Bulb raised my rates in January

Twincab

Hi I am with Bulb still not yet been moved over to Octopus. I received a note saying that as from 1st of January my rates would be increased. I thought that this was not supposed to be happening until end of March. I have electric storage heaters but only put two on at the moment. I also have fish tanks and a pond but my bill in January was £510.23 

MSE_James

See https://www.moneysavingexpert.com/news/2022/11/government-confirms-energy-bill-discount-for-january--with-bills/ for further details of what changed in January

pochase

The rates for E7 was adjusted in January by most suppliers.

Users on E7 had a higher discount than those on single rate. This was adjusted in January.

Scot_39

pochase said:

The rates for E7 was adjusted in January by most suppliers.

Users on E7 had a higher discount than those on single rate. This was adjusted in January.

Technically they had the same discount - but cheaper Ofgem energy cap rates.

Ludicrously forcing many off of E7 etc and therefore probably increaasing peak demand risk.

Left hand not knowing what the right hand is doing philosophy - at a time when the grid is on some days having to pay people £s not pennys to reduce peak demand.

dunstonh

Ludicrously forcing many off of E7 etc and therefore probably increaasing peak demand risk.

I don't buy that argument because it still doesn't change the fact that off peak is a cheaper rate than peak.      If the person was not better off on multi-tariff after the January changes then it means they were not better off before.   Their use of off peak was so small that it made virtually no difference to supply/demand.

Gerry1

dunstonh said:

Ludicrously forcing many off of E7 etc and therefore probably increasing peak demand risk.

If the person was not better off on multi-tariff after the January changes then it means they were not better off before.   Their use of off peak was so small that it made virtually no difference to supply/demand.

Not so.  I switched to single rate because the January price changes made E7 unattractive.

Twincab

We are on what they call a legacy tariff as no mains gas. The Economy rates are split in 2 during night and afternoon. I try and do cooking, washing etc during this time. But still paying a huge amount monthly. Have resorted to a calor heater in one room as husband is disabled    

Scot_39

dunstonh said:

Ludicrously forcing many off of E7 etc and therefore probably increaasing peak demand risk.

I don't buy that argument because it still doesn't change the fact that off peak is a cheaper rate than peak.      If the person was not better off on multi-tariff after the January changes then it means they were not better off before.   Their use of off peak was so small that it made virtually no difference to supply/demand.

My break even point vs SR used to be c42% - it has been c42% for years.  It even stayed at c42% in October

That break even point is now 53%.

Even 42% off peak use is not trivial amount.

It's not a question of off peak rate on E7 being cheaper than peak rate - that I would hope be a given (even although the range is stunning) - its a question of overall cost being cheaper or more expensive on E7 than SR at the new rates.

So for those on marginal E7 benefit - it is no longer so - so many ( a few regulars here amongst others ) have therefore rechecked - and as advised by the MSE team main articles on the subject - have switched to SR.

And so for them it's now a question of do I put the washing machine or dishwasher on at 6pm when it's convenient or after midnight when I used to - when they cost exacly the same on my new flat rate.

Cannot see what's really so difficult to grasp.

Edit

And with c3.5m - according to Ofgem in late 2021 were on E7 - if a significant number were to switch - and use high powered devices at peak times - it would make a big difference.

Say 500,000 did as @Gerry1 - and each decided to use a coulpe of 2kW appliances at peak times instead (washing machine and dishwasher) - thats 2GW - over 5% normal grid demand.

pochase

How do you get the idea that those 500,000 user will be using their appliance at exactly the same time? Not very logical that all of them will switch it on at 9am is it?

Also 500,000 x 2KW is 1GW, not 2GW.

Taking into account that they will be using it at different times of the day you are down to well below 1% not 5%.

Also the official break even is 42%, that is exactly where the suppliers have to calculate their rates to comply with Ofgem rules. Can you give us your rates, if you are really only have a break even at 53% something is wrong with your tariff.

Gerry1

pochase said:

Also 500,000 x 2KW is 1GW, not 2GW.

500,000 x "a couple of 2kW appliances" is 2GW, not 1GW...

pochase

And all 500,000 are using the couple of devices every day at the same time?

How many people will do wash daily and run their dishwasher at the same time also daily.

The E7 tariffs were created for specific group, those who have electric heating, and the tariffs are based on a 58/42 split between day and night use. If it worked out that their was a saving on a lower split, that was great, but it was not the purpose of those tariffs. 

Btw should this 500,000 users really run several 2KW appliances for several hours at night they would have no issues because that would guarantee that the E7 tariff would still work for them.