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Annual Usage Discrepancy

  • 11 March 2021
  • 9 replies
  • 119 views

Userlevel 1

HI. I'm comparing energy suppliers to save money due to the price increase.

 

However, the estimated annual usage I put in based from my last statement gives a different figure to those online. ie, if I look at My Current estimated cost in Change Tariff on the PP app it gives me £1,008.71. However, by using the figures on my statement, the online figures are essentially saysing it's higher than that. Can you give me the wattage figures you would use so I can get accurate comparisons please?

 

I have got the start and end figures between this year and last year, but the calculations on the statement say we can work it out ourselves but I have no idea what volume correction and calorific value is as it doesn’t tell me on the statement. Any help would be appreciated.

 

Thank you.

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Best answer by woz 11 March 2021, 22:02

@Ally72

hmmm….at the risk of sounding patronising, you’re slightly overthinking this here is why

The figure for your annual usage estimate is just that, an estimate, if over the year that you’re with PP you use less or more you’ll pay for less or more (eventually). Only the unit price is fixed, not the amount you would eventually pay (I say eventually because the DD will remain at the same value unless you use a lot more or less then it would be reviewed to be higher or lower - but your balance will fluctuate from month to month).

What’s important here is that when you compare quotes from anyone you must always use the same consumption, it doesn’t have to be exact. 

Neither is it necessary to do any calorific adjustment conversion, unless the only figures you have to go on is the volume of gas used over a year, in which case you would use an average calorific value (39.4 or 39.5 are my favourites) or better still use THIS 

The kWh figure you get will be near enough for your quote. (You’ll get far more variation in usage than the likely error the 2% variation in CV would give you)

Finally, if you find a difference in quote for the same figures and area it will be because some of the comparison deals have a slightly lower standing charge than going directly to PP (for example £5.50 a month compared to £6.67 a month) but (unless things have changed) you’ll find the unit prices are the same.
If you want to be on the safe side with no surprises when you get your quote us an annual figure 5 or 10% higher, or if you’d rather worry about it later use a slightly lower figure. Either way it will come right in the end.

Does that help at all?

Oh I forgot to add, if you’re using figures from previous bills the most accurate figure will be after you’ve been with a provider for a year. Imagine you joined a provider in April, and the annual was quoted after say 5 months, you’d show a hugely reduced estimate because you hadn’t been through the cold period yet. The energy co. doesn’t know how much you’re likely to use when it’s cold until you’ve been there.

 

 

 

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9 replies

Hi @Ally72 

The Pure Planet community has no access to account information, and “estimated annual usage” figures do vary as time moves on (they are calculated by an OFGEM formula, which among other things, takes usage to date, divides it by how long you’ve been a customer, then recalculates it to account for the time of year.)
So, when you see: ‘Forecasted Energy Cost’ - that’s not based on what you used over the last 12 months, it’s based on a projection of what you’re expected to use over the next 12 months (at least, that’s how I understand it.)


Volume correction and calorific value is worked out on a number of factors, including time of year, and where you live (As the pressure level increases so does the energy content; conversely, as the temperature increases, the energy content decreases, which I guess means you don’t want to live somewhere both high-up, and warm?)
A link to the site which lists the information energy providers use has been posted on this forum previously, however, I can’t remember where (even though I think it was me that posted it.) This is why most price comparison sites will request gas usage in kWh, the amount of gas you use to produce 1kWh alters during the year, but what you get out of that kWh is pretty much a ‘constant’ (for example, if your gas boiler is rated 28kWh, what you are charged for is 28kWh, not 2.43 cubic meters to 2.58 cubic meters of gas.)

In theory at least, provided you compare like with like in a comparison site, what Pure Planet’s ‘estimated cost’ listed in your statement is should not matter:

If you put for example 5000kWh of electricity, and 12,000 kWh of gas into a price comparison site as your annual consumption, those comparisons between different companies will provide a reasonably accurate idea of price differentials.

The fact that Pure Planet, having more accurate info regarding your next 12 months estimated usage (for example 5515 kWh, and 12,371 kWh) makes no difference to the value of the comparison.


Kindest Regards

Gwyndy

Userlevel 7
Badge +8

@Ally72 

In addition to @Gwyndy's  excellent answer, the formula used for conversion of gas consumption us shown on page 2 of your statement under the tariff information section

Userlevel 7
Badge +9

According to MSE this week, Pure Planet has currently the cheapest energy offer apart from one new and relatively unknown company.

Stephen

Userlevel 1

Thanks all. @Duppy  - I can only see the tariff calculations that I mentioned in my query that without volume correction etc, I can’t work out. What am I missing?

 

Thanks @stephenrand - I did a comparison on MSE and this didn’t come up. I’ll have another look.

