Tariff Comparison Rates Explained

Strap yourself in for what promises to be the most exciting Fischer Energy blog yet. Ok, maybe not but while we can’t claim it to be the sexiest of blog subjects, getting to know the ins-and-outs of the Tariff Comparison Rate (TCR) is a great way for you to compare supplier’s prices if you’re looking to switch.

 

Why?

The TCR was designed to try and help clear things up for energy shoppers. With so many tariffs (One Fair Tariff aside), complex discounts structures, sign-up offers and rewards packages, it was anything but easy to find out if you were getting a good deal or not. The TCR creates a level playing field amongst suppliers. It isn’t an actual price but it is a good guideline to go on.

So, what is it?

The TCR will appear somewhere on an energy bill. All suppliers must include it as a price comparison tool for all energy customers. Think of it like the APR on a credit card or when you take out a loan.

Basically the TCR breaks down the price of energy by adding-up everything that goes into the cost of an energy tariff. So, that can be the unit rates, standing charges and VAT. This figure is then divided by the average annual consumption published by the energy regulator Ofgem and creates a price per kWh. Simple.

Here’s a little infographic that breaks everything down for you.

TCR = unit rate * aec + annual standing charge + VAT / AEC

Remember the price given is not the actual price you pay for your energy. So be careful you don’t confuse the quoted price per kWh with the TCR when comparing supplier’s prices.

If you are looking to switch it’s always good to note that price, while important isn’t everything. Before switching, check out a supplier’s customer service record. Having a quick look on a company’s social media is a good way to see how happy, or not customers are.

 

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