Octopus, economy 7 and price cap

xoxoemzxox

Hi All,

I have been looking everywhere to try and find what the rates should be under the price cap for Economy 7 day and  night rates and I cant seem to find them anywhere, can anyone help with where I can find this?
I am trying to understand my bill with Octopus as the way they bill is rather confusing. It seems they are billing me 86.79 per KW hour on day rate and 34.27p per KW hour for my night rate then discounting it down applying the price cap to 41.17 and 18.95 respectively. Which if I go with the standard energy rate cap at 34p per KW its being overcharged?

PeterGr

It depends on the proportion between day and night units that you are consuming.  If your night consumption is sufficient it becomes cheaper to have the Economy 7 tariff.

So over 12 months what is your kWh consumption for day and night periods?

ic

Economy seven has always had higher day rates, to compensate/encourage the use of the overnight cheaper rates.

From https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates
Note that for customers on multi-register tariffs such as Economy 7, suppliers have flexibility to apply slightly different discounts to the individual rates within the tariff, helping to balance-out the reduction of more expensive day rates with cheaper night-time electricity rates. Each supplier will approach this differently.

Spoonie_Turtle

The weighted average for E7 is worked out on 58% daytime and 42% night use.  This page has a table with the rates and the weighted average so you can see what it is.  https://octopus.energy/blog/energy-price-cap-oct-2022/

That's essentially the 'cap', such as it is, but with your own usage split between day and night may work out above or below that.

If you have your actual annual usage figures then members here can help you work out whether E7 is working for you or not.

Edited: major typo

cm4ever

xoxoemzxox said:

Hi All,

I have been looking everywhere to try and find what the rates should be under the price cap for Economy 7 day and  night rates and I cant seem to find them anywhere, can anyone help with where I can find this?
I am trying to understand my bill with Octopus as the way they bill is rather confusing. It seems they are billing me 86.79 per KW hour on day rate and 34.27p per KW hour for my night rate then discounting it down applying the price cap to 41.17 and 18.95 respectively. Which if I go with the standard energy rate cap at 34p per KW its being overcharged?

Octopus website tariff info - go here: -

https://octopus.energy/tariffs/

Then enter your postcode at the bottom of the page and all the tariff prices for your area will be displayed.

Scot_39

xoxoemzxox said:

Hi All,

I have been looking everywhere to try and find what the rates should be under the price cap for Economy 7 day and  night rates and I cant seem to find them anywhere, can anyone help with where I can find this?
I am trying to understand my bill with Octopus as the way they bill is rather confusing. It seems they are billing me 86.79 per KW hour on day rate and 34.27p per KW hour for my night rate then discounting it down applying the price cap to 41.17 and 18.95 respectively. Which if I go with the standard energy rate cap at 34p per KW its being overcharged?

You are not being overcharged for your day units.

In the same way as you are not being undercharged for your night units.

E7 is deliberately intended to be that way - and it's a user choice - E7 or single rate.

(Read one posts say Octopus default default to meter type E7 for E7 meter - on joining - but can phone to go flat rate on an E7 meter if decide that best).

The key test for you is - with you annual(*) night and day use if possible - am I cheaper on E7 overall or not.

Average price = (Annual Ideally(*) Number of Units at Night Rate * Night Rate + Units at Day Rate * Day Rate )/ Total Units

and comparing that result with your regional single rate EPG price.

* Annual as many on E7 are heating with it - so depends on weather primarily  - if like me and many on electric heating.

My range c55/60% off-peak summer - 90%+ of a far bigger number in coldest winter - aver 75-80%+ annually - last few years - but thats E10.  And so overall I win - on average price - so E10 stays.

Due to the pricing rules - there is simply no one EPG price for peak and off-peak - per region or payment method as the govt tables for SR.

If you compared say Octopus rates tables for E7 to EDF rates for E7 - for instance - the would almost certainly be different.

So your rates - day 41p higher than SR (ave 34p - region ?)  - night c19p (cheaper than EPG) - are very unlikely to be found anywere other than your suppliers price list.

Their are rules - but for example 55p/9p is every bit as valid and allowed by Ofgem and govt EPG pricing as your c41p/19p pricing. But note also the general rule here - due to the weighting norm re Ofgem single figure tables - the cheaper the night - the more expensive the day.

As the traditional target - people with electric night storage heating - hot water immersion heating - to be fed at the lower price - overnight. But suspect there's also now an increasing number of BEV drivers who could also benifit - but some suppliers are targetting them specifically with EV tariffs - with different pricing / timing structures.