What is economy 7?

donnaessex

I called Eon yesterday to give my meter readings to them. I moved into a 3 bed semi recently and I called Eon on the day we moved to give our first reading - when I gave the electricity reading the lady said I needed 2 numbers?

I did what she told me and called back yesterday with the two readings and when I queried why there are two different numbers the man told me I was on economy 7 tariff?

I have gas central heating (albeit with an old boiler with immersion heater) and thought economy 7 was something to do with electric storage heaters?

Can anyone tell me what it is and what implications (if any) it will have on our bills etc? I've just switched online last week via uswitch to Scottish Power (with quidco too!) but didnt say it was economy 7 because I didnt know!

Thanks in advance.

E.ON_Company_Representative

Hi donnaessex,

An Economy 7 meter isn’t specialised to all electric properties, it is not at all uncommon to have E7 meters in properties that have gas supplies.

E7 meters provide electricity in the same way as normal meters, but record the usage in two blocks. One rate will record electricity used for 7 hours between pre determined times on the meter (usually somewhere between 12am and 8am). The other rate records electricity used outside of the pre determined 7 hour period.

When supplied by E.ON you can have a tariff that reflects the different rates or a tariff that ignores the differing rates.

An E7 tariff means we will bill you a day unit price for energy used between 8am and 12am and a night unit rate for energy used from 12am and 8am (or the equivalent 7 hours between these times).

A non E7 tariff means that the two rates are added together and you are billed at the prices you would have if you didn’t have an E7 meter.

The reason both tariffs are available is because it may not be cost effective to have an E7 tariff even if you have the meter, as the benefits are based on the percentage of electricity you use during the night period.

If you use low amounts in the pre determined night period but have an E7 tariff, it could prove more expensive than necessary.

I believe some companies won’t add the two rates together and will wish to change the meter if you do not require E7 (check with each company for details).

Regarding your switch, not entering yourself as having an E7 meter may have effects on the accuracy of the comparison results. You could try comparing again now you know to see the outcome.

If you get in touch with us we can advise you how much you use at night and if an E7 tariff is the best option.

Brian

espresso

Economy 7 is a dual rate tariff primarily for those who use electricity for heating. On E7 you get 7 hours during the night at a reduced rate per kWh, however the other 17 hours are usually charged at a higher rate than on a standard rate tariff, tariffs do vary according to region.

You would probably be better cancelling your switch to Scottish Power ASAP as you are unlikely to be on the best tariff as you use gas for heating and I believe that Scottish power are one of the suppliers who charge their customers to have an E7 meter changed to a standard meter.

donnaessex

Many thanks for the quick replies.

I've just re-checked with uswitch and Scottish Power is still the cheapest provider for me phew!

Does anyone have any tips on how to get the best savings from economy 7 then? I presume heating the water overnight on a timer switch may help but if so will there be enough hot water for the babies baths at night time? Any other ways of taking advantage of the cheap electric?

espresso

donnaessex wrote: »

Does anyone have any tips on how to get the best savings from economy 7 then?

Switch to a standard rate tariff!

Why would you want to deliberately use more electricity, which costs more per kWh, to try to make an unsuitable E7 tariff pay?

What are the rates that you will be on with SP? Without knowing the day/night rates, you can't work out the break even point which could be 30% - 40% of your total consumption.

E.ON_Company_Representative

Hi donnaessex,

It’s difficult to say what percentage of the electricity usage you need to use in the E7 period to make the E7 tariff pay, as it depends on the exact prices.

Quite often you’re looking at over 35% to make the E7 tariffs pay, but like I say it depends on the exact details of the prices and your area.

I would say that heating water alone won’t cut this.

Would you like me to look at how much your usage on the night rate? You can email me on the address on the left if you’d like me to check.

Brian

donnaessex

espresso wrote: »

Switch to a standard rate tariff!

Why would you want to deliberately use more electricity, which costs more per kWh, to try to make an unsuitable E7 tariff pay?

What are the rates that you will be on with SP? Without knowing the day/night rates, you can't work out the break even point which could be 30% - 40% of your total consumption.

I'm sorry I dont understand...

Apologies for the confusion from me!

So I can just call them up and ask them to switch me over then? OK then copied from Uswitch:

Economy 7 plan:

Gas 3.336p per kWh
2.384p per kWh above 4572 kWh p.a
Electricity 16.59p per kWh (day)
11.31p per kWh (day) above 900 kWh p.a
5.91p per kWh (night)

Standard online plan:

Gas 3.336p per kWh
2.384p per kWh above 4572 kWh p.a
Electricity 14.85p per kWh
10.23p per kWh above 900 kWh p.a

donnaessex

E.ON_Company_Representative:_Brian wrote: »

Hi donnaessex,

It’s difficult to say what percentage of the electricity usage you need to use in the E7 period to make the E7 tariff pay, as it depends on the exact prices.

Quite often you’re looking at over 35% to make the E7 tariffs pay, but like I say it depends on the exact details of the prices and your area.

I would say that heating water alone won’t cut this.

Would you like me to look at how much your usage on the night rate? You can email me on the address on the left if you’d like me to check.

Brian

Thanks Brian but I doubt you'll be able to find out seeing as I have only been there for 2 weeks? If you can then I'll email you. Thanks again.

E.ON_Company_Representative

Hi donnaessex,

It's fine, let me take a look for you.

Brian

spiro

You need to check the percentage you use at night rate and day rate to check you are on the correct tariff. Do this by working out how much you are spending on the E7 tariff per week and then calculate it again on the 24/7 tariff. If the 24/7 is cheaper as them to switch your tariff.

Premier_2

donnaessex wrote: »

...I've just re-checked with uswitch and Scottish Power is still the cheapest provider for me phew!...

If scottish power are the cheapest provider, it may be (depending on location and particular tariff) that you are better off on E7 compared to the equivilent non-E7 tariff no matter how much or little overnight electricity you use.

http://forums.moneysavingexpert.com/showthread.html?t=1207887