MSE News: Government changes how the Energy Price Guarantee should be applied to Economy 7 tariffs

Scot_39

The examplecI found was where EDF used a lower discount on night rates in one of theirvsub 10p night rate areas.

So you mightbargue the rates change on nights would have been even  larger under new regime - from a lower start point.

The change does what it says it does - it means regardless of % off peak usage - everyone gets the full epg discount of all units used.

Whereas if 33p was split say 28 night vs 38 day, depending on use, people got less overall epg discount, e.g.  high night users got less epg benefit.

MultiFuelBurner

As with all things the system is not perfect but it does simplify the calculation.

Does it also remove E7 competition, which apart from a few beta/tou tariffs was the only form of competition left in the market.

dealyboy

@MultiFuelBurner said:

As with all things the system is not perfect but it does simplify the calculation.

Does it also remove E7 competition, which apart from a few beta/tou tariffs was the only form of competition left in the market.

As with all things the system is not perfect but it does simplify the calculation.

I don't know the calculation you're referring to, but for this quarter when the vast majority are on EPG influenced E7 rates:

< 42% @ night rate ... better off on new discount guidance ... but better off still on single rate
>= 42% @ night rate ... likely little better or worse off for most (no or very small difference to night rate), however seasonal usage patterns will result in lower costs ... but some night rates increasing by high double digits percentages, the higher the night rate percentage usage the greater the impact, but again likely mitigated by seasonal factors.

Usage: 58% day rate, 42% night is still equivalent to EPG single rate of 33 to 34 p per kWh 

Does it also remove E7 competition, which apart from a few beta/tou tariffs was the only form of competition left in the market.

No ... I'm a living example. Suppliers in my region have widely differing E7 rates.

dunstonh

wrangler21 said:

So thanks Martin for always championing the underdog, but since my supplier has applied the cap my economy 7 night rate has increased from 10.9p per kWh to 18. Since 85 % of my electricity is night rate it means my monthly ddi now goes up to £352. I know you had best intentions, but as Homer once said, you tried and you failed, the moral is.... Neeever try, hahaha

Move to another supplier with a lower off-peak rate that suits your usage ratio.