TCR is a way to compare Home Bulk Tank LPG prices (tariffs) across multiple LPG suppliers that takes into account factors a straight Pence Per Litre rate doesn’t, including standing charges, Free Gas and other discounts, ensuring that you always get the best possible rate for your Home Bulk Tank LPG usage. This is not the actual rate you will pay. It is for guidance only, and based on your estimated consumption figures only.
How to calculate TCR for LPG.
To calculate your Year 1 and Year 2 TCR your must know all of the variables applicable to your Domestic Home Bulk Tank LPG ‘Supply Agreement’, including your ‘estimated’ annual usage.
As an example, and as applied to an Industry Standard ‘Two Year’ Domestic LPG Supply Agreement:
Estimated Annual Usage: 5000 litres pa
Year 1 LPG Price: 34ppl, Fixed for 12 month (+vat @ 5%)
Year 2 Price Cap: 5.0ppl Year 2 Price cap
Gas Credit (FREE LPG GAS) : £100.00
Standing Charge / Tank Rental @ £60pa (16.4p per day) – Above Ground LPG Tank
In this scenario the Year 1 TCR would be 34.2p per litre + VAT @ 5% with a Year 2 TCR of ‘no more than’ 39.2p per litre.
Your Year 1 TCR is calculated by multiplying your estimated annual usage by your pence per litre LPG price. You then just need to add the annual Standing Charge and deduct 50% of any Free Gas or other incentives offered. When you then divide this figure by your estimated annual usage (the number you started with) you will get an indication of your Year 1 TCR for your Domestic Home Bulk Tank LPG.
If, and as in the example above, you have a ‘Price Cap’ or ‘Price Guarantee’ then this can simply be used to calculate your Year 2 TCR.