Old Oct 27, 2007 | 06:37 PM
  #9  
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Chip
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Originally Posted by rapidcossie
look at it like a mobile phone contract...

with pay as you go there is no standing charge but calls and texts cost more.

With a contact you pay a monthly fee but calls and texts are alot cheaper.

Same with gas and electric.

You will have a lower unit rate beacuse you pay a standing charge...

Good analogy.

I know someone who swapped to a new provider with "no standing charge" but the effect was that his bills went up overall due to the price per unit.
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