Unit rate percentages..

[Deleted User]

Hi. Can anyone help with if this deal Ive been sent is worth going for.  Martin Lewis say work it out in percentages of how much the electric goes up compared to the deal you have now and the price cap. But I'm confused on how to work that out.

Deal I'm on now ends 30/4/22
Economy 7
Day rate 20.88
Night rate 10.26
SC 16.44

New deal fixed until 30/4/23

Economy 7
Day rate 34.31
Night rate 16.91
SC 23.29

I haven't had the 1st April 2022 update of the new charged as of yet.

Any help and feedback would be appreciated....

QrizB

Your day rate has increased by 64% and your night rate by 65%. However that isn't the whole story.

If you're an entirely average E7 user, using 58% at the day rate and 42% at the night rate, your new E7 rate is equivalent to a single rate of 27p/kWh. The OFGEM cap for multi-rate metering varies by region (which region are you in?) but the single-rate equivalent is around 26p/kWh, slightly less than you've been offered - but the standing charge you've been offered is considerably less than the one assumed by the Ofgem cap.

On balance, depending on exactly how much electricity you use and the split between day and night rates, I think you're new deal could work out to be slightly under the capped rate.

[Deleted User]

Hi. I'm 40% night and 60% day.
990 night units

1353 day units 

Edited to say. I'm in the Eastern region.

QrizB

Thanks. you use slightly less night (and slightly more day) than the cap calculations, but it's close enough that the difference is minor. you're helped by being a lower-than-average user, too.

I've crunched the numbers for multi-rate metering and in the Eastern region the cap works out as 37p/day standing charge and 27.3p/kWh equivalent unit rate.

• On a capped rate, you'd expect to spend £775/yr
• On that fixed rate, you'd expect to spend £717/yr

So the fix will save you roughly £58/yr, say £5/month, compared to a typical capped variable tariff.

Edit to add: I thought those numbers looked familiar, we coverd the same ground in this thread last week!

Shedman

And given the predications of a further 20% increase in Oct then that fixed deal is likely to produce further savings.   

What's the early termination exit fee should rates start coming down (🤞) and you want to switch before Apr 23 ?

victor2

[Deleted User] said:

Hi. I'm 40% night and 60% day.
990 night units

1353 day units 

Edited to say. I'm in the Eastern region.

For that usage, you would see an overall cost increase of 62%, from £507 to £820 (assuming all rates include VAT).

Presumably you also have gas, as that is very low annual usage if you only have electricity.

Look at single rate tariffs, as your 37% night usage is borderline as to being enough to justify Economy 7. A lot of suppliers will accept customers with E7 meters on single rate tariffs.

[Deleted User]

Shedman - the exit fee is £30.

Victor2 - I only have electric. I am a low user. Luckily this year has been a mild winter.
Ive often wondered whether it would worth me being on a single rate tariff through the summer months then switching to an Economy 7 tariff come end of sept. I've not because I don't want my direct debits being messed about with or the possibility of my readings been messed up by the electric companies if I did.

[Deleted User]

ImDoingItForMe said:

Hi. I'm 40% night and 60% day.
990 night units

1353 day units 

Edited to say. I'm in the Eastern region.

Hi,

are you using storage heating, if so day/night, 60/40 is a poor ratio?

victor2

ImDoingItForMe said:

Shedman - the exit fee is £30.

Victor2 - I only have electric. I am a low user. Luckily this year has been a mild winter.
Ive often wondered whether it would worth me being on a single rate tariff through the summer months then switching to an Economy 7 tariff come end of sept. I've not because I don't want my direct debits being messed about with or the possibility of my readings been messed up by the electric companies if I did.

It can be a hassle changing tariffs every 6 months, not least because of the exit fee.

As you say the mild winter has kept heating costs down.

You could look at changing your lifestyle a little to use more night rate electricity, even in the summer. Various appliances, such as dishwashers and washing machines have "delayed start" options, so that you can ensure they run during the night rate hours. Maybe you've already explored those options though. Apologies if so.

[Deleted User]

Hi. I do make use of the low night rate 
I'm a single person household. I do everything I possibly can to cut my electric usage but not to the detriment of my life. If I need heat I don't scrimp in other words.
 
I've no doubt If this winter hadn't been so mild my night rate would've been a lot higher. 

I use the night rate as much as I possibly can and have no dishwasher. But do use the washing machine, slow cooker and drier (on when I'm at the end of my sleep before E7 switches to day rate, but only in the winter once a week). I've been on economy 7 for 14years. 

[Deleted User]

QrizB said:

Thanks. you use slightly less night (and slightly more day) than the cap calculations, but it's close enough that the difference is minor. you're helped by being a lower-than-average user, too.

I've crunched the numbers for multi-rate metering and in the Eastern region the cap works out as 37p/day standing charge and 27.3p/kWh equivalent unit rate.

• On a capped rate, you'd expect to spend £775/yr
• On that fixed rate, you'd expect to spend £717/yr

So the fix will save you roughly £58/yr, say £5/month, compared to a typical capped variable tariff.

Edit to add: I thought those numbers looked familiar, we coverd the same ground in this thread last week!

Hi. Yes we did 😌. I was just wanted to know the percentage rate. I can't decide whether to move rates now or wait. I wondered if the new offer would still be available come end of April? Or with the charges going up on 1st whether to bite the bullet and change now or wait until the 49days (middle of march) then I can look around at other electricity companies tariffs and charges.