energy price cap @ Economy 7

archess200

I've taken over my very elderly aunts electricity supply.  She is on electric only, economy 7, night storage heaters.  Modest bungalow, bill is over £1600.  The day rate was 20.35p, night rate 11.1p.  I believe the energy price cap since 2019 was 17p per kwh, and is about to go down again.  I have tried to contact Eon, but little help.  How can they charge over the capped rate?  I can't find any explanations on Ofgem site, or elsewhere.  Anybody else able to explain?

I have now price comparison checked, and I can reduce her bill by about 30%.  How do Eon get away with it?

MWT

The blended rate for both day and night together needs to be below the cap, not both rates individually.

matelodave

You can have  a read here to get some idea of what's going on - https://www.ofgem.gov.uk/energy-price-caps/about-energy-price-caps/your-questions-answered-energy-price-caps#:~:text=Energy%20price%20caps%20limit%20how,being%20overcharged%20by%20energy%20suppliers.

Bear in mind that the cap only applies to a standard variable or evergreen tariff and is a strange calculation based on what an average user might use. It isn't specific to a kwh or standing charge rate so the supplier can mix it and they can charge what they like for any other tariff - as in all things the rules aren't clear, straightforward or easy to understand and suppliers will be pretty adept at maximising their advantage within the rules. 

I'm afraid that you'll have to do what the rest of us do - search the web and comparison sites to find a tariff that's more suitable or cheaper. 

MWT

Exactly, it is somewhat perverse, but the consumer can freely agree to pay any amount they want as long as the tariff is one they chose and not one they were put on by default.

Bottom line is always check for cheaper tariffs, never depend on the cap to 'protect' you...