 

Thanks @Gwyndy - that makes sense.

Userlevel 7
Badge +8

@Ally72 

In this screenshot of my statement it gives  an example of the calculation using 1.02364 as a volume correction

 

Userlevel 7
Badge +9

Hi @Ally72

Here’s the MSE info

MSE Big Switch winner

Ends Fri. Pure Planet 1yr fix, market's cheapest tariff with good feedback. Avg price: £915/yr on typical use. Service rating: 3.8/5 (good). Save: £223/yr. Only 5,300 left.

The Pure Planet 100% Green 12m Fixed Mar21 v1 tariff is a version of its standard 12mth fix - which it has just lowered the price of. Yet we've got it to add £20 dual-fuel (£10 elec-only) bill credit, on top of our usual £25 dual-fuel (£12.50 elec-only) MSE cashback. Include all that in the price, and it's the cheapest deal on the market, with one exception...


Stephen

 

Userlevel 7
Badge +11

@Ally72

hmmm….at the risk of sounding patronising, you’re slightly overthinking this here is why

The figure for your annual usage estimate is just that, an estimate, if over the year that you’re with PP you use less or more you’ll pay for less or more (eventually). Only the unit price is fixed, not the amount you would eventually pay (I say eventually because the DD will remain at the same value unless you use a lot more or less then it would be reviewed to be higher or lower - but your balance will fluctuate from month to month).

What’s important here is that when you compare quotes from anyone you must always use the same consumption, it doesn’t have to be exact. 

Neither is it necessary to do any calorific adjustment conversion, unless the only figures you have to go on is the volume of gas used over a year, in which case you would use an average calorific value (39.4 or 39.5 are my favourites) or better still use THIS 

The kWh figure you get will be near enough for your quote. (You’ll get far more variation in usage than the likely error the 2% variation in CV would give you)

Finally, if you find a difference in quote for the same figures and area it will be because some of the comparison deals have a slightly lower standing charge than going directly to PP (for example £5.50 a month compared to £6.67 a month) but (unless things have changed) you’ll find the unit prices are the same.
If you want to be on the safe side with no surprises when you get your quote us an annual figure 5 or 10% higher, or if you’d rather worry about it later use a slightly lower figure. Either way it will come right in the end.

Does that help at all?

Oh I forgot to add, if you’re using figures from previous bills the most accurate figure will be after you’ve been with a provider for a year. Imagine you joined a provider in April, and the annual was quoted after say 5 months, you’d show a hugely reduced estimate because you hadn’t been through the cold period yet. The energy co. doesn’t know how much you’re likely to use when it’s cold until you’ve been there.

 

 

 

Userlevel 1

@Ally72

In this screenshot of my statement it gives  an example of the calculation using 1.02364 as a volume correction

 

@Duppy thank you. It wasn’t clear to me what the figures were in relation to as there was no explanation.

Userlevel 1

@Ally72

hmmm….at the risk of sounding patronising, you’re slightly overthinking this here is why

The figure for your annual usage estimate is just that, an estimate, if over the year that you’re with PP you use less or more you’ll pay for less or more (eventually). Only the unit price is fixed, not the amount you would eventually pay (I say eventually because the DD will remain at the same value unless you use a lot more or less then it would be reviewed to be higher or lower - but your balance will fluctuate from month to month).

What’s important here is that when you compare quotes from anyone you must always use the same consumption, it doesn’t have to be exact. 

Neither is it necessary to do any calorific adjustment conversion, unless the only figures you have to go on is the volume of gas used over a year, in which case you would use an average calorific value (39.4 or 39.5 are my favourites) or better still use THIS 

The kWh figure you get will be near enough for your quote. (You’ll get far more variation in usage than the likely error the 2% variation in CV would give you)

Finally, if you find a difference in quote for the same figures and area it will be because some of the comparison deals have a slightly lower standing charge than going directly to PP (for example £5.50 a month compared to £6.67 a month) but (unless things have changed) you’ll find the unit prices are the same.
If you want to be on the safe side with no surprises when you get your quote us an annual figure 5 or 10% higher, or if you’d rather worry about it later use a slightly lower figure. Either way it will come right in the end.

Does that help at all?

Oh I forgot to add, if you’re using figures from previous bills the most accurate figure will be after you’ve been with a provider for a year. Imagine you joined a provider in April, and the annual was quoted after say 5 months, you’d show a hugely reduced estimate because you hadn’t been through the cold period yet. The energy co. doesn’t know how much you’re likely to use when it’s cold until you’ve been there.

 

 

 


Thank you - that makes a lot of sense. (I have been with PP for probably 2 years so estimates should be  pretty accurate).

 

Thanks all - really helpful.  :)

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