Economy 7 electricity rate

Oldfielder

We’re with Scottish Energy and are heavy economy 7 users having a night storage cooker, storage radiators, and immersion heater for hot water. We are on the Standard Variable rate and have been informed that due to the reduced price cap the daytime rate is being reduced but the economy 7 rate is being increased yet again this time by about 13%. This means that whilst most will see a reduction our monthly bill will increase by another £25 or more. It’s very puzzling and a worrying trend which makes me wonder what the economy 7 tariff holds for us in the future. We have obviously invested in equipment to take advantage of this lower rate which if it continues to rise at these levels will totally change our lifestyle.
I wonder if anyone else has found this issue?

CSI_Yorkshire

Oldfielder said:

We’re with Scottish Energy and are heavy economy 7 users having a night storage cooker, storage radiators, and immersion heater for hot water. We are on the Standard Variable rate and have been informed that due to the reduced price cap the daytime rate is being reduced but the economy 7 rate is being increased yet again this time by about 13%. This means that whilst most will see a reduction our monthly bill will increase by another £25 or more. It’s very puzzling and a worrying trend which makes me wonder what the economy 7 tariff holds for us in the future. We have obviously invested in equipment to take advantage of this lower rate which if it continues to rise at these levels will totally change our lifestyle.
I wonder if anyone else has found this issue?

Extremely common, and mostly to do with how the government forced suppliers to do the EPG discount (the removal of which has coincided with the new price cap).

dunstonh

It’s very puzzling and a worrying trend which makes me wonder what the economy 7 tariff holds for us in the future. 

It may be that the E7 option is not viable for you.  Or it may be that you need to look at other suppliers to see if their pricing ratio suits your usage better.

I wonder if anyone else has found this issue?

Different suppliers have different pricing models for E7.   Think of E7 pricing a bit like a see saw.    If you lower one side, the other goes up.     Different suppliers have different amounts they lower the peak rate.  

There is no one-best supplier for E7 as it very much depends on your night/day ratio. 

Scot_39

The 17p epg discount has just come off your day rate and night rate.

Scottish Energy - do you mean Scottish Power ?

Applied equally from Apr if not before.

And Scottish Power ?  may even have adjusted the day night rate balance to cope when it was 33p in Jan.

Edf night rates almost halved in some regions when the 33p came in Jan, but bounced back in Apr.  Its been really disruptive.  People who were once breaking even on e7, found they weren't. 

Other high night users jumped supplier to get sub 10p night rates with them ( but higher day rates). Many not to happy when bounced back to 14-17p etc.

E7 isn't a simple level playing field.  Whilst most SR rates were almost fixed under EPG - E7 deals and switching for price - remained common - depending on day night split.

Check your use warrants staying on E7  - it should with nsh etc.

And then check other suppliers.

Edf Octopus are 2 large suppliers publish regional tables - you don't even need a quote. Google or search posts here  E.g. edf 

https://www.edfenergy.com/sites/default/files/dm1903_standard_variable_deemed_and_welcome_rate_card._for_customers_with_standard_e7_smart_payg_and_prepayment_meters.pdf

EssexHebridean

Definitely worth shopping around for those on E7 - your individual use can make a real difference to which company works out most cost effective. 

I'm with Octopus - they've taken pretty much the entire drop off the day rate for us, with the night rate staying the same - at this time of year I don't mind too much as we're about 50/50 day/night - it's a different story in the winter months though! 

uberzoldat

I've recently moved in to a place with an economy 7 meter and was put on a dual rate tariff. My current supplier (OVO) only offers me dual rate tariffs.

I'm just about to switch to British Gas though as they will offer me a single rate which is going to work out cheaper for me. Most of my energy usage is during the day. I ran a comparison on monthly cost for usage on the June British Gas prices against all the other (much cheaper) rates from August last year and it still would have been cheaper for every month to have been on a single rate with the exception of one month which was a negligible difference.

On paper it sounds great to have discounted rate for E7, but my reality was that I just don't use that much off peak.

Scot_39

Many have found e7 no longer suited - even some who marginally did benefit before.

The forums and media articles were seeing those who maybe hadnt been checking for a while do just that - especially after energy charities analysis of the Jan changes meant an average 7% increase for E7 users - with some switching to SR..

That 7% despite others with heavy off peak with edf in some regions saving a ton as their off peak rates dropped sub 10p - but then many bounced back in April. And whilst EDF night rates dropped - some other suppliers saw night rates jump 2p+ / 15%+ in Jan.

It's been a very fluid period for e7 despite the EPG almost fix for sr.

Some of it actual SR vs MR Ofgem per kWh unit rates - they are not the same - a common misconception - but in my region the average unit rate closed c2.3p on SR rate in Jan for instance - driving the E7 rise. 
And some of it EPG discounts - with mixed application of discounts at some suppliers, fixed at others, until all forced to fix in April.

It's good to take a long view on these things - so good to see you have looked over several periods - reviewing periodically.

That's why I said review use warrants, and then check if worth swapping.