Right peeps, after spending the last four hours in online price comparison sites and on the phone to a number of supliers I think we'll all be very suprised at how the figures work out - even the gas companies were!
We've based our anual usage at 17550KWh which is probable about 10% higher than actual. We first compaired prices for that usage on monthly bill then we did the same for prepayment to find the cheepest supplier for both.
The cheepest via monthly bill worked out at £706.72 per year with EBICo
The cheepest via prepayment worked out at £707.89 per year with EBICo
A massive saving of £1.17 PER YEAR for changing from prepay to credit meter
I knew there wouldn't be a huge difference but I was shocked at how little difference there actually is. I guess some of you might be thinking that's all BS but let me try to explain why it works out like this. On a prepayment meter you have a daily standing charge and a low fixed cost per KWh. On a regular credit meter there are usually 2 rates per KWh, one very high rate upto the first 1000KWh (ish) per quarter and then a lower rate (only slightly lower than prepay) for the remaining usage in that quarter.
Now, even though we'd have no standing charges on monthly billing, our usage is such that we would not spend enough time in the lower rate so there is less of a saving to be had. I hope to god this makes sense to everyone cuz I'm confusing myself now.
But when it all boils down to it, we're no worse off using the prepay meter than we would be on a credit meter - infact as I mentioned before, we are more careful and aware of our usage whilst on prepay so as I was trying to point our we're financially better off this way. The only downside is when the meter f*ck up and we're left with no juice - like now
Hopefully this might slightly dilute the old urban myth about massive savings by ditching prepay.
Matt