UNDERSTANDING YOUR ELECTRIC TARIFF

We produced this document to cope with the incredible levels of misunderstanding people have about electricity and the price you pay.

Be in no doubt well in excess of 50% of the population will pay 30% too much for their electric --- even after the market was regulated to break up the monopoly's of the regional suppliers --- well over 10 years ago!

Unlike other suppliers who do not take the time to provide quality advice, we want you to have the best possible experience.

Regional suppliers

If you use your regional supplier you will be automatically 30% higher in price than if you moved away to a supplier outside of your region. Why? Because the government over 10 years ago passed a law to ensure regional suppliers cannot compete in their region and can only compete outside of their own regions, thus making a competitive market.

Best Market Rates

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 as we speak August 2010 it is back around 8p per kwh.

I get many calls from confused people so hopefully I can help with some of the myths explained:-

But first which of the following do you think is the best of these 3 tariffs?

• Answer is Option 3 --- why? Well you are actually getting 900kw for free, but also economy 7 or 10 is NEVER a good idea (see later).
• Many suppliers give a better rate online than they do over the phone, so use comparison websites such as:-
• www.ukpower.co.uk or similar comparison sites but do look behind the figures.
• do not be fooled by "no standing charge" (basically the charge you get for having the luxury of a meter and electric into your home), if they do not charge a standing charge they will simply take that charge and convert it into units i.e.; Rate 1 = 15p kwh Rate 2 = 8p after 900 kw

What they mean is 900 units over a year charged at 15p. Or to put it another way a standing charge of £11.25 per month would be exactly the same. So they have charged you a standing charge but simply disguised it. BUT you do get effectively 900 free units over the year compared to other three tariffs.

The important bit is making sure rate 2 is around 8p which is your target to achieve or indeed beat this rate.

Economy 7 or 10 (off peak / on peak)

In Scotland this may be known as "total heat total control".

Be under no illusion whatsoever this is a "mathematical sleight of hand", you will NOT save money using these types of tariffs.

Anyone advising you of such has failed junior school mathematics!

The on peak price is simply over inflated to steal back what they have given to you for the off peak. The average of the on and off peak is designed to be at best, the same as a normal tariff and sadly usually worse.

Don't believe me? Then introduce me to a charitable electricity company or perhaps more scientifically add up all your units both on and off peak take the total bill value and you can work out the average you have paid.

If that average is higher than 8p kwh then whoops, you have just been robbed.

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