With so many different tariffs on offer from the energy companies today, it’s not easy to understand exactly how much you will pay for your electricity and electric heating.
Our own research has found that over 60% of the population could be paying up to 30% too much for their electricity, even though the market has now been regulated for over 10 years to provide a fairer deal for consumers.
It may surprise you to learn that using your regional electricity supplier could mean that your electricity bills will be higher than if you used a supplier from a different region.
This situation came about as a result of legislation passed over 10 years ago, preventing regional suppliers from competing on price in their own region. Regional suppliers can only compete on price in other regions of the country, in order to create a competitive environment for the energy market.
Three years ago, we measured our home at 8p per kWh over a full year. Energy prices later rose to 9.2p per kWh, but very quickly dropped to 7.3p around May 2010. During 2011 rates climbed to 9.5p and even touched 10p, however during February 2012 we have seen it drop back to hover around 10.5p to 11.5p
At Economy Radiators, we receive many calls from people who are finding it difficult to make sense of their electricity tariffs. So we’d like to help by explaining the facts behind some of the myths:
But first which of the following do you think is the best of these three tariffs?
|Economy 7 or 10||Standing Order||No Standing order|
|Option 1||Option 2||Option 3|
|Standing charge||£11.25 per month||£11.15 per month||NONE|
(0 to 7am)
|On peak||12p kwh|
|Rate 1||n/a||15p kwh first 900kw|
|Rate 2||8p kwh||8p kwh|
In Scotland this type of tariff may be known as ‘total heat total control’.
Be very wary of claims that these tariffs will save you money. Our research has found that customers on these tariffs will pay the same as, or sometimes even more than, customers on alternative tariffs.
This is because the on-peak price is inflated to cancel out the off-peak discount. The average of the on and off peak cost is designed to be, at best, the same as a normal tariff and, in some cases, could be much worse.