Comparing Economy 7 and Price Cap

BendyTaffies

Hi all, 

My Sainsbury’s Energy 2 year fix is coming to an end, and I’ve been offered a loyalty tariff. However, as I’m on an Economy 7 tariff, this is quite hard to compare against the Price Cap. Is there a way to know whether it’s a good deal vs the Price Cap? 

Day: 37.70445p 
Night: 12.75015p
Standing Charge: 51.51p

Putting the day rate and standing charge into the MSE calculator says it’s a bad deal, but this is to be expected as it’s not factoring in the cheaper night tariff. 

Is there a way to calculate the price cap on an economy 7 tariff? 

Many thanks

CSI_Yorkshire

What do you mean "compare against the price cap".  You can only compare one tariff against another.

What is Sainsbury's variable E7 tariff in your area?  Compare that against the tariff you are offered.

MattMattMattUK

It will depend on your peak/off-peak split as well.

dunstonh

However, as I’m on an Economy 7 tariff, this is quite hard to compare against the Price Cap. 

You wouldn't compare because Economy 7 tariffs are also subject to the price cap.

Is there a way to know whether it’s a good deal vs the Price Cap? 

That doesn't make sense as e7 tariffs are still subject to the price cap.     Or do you mean comparing E7 to single rate?

Putting the day rate and standing charge into the MSE calculator says it’s a bad deal, but this is to be expected as it’s not factoring in the cheaper night tariff. 

The MSE calculator is rubbish.  Its designed for single rate only.     It will give a garbage result if you try and use it for multi-rate.

Is there a way to calculate the price cap on an economy 7 tariff? 

You dont need to calculate the price cap on E7 as its done for you on all but fixed rates.

amanda1024

Average tariffs and the price cap are here: https://www.moneysavingexpert.com/utilities/economy-7/ - but this doesn't take account of regional differences. Although you can assume your supplier's standard rate is at the price cap, there's a bit of variability between how the cap is split between day and night (unlike with non-E7 where both the standing charge and unit rate are generally set by the cap). So if you know what your day/night usage split is likely to be you can hopefully see which tariff is likely to offer you the best value. 

Scot_39

Putting the day rate, into any calculator vs sr is meaningless.

Comparing the day rate or the night rate alone vs sr is meaningless.

Even comparing the night rate vs gas rate for heating costs is strictly meaningless - unless you have a very very high annual night rate use  - as you pay a premium vs sr electric on day use to get that cheaper night rate.

E7 is a multirate tariff - it is not covered by the standard - oops most widely publicised - Ofgem price cap - the much publicised £2074 - which is for duel fuel - gas and single rate electric.
But there is also no one price cap - their are actually a set - per supply region and per payment method (direct debit, standard credit and prepay).  The much publicised £2074, the EPG £2500 etc ones normally quoted a mythical regional average of DD rates.
And as the amount of energy to be included in that total is dropping c4% come Oct - simple total comparisons are no longer that meaningful - so goes back to standing charge and unit rates for true comparison anyway.

Ofgem do produce a whole seperate series of caps for multirate electricity - a slightly different standing charge pa and total (for 4200kWh) electric - but operators are allowed to change the balance between peak and off peak rates to achieve that.

And they do - and at least some do so very differently - across the supply regions.  So within that Ofgem price cap 10p vs 45p, 15p vs 40p and 25p vs 35p are all potentially legitimate splits.

And note the average MR price is not the same as the single rate price - and the difference changes regularly - the difference changed over 2p in Jan in my region, and saw e7 night rates with some suppliers (including EOnNext who supply Sainsburys) jump 15%+ due to EPG discount calculations (based solely or at best very heavily on SR cap pricing)

The only valid comparison of e7 vs SR is therefore not on headline sr based caps or tables based on them or sr kWh rates.

As strictly all that matters re SR pricing is your personal average e7 price with your supplier at your use, with a different supplier in your region with your use if willing to swap vs SVT SR in your region - and that to decide on whether e7 is still cheaper for your split than sr.

And the total price you pay is always heavily dependent on your off peak vs peak usage ratio.
If its high (cf Ofgems pricing model c42% for e7) you might prefer an aggressive split with cheaper off peak rates.

So if want to stay e7 basically it really comes down to you getting e7 quotes and comparing suppliers.  And for your use split.

At least 2 suppliers publish their full regional and payment method pricing for e7.

EDF at
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

Octopus at
https://octopus.energy/blog/energy-price-cap-july-2023/

All others will give you free no obligation quotes on line.

Don't forget to factor in any nectar point savings iirc some posts said were non trivial - into comparison.


Some posts here suggest BG had a big problem in past with smart E7 - so do a bit of research too if swapping.
And always check your billing afterwards - if swap - as different suppliers and different meters can have different conventions on the order of peak and off peak registers.

And if think a supplier swap is beneficial - try to see if firm has a referral discount system (several including Octopus, and EOnNext who actually supply Sainsburys do) - could save you and referrer typically c£50.

PS Sainsburys were offering others a 1yr fix similar to EOns loyalty v3/v4 series - that were saving a few %.  So if those are your fixed prices - what are the e7 SVT prices ?

Swipe

That looks like a reasonably priced E7 tariff to me. I wish I could get that night rate.

Scot_39

My guess is op in NW if that sc is vat inc. - so does look good cf those 2 table links.

But op needs to check.