Gas & Electric standing charges

Last post Tue, Mar 13 2012, 12:44 AM by PauLLLM. 2 replies.
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  •  Tue, Mar 13 2012, 12:44 AM

    Re: Gas & Electric standing charges

    It tends to be because the unit rates are a lot lower than a tariff without standing charges.

    Here's a comparison:

    Tariff without standing charge - First 2 units per day are charged at 20p, follow-on units are charged at 15.

    Tariff with standing charge - 35p standing charge per day, regardless of use, but a 10p unit rate.

    To make a saving with a tariff with a standing charge, you need to save more than the standing charge in the difference in the unit rates. So with this comparison, you'd need to use 5 units per day to break even and any more is just more money saved.

    Most households would benefit from the tariff with the standing charge.
    • Post Points: 5
  •  Thu, Mar 08 2012, 8:59 PM

    Re: Gas & Electric standing charges

    fairywings:Is it cheaper to have the standing charge or not?

    It depends how much power you use. If you don't use very much, you'd be better without a standing charge. Often, those that don't have a standing charge use a higher rate for the first few hundred units that you use each year. If you put your usage into the calculaion tool, it should take standing charges into account.

    • Post Points: 20
  •  Thu, Mar 08 2012, 4:01 PM

    Gas & Electric standing charges

    At present I am with Scottish Power with no standing charges. I am confused as to why some companies on comparison websites have standing charges and some do not. What is the difference? Is it cheaper to have the standing charge or not? I will be grateful for any help out there. Thanks.
    • Post Points: 20