Utilities Guide
Gas and electricity rates are the prices the energy companies charge their customers for supply of gas and electricity to their properties. They are calculated on the individual needs of the customer and take into consideration the type of contract and type of customer. Other fees factored into the customer's bill cover the level of consumption, the individual customer's rate, VAT and any other applicable charges.
Here are a few details about available tariffs on the current market.
Two-tier system - Where a consumer pays more for the first used units of energy and less for the remainder. Often a two-tier system exists when a property is connected to the gas or electricity network and there is no standing charge or fixed fee.
Standard tariffs - A variable option which means that price per unit will fluctuate. Customers will be placed on a standard tariff if they have not selected an alternative option. Bills will vary from month to month.
Online tariffs - An internet managed tariff often offering discounted rates, paperless bills and direct debit payments.
Fixed - A fixed tariff means that the price will be fixed for a certain period of time as agreed in a contract. If the prices of energy rise the unit rates will remain as agreed. However, if the prices of energy drop, the customer will not be able benefit.
Capped - A capped tariff allows a customer to sign up for a variable rate over a period of time that will not exceed a certain level.
Both fixed and capped will automatically move to a standard tariff once the contract ends.
Pre-payment meters - Allow the customer to manage their own usage of energy through a pay as you go key, card or token.
Paying for gas and electricity
There are many ways in which customers can pay for their energy bills from the traditional methods of cash, cheque and standing order to credit or debit card and prepayment meter. If you are flexible with your method of payment it is worth investigating if your supplier offers any further discounts for paying through a certain method like direct debit.
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