How are Scottish Power charging me more than the price cap per unit?

Aviendha

I was switched to Scottish Power's standard variable tariff when my previous supplier went bust in February. I just assumed that the price cap would apply but when I checked the unit rates today (to calculate how much it's likely to go up by), I see the day unit cost is 32p when the current price cap is 28p for the region according to the MSE website. I have an economy 7 meter, but I still don't understand how they can charge 4p/unit more than the price cap and tell me it's their cheapest tariff. Has anyone else encountered this or know why they could be charging more?

[Deleted User]

The price cap unit price on the website is not for economy 7 - that is slightly different maths.

Or were you expecting the same price as normal users in the day and still cheaper at night?

pochase

If the maximum day rate for E7 would be the same as for single rate, why would anybody have single rate?

Every supplier of calculate the night and day rate as they chose based on a 58/42 spilt. They can make night rates cheaper which increases day rates, or increase night rates which decreases day rates.

Aviendha

I didn't think that they could put the price above the price cap even with the economy 7 meter. I know the night rate is cheaper but there isn't really much of a benefit to it since the amount of electricity we use during those hours is negligible.

born_again

Look at the unit costs on your bills.
You will have 2 rates on Economy 7 Daytime is always more than the std variable rate, as you get cheaper nighttime.

PennineAcute

Aviendha said:

I didn't think that they could put the price above the price cap even with the economy 7 meter. I know the night rate is cheaper but there isn't really much of a benefit to it since the amount of electricity we use during those hours is negligible.

Are your day and night rates similar throughout the year, or just over summer?

Aviendha

Thank you. I always just assumed it was an advantage having an economy 7 meter but I'm now I'm wondering if I would be better off with a standard meter. From my last bill it works out that we use 10% of our energy with the night time tariff.

pochase

With a 10% night use E7 is wrong for you. Even 20% would be to low.

Ask you supplier to change you to single rate.

[Deleted User]

E7 tariffs are set with a split 58/42.  If you have that, you will be exactly at the cap, if not then you will be better (more at night) or worse (less at night) off.

PennineAcute

Aviendha said:

Thank you. I always just assumed it was an advantage having an economy 7 meter but I'm now I'm wondering if I would be better off with a standard meter. From my last bill it works out that we use 10% of our energy with the night time tariff.

Using 10% of your energy at night, gives you 90% at the expenisve daytime rate.  IMO you need to change to a standard meter - or (although probably impossible at the moment) move to a company who will allow you to move over to a standard tariff with an E7 meter.  Some companies will allow you to enter both readings to get a total usage.

Aviendha

Thank you everyone. I will enquire about switching to a standard meter.