Understanding your tariff

Tariff Comparison Rates

What is the Tariff Comparison Rate?

The Tariff Comparison Rate (TCR) is a single unit price rate that people can use as a guide to compare tariffs. There is one TCR for each tariff on the market. It’s probably best described as similar to the annual percentage rate (APR) that you would use to compare the cost of borrowing.

All of our bills and annual statements will contain a TCR that takes into account the tariff price, tie-ins, discounts, exemptions and bundled products.

Based on ‘average’ not ‘actual’ consumption

The TCR sets out the unit price (as pence per kWh) with a typical annual electricity consumption of 3,200 kWh or a typical annual gas consumption of 13,500 as defined by Ofgem.

How the TCR is calculated

Single fuel — Electricity or Gas

  1. Multiply our unit rate by Ofgem’s average consumption figures — 3,200 kWh for electricity and 13,500 kWh for gas
  2. Add a year’s standing charge
  3. Add VAT
  4. Divide this figure by 3,200 to give the pence per kWh

Dual fuel

  1. Multiply our unit rate by Ofgem’s average consumption figures — 3,200 kWh for electricity and 13,500 kWh for gas.
  2. Add a year’s standing charge
  3. Add VAT
  4. Subtract the annual dual fuel discount from your gas tariff if you’re a dual fuel customer
  5. Divide this figure by Ofgem’s average consumption figure, in order to give the pence per kW

Tariff Information Labels (TILs)

Tariff Information Labels (or TILs) were introduced by Ofgem in 2014 to make sure you have everything you need to understand the plan you’re on, and to allow you to compare prices.

The TIL also includes a Tariff Comparison Rate (TCR), which helps you compare our prices against other suppliers on a like-for-like basis. It shows a breakdown of what the average medium user spends, based on the tariff you’ve chosen.

Read more about Tariff Information Labels.

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