Gas-Only Deals

Understanding your gas-only usage

When you have a gas-only plan, your bill reflects the total amount of gas you consume within a billing period, along with the applicable tariffs and fees. Here’s a breakdown of how your usage impacts your bill:

Gas Consumption

• Measured in kWh: Your gas usage is measured in kilowatt-hours (kWh). This is the unit of measurement for gas consumption.
• Meter Readings: Your gas meter records the amount of gas used. Regular readings ensure accurate billing.
• Smart Meters: If you have a smart meter, it automatically sends real-time usage data to your supplier, leading to more precise bills.

Additional Charges

• Standing Charge: This daily fixed charge covers the cost of maintaining the gas supply to your home. It’s included in your bill regardless of how much gas you use.
• VAT: In the UK, Value-Added Tax (VAT) at a rate of 5% is applied to domestic gas bills.

Why opt for a gas-only deal

Looking for a great gas-only deal in 2024? Top gas suppliers like British Gas and Shell Energy offer fantastic gas-only plans with competitive prices and flexible tariffs. For example, Shell Energy’s Flexible Plan is perfect for those wanting flexibility and no exit fees, allowing you to benefit from lower gas costs without being tied down.

These gas-only deals are especially beneficial in the UK, where gas prices can vary. By focusing solely on your gas plan, you can manage your gas costs more effectively, avoiding the extra charges that come with dual-fuel deals.

Gas-only tariffs explained

When choosing a gas-only deal, understanding the different types of tariffs available can help you find the best option for your needs. Here are the main types of gas tariffs:

• Fixed-Rate Tariffs: These tariffs lock in your gas prices for a set period, usually 12, 18, or 24 months. They provide stability and protect you from price increases during the contract period. For example, British Gas offers fixed-rate plans that ensure consistent gas costs.
• Variable-Rate Tariffs: The price you pay for gas can go up or down depending on market conditions. This type of tariff offers flexibility but comes with the risk of price increases. Shell Energy’s Flexible Plan is a popular variable-rate option that adjusts prices based on market changes.
• Prepayment Tariffs: Also known as pay-as-you-go tariffs, these require you to pay for your gas in advance using a meter. They offer more control over your spending but can sometimes be more expensive than other options.

Understanding Your Bill

• Itemised Usage: Your bill will detail the number of kWh used, the rate applied, and the period covered.
• Total Cost: This includes the total kWh multiplied by your tariff rate, standing charge, and VAT.
• Energy Efficiency: By understanding your usage patterns, you can identify ways to reduce consumption, such as using energy-efficient appliances or optimizing your heating schedule.

Let’s say you’re on a fixed-rate tariff at 5p per kWh with a standing charge of 15p per day. If you use 500 kWh in a month:

• Usage Cost: 500 kWh * 5p = £25
• Standing Charge: 15p/day * 30 days = £4.50
• Total Before VAT: £29.50
• VAT (5%): £29.50 * 0.05 = £1.48