Understanding the Tariff Comparison Rate (TCR)
The Tariff Comparison Rate (TCR) helps you compare tariffs across energy suppliers. It's a bit like the Annual Percentage Rate (APR) you get with a loan or credit card. Because all suppliers work out TCRs in the same way, you know you're getting a clear comparison.
You should only use the TCR as a guide
The TCR is only a guide to help you compare tariffs. It isn't based on how much energy your home actually uses. You should be able to find how much you use on your bill, or by getting in touch with your supplier.
And if you want a personalised estimate for any of our current energy tariffs, use the link below to get a quick energy quote.
How to work out the TCR
The TCR is a single, pence-per-kWh figure. You can find the one for your tariff on your bill or your suppliers' website. The calculation works like this:
Tariff unit rate x yearly average energy used + a year’s standing charge – any tariff discounts + VAT ÷ average energy used.
Here's a breakdown to help explain it:
1. First we take the tariff unit rate (the pence-per-kWh figure of a tariff). You can find this on your bill or online.
2. We multiply this by the average energy used by a home per year. This is set by Ofgem as 3,100 kWh for electricity and 12,500 kWh for gas.
3. We add a year's standing charge. That's the daily standing charge for a tariff multiplied by 365 days. Again, this should be on your bill or online.
4. We take away any discounts that the tariff might have.
5. We add the VAT.
6. And finally, we divide this figure by the average energy used by a home per year, as shown at the start of the calculation.
This will give you the TCR for a tariff. It doesn't include any termination fees a tariff might have though, so bear this in mind when you're comparing tariffs.