Economy 7 doubling my bills to over £5500

Jenny555

Hi there, can anyone advise me please? Many years ago I used to have electric storage heaters with economy 7 tariff but had them replaced with gas radiators. Over the years, when switching energy through the MSE energy club to a better tariff, I was offered a standard daily rate by various providers as opposed to a cheap night/high day rate (a median daily rate). Since my previous Energy provider, Igloo went to the wall, I was put with E-on last October 2021. I opted to make payment with actual readings rather than charge me an over estimated monthly direct debit until, I hoped the market would settle! Along with this, instead of adding my night and day readings as one and charging me an average daily rate as Igloo did, E-on have charged for economy 7 night rate and day rate again, separately (I have to give them as 2 separate readings). This now means, I don’t get the government’s energy price cap guarantee of around 34p per kWh. Instead, I am now being charged: day rate of 47p kWh and night rate of 17.5p kWh. Although I use the washing machine at night, there is very little value in keeping an economy 7 tariff, as there is only me and my husband and the majority (4/5ths) of our electric is day use. Currently, we are on course, by my estimation to pay an annual electric bill of £5500+ Instead of £2900 odd with 34p kWh price cap daily rate. Nowhere seems to be offering switching and MSE energy club doesn’t have the high tariff I’m being charged as the field option, so it assumes I’m on the energy price cap, which I’m not. We are turning off lights and watching our consumption etc, I have emailed E-on asking them to charge me a daily rate and dispense with the economy 7 tariff but not heard back to date. Do they have to agree or not, does any one know? Any advice from anyone would be greatly appreciated. Thank you.

DE_612183

Ok, so first things first - the price cap is set for normal domestic tariffs, but if you have E7 you get a similar value split across the two readings.

What you need to do is work out whether you are better off on the E7 tariff ( you can still take advantage of off-peak usage at a lower rate ), or get them to change you meter for a single reading one.

Soem suppliers will put you on a normal 24/7 domestic supply and just add the two sets of usage together - but this is not usual and you're better off getting the meter changed.

Jenny555

Thank you for your advice. We had a new meter installed about 5 years ago which sows the 2 settings of day and night but also show a total setting. The lower night rate is from midnight until 8am, changing in the winter. I’ve calculated that we would pay about £2900 on the standard daily tariff (price cap of 34p). It’s nearly £2000 more if we keep economy 7. I’m just wondering if E-on will do this. It’s not in their interest to, lets face it. If not, how do i switch? Many companies are suggesting not to, again, it’s not in their interest financially to accept more customers. Thank you for your help though. I will try to persue E-on.

[Deleted User]

They should not refuse your request. It probably doesn’t need a change of meter and you are free to change tariff.

pochase

How do you get to a difference of £2600 (5500 - 2900) by paying E7?

£2900 - £170 SC = £2730 / 0.34 = 8029KWh

8029KWh x 47p = £3773 + £170 SC = £3943

And that is if you don't use a single KWh at night.

If you use just 20% at night (1606KWh) and 80% during the day (6423KWh) we get to

1606 * 0.17 = £273 + 6423 * .47 = £3018 + £170SC= £3425 

That is still more expensive, but far from the numbers you calculated.

sacko1305

I'm in a similar situation with EDF. I asked them to switch me to single rate tariff - I think they are waiting for the 14 day cooling off period ends before they change my tariff (although I had an email from them saying it would be effective from the date I contacted them). 
I think it is ridiculous that they will tell you if you would be better off on a different tariff, but NOT if you would be better off switching from E7 to single rate.
I strongly believe that energy companies are exploiting E7 customers that are below the break even night usage by greatly increasing the difference between the day rate and night rate.

Jenny555

Hi thanks for all your advice and comments. My figures are estimated on an annual use to date. I have taken my annual use (which is probably less so now) and multiplied a 5th by the lower rate (17.5) and 4/5ths by the higher rate (47p) and added them. The combined use multiplied by 34p is about £2941 odd, although I haven’t added a  standing charges to this. The latter is around £5500+ mark. I haven’t included our gas heating, although we won’t be using that. 

My annual usage is 7,823kWh.

[Deleted User]

sacko1305 said:

I strongly believe that energy companies are exploiting E7 customers that are below the break even night usage by greatly increasing the difference between the day rate and night rate.

They’re not.

 Increasing the day/night difference is good for most E7 customers.

 If you’re on the wrong tariff, grow up, take some responsibility and switch. It is nobody’s job to run your life but your own.

EssexHebridean

sacko1305 said:

I strongly believe that energy companies are exploiting E7 customers that are below the break even night usage by greatly increasing the difference between the day rate and night rate.

How strange - I strongly believe that a lot of energy companies are exploiting E7 customers who are rightly on E7 tariffs, take the time to learn how they work, and make good use of them, by greatly reducing the difference between the day rate and night rate... 

sacko1305

[Deleted User] said:

 If you’re on the wrong tariff, grow up, take some responsibility and switch. It is nobody’s job to run your life but your own.

EssexHebridean said:

How strange - I strongly believe that a lot of energy companies are exploiting E7 customers who are rightly on E7 tariffs, take the time to learn how they work, and make good use of them, by greatly reducing the difference between the day rate and night rate... 

You and I are capable of calculating whether we are better off on E7 or a single rate tariff. Many others are not.

Sad that you have to resort to insults.

Rosie1001

[Deleted User] said:

sacko1305 said:

I strongly believe that energy companies are exploiting E7 customers that are below the break even night usage by greatly increasing the difference between the day rate and night rate.

They’re not.

 Increasing the day/night difference is good for most E7 customers.

 If you’re on the wrong tariff, grow up, take some responsibility and switch. It is nobody’s job to run your life but your own.

That is a harsh comment and not needed …

all the tariffs are confusing for a lot of people…. Lots of different companies offering different deals …

my parents when they were alive , just paid their bills  …they thought the companies were always right , which we know is not true …
 
if everyone was clued up this forum wouldn’t very quiet … 

i consider myself savvy but even I get baffled at times with it all …plus the government constantly change what is happening regarding help to people … it can change in a day !