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Understanding Tariffs - Standing charge

posted by Gillett | 3 years ago

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??

9 comments
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posted by Ernie_C | 3 years ago
Re: Understanding Tariffs - Standing charge

It’s simple arithmetic.

The standing charge is per day but the tariff rate is per KWHr.

Annual Total = (365 x standing charge) + (7111 x tariff rate)

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posted by Gillett | 3 years ago
Re: Understanding Tariffs - Standing charge
Yes I agree on the maths.

But comparing two tariffs (like in my example above) why then when the standing charge and unit rate are much higher than other tariffs but it shows the annual cost to be much lower. It doesn’t make sense how do I know what is correct??
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posted by  Eilidh | 3 years ago
Re: Understanding Tariffs - Standing charge

Hi @Gillett, we have designed different tariffs to typically suit high, medium and low energy users, to try to ensure you’ll get the best deal possible to suit your needs.

 In this instance, the 1 year tariff has a higher Daily Standing Charge (32.88p) with a lower unit rate (16.6p). This means you will be getting a better deal if you typically consume more energy throughout the day (we call this a typically high user), compared to the Help Beat Cancer Fixed Saver tariff mentioned here, which is more suited to our medium energy consumers. By offering a higher unit rate (18.3p), we have decreased the Daily Standing Charge (25.76p) in order to give those customers a better deal as they typically consume a little less energy throughout the day.

 We also have tariffs to suit our lowest consumers, which tends to have a lower Daily Standing Charge than our medium tariffs, as well as a higher unit rate.Essentially, regardless of how much energy your home uses, we have structured our tariffs to ensure there is one to suit you.

 It is worth pointing out that our Help Beat Cancer tariffs are always a little more expensive than our Online tariffs, because we lock in the price for two years instead of one. This means you don’t have to worry about switching or energy price rises for at least two years!

 

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posted by  Eilidh | 3 years ago
Re: Understanding Tariffs - Standing charge

Also, thanks @Ernie_C for your help!

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posted by 10bec1990 | A year ago
Re: Understanding Tariffs - Standing charge

AVOID THIS COMPANY

To be honest I would avoid this company and go somewhere else Bulb is really good where as Scottish power reckon I'm in £400 of debt (paid it off via a loan due to my heath).

I live in a one bedroom flat electric only and by myself, only thing on all and nightday is fridge freezer A+ rated everything else is unplugged, at night my alarm clock gets put on and phone and sometimes tablet on charge this is 10pm till 6am they then get turned off, my tv is rarely on to the point my friends didn't even think I had a tv same with my lights I tend to walk around in the dark and my boiler is on 3am till bout 6am I'm on a eco 7 meter. I've been keeping a close eye on my usage and in 24hrs which included the above plus a grill (20 mins) and actifry (15 mins) I have used 9kWh of electricity roughly £2 plus the service charge so that' £2.33 now in a month that' £65.24 roughly, I pay £50 a month (yes that is less then my usage but my usage varies my phone and alarm are not on every night, when I go on holiday the boiler is turned off sometimes I eat round a friends or have something cold sometimes my tv is turned on and I have a play on the play station) that comes to in the last 10 months £652.40 I've paid in £500 so yes I probably am in a small amount of debt maybe £200 so I increase my direct debit to £70 like I do and it soon goes back into credit, no way on this earth do I owe them £450 + i am disputing this and I am already in contact with trading standards and ofgem, since paying the amount I've moved to bulb who are 12p per kWh and 20 something pence standing charge. Thankyou if you have read all of this but avoid Scottish power 

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posted by lou679 | A year ago
Re: Understanding Tariffs - Standing charge
I live in a 2 bedroom ground floor flat woth my 2 children. We have panel heaters. This is my usage!!
I do believe my neighbour has hacked Into my electric metre
Has anyone got any advice please?
Thanks
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posted by Davc | A year ago
Re: Understanding Tariffs - Standing charge
There can be a lot of reasons for high bills. One is a sudden switch to actual readings after estimates. Electric heating is very expensive, always better to use gas.
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posted by lou679 | A year ago
Re: Understanding Tariffs - Standing charge
I’m in an all electric flat. Haven’t got gas at all
I’m out 4 days a week during the day 8-6 aswell
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posted by Davc | A year ago
Re: Understanding Tariffs - Standing charge

Hi Lou, check if your bills have been estimated, there will be an ‘e’ after the meter reading. If estimated put in an actual reading.