In 2014, Ofgem came up with a tool that helps customers to get a better understanding of the UK energy market. Called TCR (Tariff Comparison Rate), this was a method that gives you an insight to choose a particular tariff and whether it would be beneficial for you or not.
Tariff Comparison Rate is defined as the standard rate through which one can compare one tariff against another. In literal terms, it is the cost that a consumer pays per kWh on a tariff. It is the total amount of energy used during that year on a specific tariff divided by the energy used by a medium user. Now, a medium user is defined as the household that uses 12,500 kWhs of gas and 3,100 kWhs of electricity in a year. TCR also includes the kWh of energy consumption plus unit rate and standing charges.
This is not the actual price as the price will depend on the total usage of energy. The TCR can be found on all energy bills and it is given with respect to your current tariff. It varies with region, fuel type and mode of payment of energy bill. It can act as guidance and not the exact price but proves to be very efficient in comparing tariffs and deciding which one will prove affordable for you. Please note that it is not available for people who use Economy 7 or Economy 10 meters.
You can check it on your energy bill and even on the annual energy statement. The main use of TCR is to compare it with another TCR so that you can find which plan is beneficial for you. However, this is not the actual price and so only indicates the affordability of a particular plan over another but does not give actual price comparison. For this, you can take help of a free, transparent comparison site like freepricecompare.com.
For more details, go through our website, guides and comparison tool. For one to one consultation, we can be contacted on 02034757476.
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