comparison

6 Nov

london 9.15am friday

i often see rate comparison articles saying u can get good deals if u switch. and today i saw this gb enegy supply offering 10.05p /kwh. that is very good but when i got a quote from them, it turned out that there is a standing charge of 19.4p a day. well that knocked all the saving out of kilter. i use about 2.4kwh/day x.1667p = 40p . their cost would be 2.4 x .10p = 24 + 19.4=43.4p. it will cost more than my present deal with npower. for low use people like me, the fixed standing charge is a killer. npower have no standing charge.

if u use a lot, say double my usage it turns out much better . standing charges benefit those who use a lot of energy. 5x.1667=83p. 5x.1=50+19.4= 69.4p

if u use 3x as much as me, 7.5x.1667 = £1.25p on npower . 7.5x.1= 75p +19.4 = 91.4p on gbgeneral. so u can see changing suppliers to a lower tarif will encourage people to use more, as there are more savings the more u use. and less savings the less you use. human nature being what it is, a person will feel he is penalised for saving … there is no incentive to save electricity and cut down on usage.

that is why i am not sure that lowering the price of electricity will help save electricity. it will just mean people using more as it will be cheaper and it will do away with the incentive to use less electricity.

if u use more than 20kwh a day u will get the full benefit and pay just 10.5p/kwh. but who are the kind of people who would use more than 20kwh a day? maybe those who grow marijuana, haha.

ELECTRICITY
Unit Rate (p/kWh) 10.0275p
Standing Charge (p/Day) 19.425p
Tariff Comparison Rate (TCR) 12.31p
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