MSE News: Martin Lewis: Why your energy bill might be going up by MORE than 54%

Undisputedtruth

MattMattMattUK said:
 

The issues with the system started before privatisation as the UK has under invested in energy for decades, if we had followed the French example and built a large number of nuclear power stations we would not be reliant on global energy supplies in the same way (the French had their electricity bills increase by 4% since this started and gas is rarely used in homes). 

This is a really a poor excuse of an answer. The French are the second largest user of Russian gas after the Germans in Europe despite building a large number of nuclear power stations in the past.

The only reason why French energy bills have risen by a small amount is largely due to their effective energy cap unlike ours in the UK. Ironically, the French nuclear reactors are not operating at full capacity, meaning more gas were used to generate electricity and upping the wholesale gas price for all of us.

And by the way, building nuclear reactors doesn't provide cheap electricity either as capital expenditure is expensive and costly overruns for project delays. Plus the stakeholders want to make a profit themselves.

Then you have the to consider energy security. The majority of Uranium are mined in political unstable countries.

You are not a good apologist for the Tory Party, are you?

Perhaps, you've forgot how the Tories cut investments in renewable energy in 2015.

Here's a link to help you remember: https://www.theguardian.com/environment/2015/jul/24/the-9-green-policies-killed-off-by-tory-government

Undisputedtruth

MattMattMattUK said:

Zoobzi37 said:

Incidentally, in 2021 BG profits doubled to over £1 billion. Yes you are absolutely right. They can't afford to have cut price energy deals when they aren't making any money. 

You are confusing British Gas the exploration, extraction and refining company, and British Gas retail which is the energy supplier to people's homes, they are different companies. 

Actually, British Gas the exploration, extraction and refining company, and British Gas retail are all part of Centrica PLC.

kernowalan

QrizB said:

Mr_Mann said:

I've read ofgems rules and although they don't list maximum charges for economy 7 it seems suppliers can charge regional differences as well, ie more than the cap.

Ofgem sets a cap for E7 based on an assumed split of 42% night rate, 58% day rate. If you use more night rate than this, your bill will be less than the intended cap; if you use less night rate, your bill will be more.

Exactly how a supplier achieves this is up to them. They could have a very high day rate and a relatively low night rate, or a moderate day rate and a higher night rate. It sounds as though your supplier has chosen to keep the day rate low but to bump up the night rate. Would it be Utility Warehouse, by any chance? how do your new rates compare to EDF's?

If you use less than about 25% of your electricity on the night rate there's a good chance you'd be better off moving to a single-rate tariff.

I’m in the middle of a complaint to the Energy Ombudsman. I use 80% night rate yet my bill will be about 80% more expensive on a like for like 12 months consumption. I can’t find the Ofgem 42/58 split. Can you give me a link?
Incidentally the 42% on night rate used to be the break even for E7 to be cheaper. With the new UW tariffs the break even is now around 67%. If your night rate percentage is less then switch to the standard variable rate.

QrizB

kernowalan said:

QrizB said:

Mr_Mann said:

I've read ofgems rules and although they don't list maximum charges for economy 7 it seems suppliers can charge regional differences as well, ie more than the cap.

Ofgem sets a cap for E7 based on an assumed split of 42% night rate, 58% day rate. If you use more night rate than this, your bill will be less than the intended cap; if you use less night rate, your bill will be more.

Exactly how a supplier achieves this is up to them. They could have a very high day rate and a relatively low night rate, or a moderate day rate and a higher night rate. It sounds as though your supplier has chosen to keep the day rate low but to bump up the night rate. Would it be Utility Warehouse, by any chance? how do your new rates compare to EDF's?

If you use less than about 25% of your electricity on the night rate there's a good chance you'd be better off moving to a single-rate tariff.

I’m in the middle of a complaint to the Energy Ombudsman.

That doesn't sound good. What specifically are you complaining about?

I use 80% night rate yet my bill will be about 80% more expensive on a like for like 12 months consumption.

That, in itself, isn't a big surprise. Everyone's bills have gone up recently.

I can’t find the Ofgem 42/58 split. Can you give me a link?

Yes, it's here, on page 2 of the attachment:

https://www.ofgem.gov.uk/publications/decision-typical-domestic-consumption-values-2020

Incidentally the 42% on night rate used to be the break even for E7 to be cheaper. With the new UW tariffs the break even is now around 67%. If your night rate percentage is less then switch to the standard variable rate.

That doesn't sound right at all. Can you share the tariff details?

Edit: I see from your previous post that your night rate has gone from 7p/kWh to 18p/kWh. What are/were the day rates?

As a rough guide, and assuming you're in the southwest:

• Oct 21 cap: 20.18p/kWh effective, so 7p/kWh night would allow 29.7p/kWh day.
• Apr 22 cap: 26.69p/kWh effective, so 18p/kWh night would allow 33p/kWh day.

Second edit to add:

I've just got a UW quote for an address in Cornwall, and I get offered this:

17.459p/kWh night, 33.367p/kWh day is an effective rate of 26.686p/kWh, and consistent with the current Ofgem cap.

QrizB

PS @EssexHebridean is a UW customer and might have some more insight.

superkoopauk

@EssexHebridean have you managed to get away from UW yet