Calculate how much you would spend on a new energy deal
This useful guide shows you how to calculate your annual spend on a new energy deal to check if you’ll be saving on your power bill after you switch.
Know how much you are likely to spend when you move to a new deal.
Once you’ve collected a list of energy deals that you may want to switch to, it would be worth knowing what your annual spend would be if you move.
You can then compare these deals to your current deal to work out if you would save money by switching.
Doing the calculation
You need to know a few things in order to do this calculation:
- What tariff type am I on?
- What are the Usage charges, Supply charges and Discounts on the deals I am considering?
- How much electricity am I likely to use over the course of a year?
Lets discuss each one of these in detail
Knowing what tariff type (i.e. Single rate or Time of Use) you are on is important as it helps you filter out the deals that are not applicable to you.
Usage charges, Supply charges and Discounts
If you are using the Energy Made Easy (“EME”) website you can view the standardised terms and conditions by selecting the pdf displayed for each deal.
If you use the Handled app, we display key terms in the “What you should know” of a selected deal and if you would like to investigate further, you can select the “Price fact sheet” link to view full details.
For group discounts, these details can only be found in the Handled app.
How much electricity will I use?
The easiest way to estimate how much you will use, would be to take your bill as a starting point, divide by the number of days and then multiply by 365.
I have usage of 1,920 kWh during a bill period that was 92 days long.
I would estimate usage of 7,617 kWh per year (1,920 / 92 x 365)
If I was on a time of use plan, I could use the % split from my current bill to estimate my annual split too.
I used 50% shoulder, 30% peak and 20% off peak electricity.
I would estimate my annual numbers to be 3,809 ; 2,285 ; 1,523 respectively
Both EME as well as the Handled app use predictive modelling to do a more accurate forecast of your usage.
Handled takes the scenario of having Solar and/or battery storage into account that is currently not done by EME.
Ok, so the next step is to work out your hypothetical cost of switching to a new deal.
We need to add up the following:
- Supply charge x 365
- Usage charges x estimated annual usage
- Less: Discount % x usage/supply charges
If you’ve worked through all the deals on a spreadsheet, well done!
EME will display how much you would pay on all relevant deals, having done this calc for you, however, they will not be able to show you your current spend and saving.
They will also not be able to show you the group discounts that Handled has secured on your behalf.
Get it handled
If you’d like to save yourself the trouble of doing this yourself and would like a better service than the government website, at no cost, download our Handled app today and give it a try!