JJ_Egan

Dont use comparison go directly to Zog and or GB Energy .

My prices have come down significantly so it does commute .

poppasmurf_bewdley

Philip_Jackman wrote: »

Energy prices come down but the overall cost of my energy goes up. Does not compute!

I thought you said your bill had reduced by 13%?