What is a Tariff Information Label (TIL)?
Tariff Information Labels (TILs) offer a simple breakdown of the key details relating to energy tariffs for gas and electricity. The TIL for your gas and electricity tariffs will be printed on the annual statements provided by your energy suppliers, as well as on your monthly energy bills, and your energy providers’ website.
Why were Tariff Information Labels introduced?
TILs were introduced by Ofgem, the energy regulator, to give consumers easy access to key information about their current energy tariffs.
The idea behind the TIL scheme is that having access to this information helps develop consumers’ understanding of the retail energy market and encourages more people to compare the market and make more informed decisions about their choice of energy providers. And when this information is visible in a standardised format that consumers can get used to, this extra knowledge helps build confidence when comparing home energy deals.
Tariff Information Labels contain very generic tariff data, which combines the costs of a tariff into one simple pence per kWh figure, and so should only be used for reference before you compare tariffs online to get a personalised quote that suits your exact needs.
What is TIL information?
Each Tariff Information Label will include the following information, as shown in the example below:
- Supplier name - e.g. Ovo Energy
- Tariff name - the official name of your tariff, e.g. Better Energy Fixed (Online)
- Tariff type - e.g. fixed or variable. The example below is a fixed rate tariff
- Payment method – how you regularly pay your bills e.g. Direct Debit
- Unit rate – measured per kWh, this is the price you pay for the energy you use
- Standing charge - this is a daily fixed rate to cover the cost providing your energy supply, such as meter readings and maintenance. No standing charge tariffs are available.
- Tariff end date – the date your current deal ends. You need to switch before this date to avoid being placed on a more expensive standard variable rate tariff.
- Price guarantee – the date until which the price you’re currently paying is guaranteed
- Exit fees – some suppliers charge a penalty fee if you switch from their tariff a certain amount of time before its official end date
- Additional products and services - e.g. loyalty points.
Details will also be displayed on the estimated energy use for a typical household on the same tariff, for low, medium and high energy users, including:
- Assumed annual consumption
- Estimated annual cost
- Estimated monthly cost
- Tariff Comparison Rate
How are Tariff Information Labels useful?
By reading the TIL on your energy bill, you can see exactly how they are calculated on a monthly and annual basis.
This allows you to conveniently assess your current tariff and work out how it compares with others on the market, and ensure you are benefitting from the most competitive rates available.
As your TIL will provide details of your current tariff’s end date and any applicable exit fees on your monthly bills, you can also use this information as a reminder when you are coming to the end of your tariff or are considering switching your provider.
And remember, you don’t have to wait until your current tariff is about to end before switching, even if the deal is loaded with exit fees. You can make the switch from any tariff, and not be charged a penny in exit fees, if you switch within 49 days of your current deal’s end date.
If you have any questions about how you can use the information on your Tariff Information Label or would like to see how UKPower could help you switch your energy provider, call 0800 320 2000 to speak to one of our experts.