- What's a Tariff Comparison Rate (TCR) and how is it calculated?
A Tariff Comparison Rate (TCR) is a quick way to compare prices between different tariffs, either with the same supplier or with a different one. It allows you to compare one tariff against another at OFGEM's typical consumption levels (currently 3,100 kWh for electricity and 12,500 kWh for gas).
A TCR is a pence per kWh, or pence per unit figure, which blends all of the unit rates, standing charges, discounts and VAT. If you use more or less than the typical OFGEM figures, then it may be worthwhile looking at the individual unit rates, standing charges and discounts of the tariffs you are interested in. So if tariff A has a TCR of 15p per unit and tariff B has one of 14 p per unit, then tariff B is cheaper at typical consumption levels.
You may find some tariffs with slightly higher standing charges (the part of the tariff you need to pay whether you consume energy or not), but lower unit rates. For a higher consuming customer these could still represent better value, but if you were to just use the TCR, the tariff may appear to be more expensive. As such, we'd always recommend looking at all elements of the tariff to make sure it's right for your personal circumstances.