Your Personal Projection is your forecast energy cost for the next 12 months. It assumes you do not change or renew your energy tariff over this period, you use the same amount of energy as you did last year taking into account any meter readings you have given us and includes any discounts or charges that may apply (like VAT).
Your Personal Projection is just an estimate and does not include any credit / debit balance you may have on your account.
If you are on a tariff that is due to end in the next 12 months we are required to assume that you will move onto our So Out of Contract tariff (our Variable tariff) when your current tariff expires. So if your current tariff expires in 3 months, your calculation will be based on 3 months on your existing tariff and 9 months (the remaining time) on our So Out of Contract tariff.
Assuming that your estimated electricity usage is 2,500 and gas 14,000 kWh, So Aardvark tariff rates are (gas unit rate 3.00p/kWh, electricity unit rate 10.00p/kWh, Standing charge for both is 18.00p/day) and So Out of Contract tariff rates are (gas unit rate 3.50p/kWh, electricity unit rate 11.00p/kWh, Standing charge for both is 18.00p/day)
To calculate your Personal Projection:
Forecast electricity costs 3 months on So Aardvark tariff = (2,500 x 3/12) x 10.00p + (365 x 3/12) x 18.00p = £78.93
Forecast electricity costs 9 months on So Out of Contract tariff = (2,500 x 9/12)x 11.00p + (365 x 9/12) x 18.00p = £255.53
Forecast gas costs 3 months on So Aardvark tariff = (14,000 x 9/12) x 3.00p + (365 x 3/12) x 18.00p = £121.43
Forecast gas costs 9 months on So Out of Contract tariff = (14,000 x 9/12) x 3.50p + (365 x 9/12) x 18.00p = £416.78
Personal Projection (i.e. total costs forecast for the next 12 months) = £78.93 + £255.53 + £121.43 + £416.78 = £872.67
Ofgem requires us to tell you if we have another equivalent tariff (i.e. a 12 month fixed for another 12 month fixed) that’s cheaper than the one you’re on. You’ll see it on ‘Could you pay less’ section on the first page of your monthly statement.
The way we compare tariffs is by taking your Personal Projection (per fuel) and compare it to the 12 month costs on our latest tariffs. If the new tariff costs are less than your Personal Projection, we'll tell you and by how much.
Using the example above, and our latest tariff rates (gas unit rate 2.50p/kWh, electricity unit rate 9.50p/kWh, Standing charge for both is 18.50p/day)
Personal Projection cost for electricity = £78.93 + £255.53 = £334.46
Forecast cost for electricity on the new tariff = 2,500 x 9.50p + 365 x 18.50p = £305.03
The amount we would show you saving by switching your electricity tariff is = £334.46 - £305.03 = £29.44
Personal Projection cost for gas = £121.43 + £416.78 = £538.21
Forecast cost for electricity on the new tariff = 14,000 x 2.50p + 365 x 18.50p = £417.53
The amount we would show you saving by switching your gas tariff is = £538.21 - £417.53 = £120.69