Comparing Residual and Tariff Gas Providers

Gas providers offer two primary forms of billing - residual and tariff. Understanding the similarities and differences between these two billing methods can help consumers make more informed decisions about their energy consumption and bill payments.

Understanding Residual Gas Providers

Residual gas providers generally work on a pay-as-you-go system. Customers pay for the gas they use on a weekly or monthly basis as measured by a gas meter. This meter is usually fitted in the customer’s home or premises. The rates that residual gas providers charge are usually higher than the rates charged by tariff providers because they offer more flexibility and convenience, requiring no contract or other long-term commitment.

Understanding Tariff Gas Providers

Tariff gas providers operate on a fixed, contract-based system. The supplier sets out a rate that applies to a specified period, usually a year, and customers pay that rate for the duration of their contract. Tariff providers generally offer lower rates than residual providers because they expect customers to commit to the service for longer periods of time.

Comparing Residual and Tariff Gas Providers

Comparing residual and tariff gas providers requires understanding the individual’s energy needs and lifestyle. For customers that value flexibility and only want to pay for what they use, residual gas providers may be the better option. However, if a consumer wants to lock in a lower, fixed rate for a specified period, tariff gas providers may provide the best solution.