Economy 7 Price Cap

[Deleted User]

vaughan060 said:

[Deleted User] said:

vaughan060 said:

Feels like we’re being screwed

Would you like to pay the non-EPG rates then, if the government help is "being screwed"?

In your area, an example of that is 89.29p day rate and 33.92p night rate.

vaughan060 said:

If this info is correct does anyone know why economy 7 tariff price cap was below the £2,500 average but will be almost £3,000 from January 1st.

The caps have always been different, and you've completely misunderstood that paragraph.  You do know that it's talking about the OFGEM price cap, not the EPG government cap?

Your "nearly £3000" needs to be compared with the £4279 for dual fuel customers.  Still have the same argument?

If you have a better understanding of the situation could you please then explain, why my rates will increase on January 1st when the government cap lasts until March

Because the government cap isn't actually a cap.  Someone just decided it was easier to describe it as that.

The only actual cap is the OFGEM cap - which is actually a range of caps.  For single rate tariffs, the government made up their magic number of £2500 (for typical dual fuel usage, averaged across all regions, for direct debit payment) and worked out new rates from that, by calculating how much less than the OFGEM cap this number was.

The OFGEM cap for multi-rate tariffs is a different range of caps, and the government didn't make a new magic number for those tariffs.  They came up with a discount on the unit rate that they thought had the same effect.  It happens to be the same discount that was decided as the maximum discount for single rate fixed tariffs - roughly the difference between the OFGEM cap and the magic government average (split in some method that isn't clear between gas and electricity).

The OFGEM caps still change every three months - so they are changing in January. They've done the same thing again - stuck with the magic £2500 average for single rate direct debit duel fuel, but used a unit rate discount for multi rate tariffs.  It happens that the OFGEM caps for multi-rate tariffs have gone up by more than the ones for dual fuel single-rate tariffs (likely because the calculations for electricity have gone up by more than the calculations for gas), so the discount (which is now bigger) isn't enough to avoid all possible increases.

There are increases and decreases on both single- and multi-rate tariffs in January.  The only thing that the government have said isn't changing is this mythical £2500 average of averages of typical usages.

SnakePlissken

UK gov doesnt give a frack about E7 users.

SO MUCH FOR PRICE CAP UNTIL APRIL!

[Deleted User]

SnakePlissken said:

SO MUCH FOR PRICE CAP UNTIL APRIL!

That's what happens when you only listen to a soundbite and don't try to understand how it actually works.