Ofgem introduced a Tariff Comparison Rate (TCR) as part of their Retail Market Review. The TCR is a single unit price that can be used as a guide to compare tariffs. It's probably best thought of as similar to the Annual Percentage Rate (APR) the financial industry has used for many years.
Based on 'average' not 'actual' consumption
The tariff comparison rate sets out the unit price (as pence per kWh) with a typical annual gas consumption as defined by Ofgem. But obviously the amount you pay for your energy depends on how much you use. For this reason it's important to remember the TCR is intended to help you compare energy suppliers on a like for like basis – it's just a guide and won't give you a specific price and it doesn't take the quality of a supplier's customer service into consideration.
How to find our Tariff Comparison Rates?
Due to our tariff prices being different depending upon your postcode we display the TCR alongside your personal quote projection.
How the TCR is calculated
Our worked example of a TCR is for a tariff with the following features (usage of 13500 kWh per year):
- 1 year fixed term gas tariff.
- Standing charge: 10 p/day.
- Unit rate: 2 p/kWh.
- Termination fee of £30.
|Fuel||Tariff Name||Type Of Tariff||Payment Method||Standing Charge (p/day)||Unit Rate (p/kWh)|
|Gas||Mercury 12||Fixed Term||Direct Debit||10||2|
|TCR Calculation||TCR = ((10*365) + (2*13500)) / 13500 = 2.27 p/kWh|