Electric power key versus quarterly electric bills

[max_tranmere]

I have one of those key meters where you get the key charged up at a shop, I am sure some other people on this forum have one too as they are quite common, but I was amazed at how low someone told me their quarterly electric bill is - they dont have a key meter just get a bill posted to them every three months. Is this person just a low electricity user or it is really true what people say that the key meter thing is a rip off, much more expensive, and you actually do save a lot of money if they bill you quarterly? If so I intend getting rid of this key meter and start having quarterly bills instead in order to save money!

[Bob Singleton]

Key meters are more expensive than paying monthly or quarterly bills

[one eyed jack]

Yeah way more expensive. Someones driving around in a nice flashy motor because of the likes of you Mr Tranmere LOL

Get quarterly bills and spend your savings on porn. Live a little. Be happy!happy!

[Floydoid]

The cheapest way to pay for your electric and gas is to have both with the same supplier and on direct debit. Slightly more expensive is to pay by quarterly bill, and most expensive is by pre-payment meter.

[max_tranmere]

Thanks for the advice everyone. I have been looking into it this afternoon and have discovered the following:

If you have a key meter you pay 17.15 pence standing charge each day for having it (approximately ?15.43 a quarter). You pay no such thing with quarterly bills. For a key meter you pay 12.37 pence per unit during the day and 4.94 pence a unit at night. With quaterly bills you pay 21.42 pence per unit for the first 1000 units used in that quarter, then 13.02 pence a day for a day unit and 5.61 pence for a night unit. So it is more expensive to pay for a unit by having a quarterly bill than a key meter, but they charge you the standing charge each day for having a key meter so it balances out that way.

You pay VAT both on the key meter usage and on having a quaterly bill, and you save 6% off your bill if you pay by Direct Debit. The ?61 or ?62 annual standing charge (?15.43 a quarter) for having a key meter will not have to be paid if you have a qaurterly bill but your unit cost is higher if you do have the latter and apparently if you take that into account the bills are more or less that same. I was thinking of getting rid of the key meter and having quarterly bills or a Direct Debit but I see little point now.

[justincyder]

perhaps it depends on the individual company, but I've had both with the same company and quarterly was WAY cheaper than the key/card.

[Bob Singleton]

When my daughter was in her last year at Uni she was in a flat with a key meter. She's now in her own place (about 3 times the size) and using far more electricity than before but her monthly direct debit bills are about 75% of what she used to spend on far less electricity using a key.

I really can't see how you came to the conclusion that there's no difference (long term) between a key meter and a quarterly bill... unless you've got your figures wrong!