Electricity Tariffs explained - Standing Charge

LillyT1978

Hi,

Im after any advise, my tariff is due to end and I'm looking for alternatives.

One offered to me by scottish power is a Fixed Price tariff for 1 yr - total payable £825.52 with a standing charge of 32.88 and unit rate of 16.6 with an assumed consumption of 7111.

How can a different tariff eg Help Beat Breast Cancer Fixed Saver April 20 OL at £887.05 with a much reduced standing charge of 25.76 and a similar unit rate of 18.3 be so much more expensive than the original 1 year fixed deal offered above??

I really dont understand - i would expect with a lower standing charge and similar unit rate for the second option of 'Help Beat Breast Cancer Fixed Saver April 20 OL' to be the cheaper tariff - although its £62 more expensive!

Can anyone explain how its worked out? Worried to take the 1year fixed deal as although overall cheaper in £'s the unit rates are far more expensive??

r2015

16.6*7111 = 1181.43
32.88*365 = 120.01
total £1300.44


18.3*7111 = 1301.31
25.76*365 = 94.02
total £1395.34

System

Suppliers vary the standing charge/unit price mix in their tariffs to attract certain categories of customers. For example, high standing charges and low unit prices attract high usage customers. Conversely, a tariff with a high unit price and no standing charge attracts low energy users.

When making a comparison you have to look at the whole - not the parts. To get the best deal - that is, the lowest annual cost - you need two things to hand: one, your postcode and ,two, your projected annual usage in kWhs/year NOT £s.

As gas is my biggest variable, I also run two further comparisons based on +/- 15% of my annual usage to see if the best deal changes.

anna42hmr

If you wish to stay with Scottish power, you may wish to look on the MSE engergy club, as they had a tariff on the site that was not available from sp direct and although i was an existing sp customer, they were able to switch me to it via MSE.

Robin9

LillyT1978 wrote: »

Hi,

I...... with a standing charge of 32.88 and unit rate of 16.6 with an assumed consumption of 7111.

............a much reduced standing charge of 25.76 and a similar unit rate of 18.3 be so much more expensive than the original 1 year fixed deal offered above??

Your word of "similar" is a clue - they aren't ! 16.6 p and 18.3 differ by 10%. The words to use are "significantly different" when you have a consumption of 7111 units. This not balanced by the reduced standing charge

Hoof_Hearted

Looks expensive to me. Shop around.

elle_may

anna42hmr wrote: »

If you wish to stay with Scottish power, you may wish to look on the MSE engergy club, as they had a tariff on the site that was not available from sp direct and although i was an existing sp customer, they were able to switch me to it via MSE.

Did SP charge you the the exit fee's. I am on the jan 2019 tariff and don't think this will save me much if they do. Just to add ,they don't when i have switched to another tariff on their site.

anna42hmr

elle_may wrote: »

Did SP charge you the the exit fee's. I am on the jan 2019 tariff and don't think this will save me much if they do. Just to add ,they don't when i have switched to another tariff on their site.

I was within 45 days of the end of my tariff so they couldn't any way (as mine was the Cancer 2018 January tariff which was due to end on 31 January this year). However looking at their terms, it seems to imply they only charge exit fees on their tariffs if you move provider rather than to one of their own tarrifs