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40% Cheaper Gas !?

iyiarz
iyiarz Posts: 257 Forumite
I used Martins recomended Switching site to investgate switching. I use very little Gas and Electric at the moment.

British Gas came up cheapest for combined Gas and Electric. (Click 5).

So I phoned Swalec to discuss my electric costs, get a refund of credit and switched to a 'no service charge' tariff, which they (backdated 6 months too:rotfl: ).
I told them I might switch to British Gas for my Electric.
Swalec informed me of their Gas prices. They were roughly 40% cheaper! with no standing charge!

British Gas Prices: http://www.britishgas.co.uk/pdf/Gas%20rates%20-%20click%205.pdf
Tier 1 6.200p (first 670)
Tier 2 2.601p
Tier 3 2.601p

Swalec: http://www.swalec.co.uk/ForYourHome/OurPrices.aspx
energyplus Pulse No Standing
Monthly Direct Debit - 3.70p inc per unit. (First 1143 units), then 2.61p inc

How can that be?

Hope I haven't been mis-sold. I'll have it in writing and 7 days to cancel...

Comments

  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    All companies(except Ebico) have a 'standing charge' in one way or another.

    Some(the minority) charge a daily charge and a flat rate for all gas/electricity.

    The majority charge extra for the first xx units per year and then a reduced rate for the rest of the units. These extra priced units are called primary units or tier1 units, and the rest tier 2 or secondary units

    This 'standing charge' by charging for extra units is only one factor in your total gas/electricity bill.

    The important factor is the overall charge for your level of consumption. That is made up of the price and amount of tier 1 units, the price of tier 2 units and the size of discounts. For most people the price of tier 2 units is the most important factor.

    So it is almost certain that BG Click 5 will be the cheapest for you.
  • iyiarz
    iyiarz Posts: 257 Forumite
    So it is almost certain that BG Click 5 will be the cheapest for you.

    Maybe I should have said.... I used around 1000 units in the last 6 months...
    Regardless, wouldn't Swalec not be cheaper? Unless I used massive amounts.
    Neither have a 'Standing Charge' so I'm guessing its added to the price per unit?
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    iyiarz wrote: »
    Maybe I should have said.... I used around 1000 units in the last 6 months...
    Regardless, wouldn't Swalec not be cheaper? Unless I used massive amounts.
    Neither have a 'Standing Charge' so I'm guessing its added to the price per unit?

    What do you mean by 1,000 'units'?

    The 3p and 6p prices you are talking about are for a kWh - not a gas unit on your meter.

    If you have only used 1,000kWh(which I doubt) in 6 winter months you are an extremely low user, with a bill of approx £30!!! In that unlikely case you would be better off with Ebico.

    If it is 1,000 gas units in 6 winter months you have used approx 11,000kWh if you have a metric meter(and that is still well below average) or 31,000kWh if you have an Imperial meter(well above average)
  • iyiarz
    iyiarz Posts: 257 Forumite
    Sorry, I forgot the meter isn't Kwh...Duhh!
    Swalec Charge per 'Unit' and British Gas are KwH... A unit could be defined as anything, lol, but looked it up and Unit = Kwh :/

    Yes, its 1000kwh for 6 months... Really! I'm not there often.

    I'll have to look into Ebico, Thanks
This discussion has been closed.
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