On a fixed economy 7 tariff with Eon - should the price guarantee reduce my bill?

namsoni

Hi all,

Earlier in the year I fixed my tariff with e-on to March 2023. I missed the deal Martin told everyone to go on, but took the next one, even though it was higher than the variable rate, as I was worried about a huge rise in October. Obviously this didn't materialise with the energy price guarantee, so I've lost out somewhat, but que sera. I now want to make sure I'm not paying more than the energy price guarantee, but being on an economy 7 tariff with a different night and day rate, I'm not sure how I work this out. 

I am only on electricity. My day rate is 37.7p per kwh, and night rate is 14.74p per kwh, and standing charge 38p per day. It's clear my day rate is higher than the price guarantee, but not my night rate, or my standing charge. So is it reasonable to expect any reduction in my day rate, or does it all balance out? I'm not clear how the energy companies calculate this for economy 7 customers. I'm also not clear whether being on a fixed tariff means I'm just not eligible for a reduction anyway. Grateful for any advice!

N

[Deleted User]

The price guarantee rate is for single rate tariffs. Of course your day rate should be above this, that’s what happens if you have a cheaper night rate.

Or did you think E7 customers pay the same as everyone else in the day but still get cheaper at night?

Your fix is way under the cap level for E7 tariffs at those numbers - a weighted average of about 28p.

dunstonh

So is it reasonable to expect any reduction in my day rate, or does it all balance out?

No it is not reasonable to expect a reduction in your day rate.   E7 rates do take into account the EPG but suppliers balance it over the day and night rate.  Not just one in isolation.   The EPG does not apply to fixed rates.

ariarnia

namsoni said:

 So is it reasonable to expect any reduction in my day rate, or does it all balance out? I'm not clear how the energy companies calculate this for economy 7 customers. 

its basically worked out that the 'average' user would pay the same 2500. the actually split between day and night is different for different companies (some are maybe 60 percent night and 40 percent day others might be based on 70/30 so its worth checking if theres a better deal with someone else depending on how much you actually use at night). that means your day rate will always be higher than someone on a flat tarrif but the night rate should be relatively lower so you pay the same on 'average' 

[Deleted User]

ariarnia said:

namsoni said:

 So is it reasonable to expect any reduction in my day rate, or does it all balance out? I'm not clear how the energy companies calculate this for economy 7 customers. 

its basically worked out that the 'average' user would pay the same 2500. the actually split between day and night is different for different companies (some are maybe 60 percent night and 40 percent day others might be based on 70/30 so its worth checking if theres a better deal with someone else depending on how much you actually use at night). that means your day rate will always be higher than someone on a flat tarrif but the night rate should be relatively lower so you pay the same on 'average' 

It’s not £2500 for E7, it’s an even less useful 4200kWh and about £1500ish

ariarnia

[Deleted User] said:

ariarnia said:

namsoni said:

 So is it reasonable to expect any reduction in my day rate, or does it all balance out? I'm not clear how the energy companies calculate this for economy 7 customers. 

its basically worked out that the 'average' user would pay the same 2500. the actually split between day and night is different for different companies (some are maybe 60 percent night and 40 percent day others might be based on 70/30 so its worth checking if theres a better deal with someone else depending on how much you actually use at night). that means your day rate will always be higher than someone on a flat tarrif but the night rate should be relatively lower so you pay the same on 'average' 

It’s not £2500 for E7, it’s an even less useful 4200kWh and about £1500ish

ah sorry. is that some kind of average based on most people in e7 being in flats or something? i would have thought the e7 rate being most common in all electric would have made the average higher not lower. 

[Deleted User]

Median usage of class 2 meters, just like the 2900kWh is the median usage of class 1 meters.