Not So Economy 7

gboo

I switched to British gas 2010 guarantee rates when it first came out and pleased to have done so. But last year I noticed that although we had Economy 7 and therefore a night time tarrif which is 1.819p per unit I was being charged the standard rate of 13.078p for the first 293kw and then 6.678p for the remainder. At first I was quite cross about this and thought, before being Mr Angry on the phone i would see how much I was being overcharged. Well, surprise surprise, it was about £6 cheaper on the standard rate than it was on economy 7. Based on around 1200 kw over 119 day period with a night rate of 223kw.

So is Economy 7 a bit of a con of me 7?

The standard rate is much more expensive - but night time rate much cheaper. Unless you are using a high proportion of nightime rate ie you still have night storage heaters, it could be cheaper to have it at the standard rate.- So if you used to have night storage heaters and had had them removed but kept the economy 7 rate meterit is worth checking which would be cheaper.

spiro

gboo wrote: »

Based on around 1200 kw over 119 day period with a night rate of 223kw.

If you are saying your total consumption is 1200kw of which 223kw is night or even if you are saying 1200kw day and 223kw night why are you on an E7 tariff??????
For E7 to be of benefit you need to use something like 60-70% (someone may correct this figure) of you elec during the night period because the tariff is designed for houses with electric storeage heaters.

Dicky2K

im on Eco 7, and i have night storage heaters, and its still !!!!!!! expensive considering no-one is there during the day.. waste of time, Go back to Gas fire and a blanket methinks :P

Premier_2

Just because the tariff has the word economy in it, doesn't mean it will be the cheapest solution for all.

As you go on to say, Economy 7 offers cheap rate electricity overnight, typically about 30%-50% of normal rates, but day rates are more expensive usually (typically about 10%)

However, you don't have to have storage heaters to benefit from Economy 7, and the actual costs vary.
The break even point varies by supplier & tariff so you need to carefully calculate this for your own situation, but about 25% night time usage is a typical break even point.

However, it can be that some customers would be better off on E7 compared to the equivalent standard rate tariff no matter how little overnight electricity is used.
http://forums.moneysavingexpert.com/showthread.html?t=1207887

(Exact prices may differ now since that thread was written, but the basic principle still stands)

Katie-Kat-Kins

If you don't have a gas supply like me economy 7 (or 10) will certainly be cheaper than standard rate! All my heating cooking and hot water has to be done with electric and a significant proportion of my electric is used during the cheap periods as it is for my heaters and immersion (I also use cheap rate where possible for other items like the washing machine).

You really can't make generalised posts like this and I think the Original post is a little irresponsible. Everyone should moniter their use and do a comparison based on their own actual use and not assume that anything will be cheaper. I am concerned by people telling others that a certain tarriff is or is not a good deal for them as they can't know without having actual usage figures.

I recently had a salesman at the door trying to convince my husband to ditch economy 7 as it was more expensive and "nobody has it anymore" - absolute tosh for us and I knew it, but it could have persuaded someone not so savvy to switch their meter and loose a lot of money.

Rebekah24

it is a con full stop

Would never rent somewhere with E7 again, I keep mine off, its just extortionate!

Of course we can all reduce our useage, monitor etc- but it is still pricey. for a years central heating I get about 6 weeks E7. Its too much for me!!!

shegar

Dicky2K wrote: »

im on Eco 7, and i have night storage heaters, and its still !!!!!!! expensive considering no-one is there during the day.. waste of time, Go back to Gas fire and a blanket methinks :P

I lived with storage heaters for 18 yr and I hate them so much , theres no such thing as cheap electric,,!! im on gas central heating now its the best ive ever had , but if you havent got a gas supply you got no choice.Who ever invented storage heaters want shooting.....:mad:

Katie-Kat-Kins

But storage heaters are normally cheaper to operate than any other form of electric heating - why shoot the inventor?????

There are actually a number of advantages over gas central heating, like the virtually non-existant maintenance costs, the fact that there is no risk of explosion or poisoning if they are defective (albeit a small risk of fire if faulty or used incorrectly), like the fact that you aren't dependant upon the goodwill of the russian gas pipeline operators for your supply.

They aren't perfect and I would prefer gas central heating, but they aren't the spawn of the devil either, in fact I have been pleasently surprised by ours.

Premier_2

Rebekah24 wrote: »

it is a con full stop

Would never rent somewhere with E7 again, I keep mine off, its just extortionate!

Of course we can all reduce our useage, monitor etc- but it is still pricey. for a years central heating I get about 6 weeks E7. Its too much for me!!!

What is?

Typical cost of E7 off peak electricity is about 5-6p per kWh
http://www.ebico.co.uk/ratesbyregion.php

Typical cost for gas is about 3.675p per kWh
http://www.ebico.co.uk/gasrates.php

But many people have gas boilers that are 60% or less efficient, meaning each kWh output actually costs over 6p.

Electrical heating is generally almost 100% efficient.

Looks good value to me, especially when you consider the significant reduction in capital expenditure for electrical heating compared to gas and the lower/non existent ongoing maintenance costs compared to gas.

Now you may think neither of these matter as you rent, but any business minded LL will be incorporating such costs into the rent demanded.

shegar

Katie-Kat-Kins wrote: »

But storage heaters are normally cheaper to operate than any other form of electric heating - why shoot the inventor?????

There are actually a number of advantages over gas central heating, like the virtually non-existant maintenance costs, the fact that there is no risk of explosion or poisoning if they are defective (albeit a small risk of fire if faulty or used incorrectly), like the fact that you aren't dependant upon the goodwill of the russian gas pipeline operators for your supply.

They aren't perfect and I would prefer gas central heating, but they aren't the spawn of the devil either, in fact I have been pleasently surprised by ours.

Its definately personal choice over which heating, With electric you have to look at the weather forcast the night before to see what setting you need them on the next day, and they chuck out heat during the day, and if you work when you get home you have to use extra heating cos they dont hold their heat until you go to bed..:mad:If you like to ventilate your rooms during the day youve then lost your heat because they cant make anymore heat until the next night.:mad: With gas I find it very flexible if its cold turn them on if its hot turn them off.... simples:D You dont need heat pumping into rooms when your not at home, You only have to service your gas boiler once a year around £60. to £70.... I JUST HATE STORAGE HEATERS .:mad:

shegar

Rebekah24 wrote: »

it is a con full stop

Would never rent somewhere with E7 again, I keep mine off, its just extortionate!

Of course we can all reduce our useage, monitor etc- but it is still pricey. for a years central heating I get about 6 weeks E7. Its too much for me!!!

If this bungalow had storage heaters when we viewed it we would have walked away.......after living with storage heaters for 18 year never again . I told the estate agent when we went on their books with them that we wouldnt even consider electric heating . No way ...:mad: Gas or oil. I hate the ....... things .