Gas/Electric prices EON

[mustang]

I had cause to phone EON yesterday and as part of that call I inquired about changing from pre-paid meter to direct debit. Apart from the fact that they would charge me £50 to change each meter they also told me that it is cheaper for me to stay on pre-pay electric, (we didn't discuss gas prices) quoting the following:

Pre-pay electric meter

10.43p per unit plus £1.35pw standing charge

By DD

17.13p per unit with no standing charge

I'm confused now because everything I've read about pre-pay meters states that you pay a substantial premium. Can anyone clarify this for me please?

Thanks

[ozzywizard]

My guess is this is the primary unit charge. The first 225 units used in a quarter are charged at an higher rate then it drops to a much lower price per unit being the secondary rate. They have quoted you based on the primary rate. However if you are a very low user it can be cheaper on prepayment. This is because the prepayment price per unit (PPU) is cheaper than the primary unit so this justifies the standing charge as you would never benifit from the lower price of the secondary unit.

[mustang]

Thank you for your reply. What you say may well be the reason. This is a two bed flat and I am the sole occupant therefore the amount of electricity used may not be that much.

I suppose the best thing to do is wait until I've been here for a year and then have another look at the figures. I didn't move in until March and so the worst of the cold weather was over.

Oops, not concentrating. As it's gas CH the cold weather wont really affect the amount of electric used.

[ozzywizard]

You will use more electric in winter as the nights go longer and your lights are used more etc . . . do your own collection test. take a reading and read it again a week later, then x the differance by 52 giving you an average useage for the year add 5 per cent for extra useage in winter. The first 900 units are at a primary rate after this it is a lower rate. your prepayment tarrif is somwere in between these 2 rates, plus standing charge. If your using more than 1800 units then your better off on DD than prepayment. This is only a guideline, you need to check figures of PU etc and spend a bit of time on the maths.

[mustang]

Sorry for the late reply, I had trouble getting to the site.

I will do as you suggest and see how the figures turn out. If I have any problems with it perhaps you would be kind enough to have a quick look at them if I post again next week.

Thank you for taking the time to reply.

[ozzywizard]

Of course I will. no problem.

[mustang]

I've done some calculations and come up with the following:

Units used in one week 61, times 52 = 3172 + 5% = 3330. These are, as you say, only guideline figures but are well above 1800 units per year so it looks like I would be better off on DD.

I think what has happened with EONs figures is that they started from when I took the keys in Dec '07 but I did not actually move in until Mar '08 and with very little electric being used during those 3 months have skewed their figures wildly. Not their fault as they didn't know I wasn't living there.

Can you confirm that from my figures I would be better off on DD please?

Thank you.