Maximum rates price guarantee and economy 7

Mikebella

Hi. I'm currently on 30p per kWh daytime and 20p per kwh night time, for my electricity. So basically I'm two pence more per kWh than the average 28p single unit rate for electricity in the daytime. Once the energy price guarantee kicks in, in October, can my energy company Octopus charge me more than 34p per kWh for my daytime rate?

gfunkuk

Based on my knowledge yes if you're on economy 7. My current fix rate on E7 is 36p day and 22p night and I believe that is cheaper than the new guarantee.  If I'm wrong I'm happy to be corrected.

I think the actual rates on E7 are different depending on where you live and who your supplier is.

Mikebella

So you're being charged well above the current price cap, maybe look into that. 

Yes I know the actual rates are location dependant. But for the sake of arguement if they are 34 pence for the single rate can they charge me more than 34 pence for my day rate?

Mikebella

I can kind of understand the day rate being higher than the old price cap pence per kWh, but this new price guarantee scheme in my eyes is different. 

gfunkuk

Mikebella said:

I can kind of understand the day rate being higher than the old price cap pence per kWh, but this new price guarantee scheme in my eyes is different. 

Why? If it were different everybody would be changing to E7 en masse!

Mikebella

No what I mean is, say your day rate, 36p is more than the single rate in your area, (e.g. 34p), should your day rate come down to that price under the new price guarantee? So my question being are they going to be allowed to charge more than the single rate price guarantee rate if you are on economy 7, for your day rate? 

Spoonie_Turtle

Mikebella said:

No what I mean is, say your day rate, 36p is more than the single rate in your area, (e.g. 34p), should your day rate come down to that price under the new price guarantee? So my question being are they going to be allowed to charge more than the single rate price guarantee rate if you are on economy 7, for your day rate? 

No, your day rate doesn't have to come down to 34p.  Yes they are allowed to charge more for the day rate, because you have a cheaper night rate to balance it out.

Mikebella

Yeah makes sense. I'll have to check after the first month. I did have storage heaters, now I have gas. So don't really need economy 7, but it does work out slightly cheaper as I'm a night owl. When it gets to November I'll calculate what it would be if I just changed to single rate and maybe switch over if it's cheaper. 

gfunkuk

Spoonie_Turtle said:

Mikebella said:

No what I mean is, say your day rate, 36p is more than the single rate in your area, (e.g. 34p), should your day rate come down to that price under the new price guarantee? So my question being are they going to be allowed to charge more than the single rate price guarantee rate if you are on economy 7, for your day rate? 

No, your day rate doesn't have to come down to 34p.  Yes they are allowed to charge more for the day rate, because you have a cheaper night rate to balance it out.

Yeah I agree

gfunkuk

Mikebella said:

Yeah makes sense. I'll have to check after the first month. I did have storage heaters, now I have gas. So don't really need economy 7, but it does work out slightly cheaper as I'm a night owl. When it gets to November I'll calculate what it would be if I just changed to single rate and maybe switch over if it's cheaper. 

Its not only you (looks at watch)

Don't forget to check your meter real time clock. Many are way out. For my apartment for example E7 is 0545 to 1245. Others here are totally different. It's a lottery!

MWT

Mikebella said:

I can kind of understand the day rate being higher than the old price cap pence per kWh, but this new price guarantee scheme in my eyes is different. 

The only figures that have been published so far for the new scheme are for single-rate electricity, and payment by DD and are an average across the regions.

The cap for multi-rate tariffs will be different and are usually calculated on the basis of 4,200kWh consumption and a 58/42% split day/night.

So once the numbers are published you can check the rates your supplier uses on that basis.