April price cap. What reduction?

combestrocket

I've just received my email from Utility Warehouse setting out the revised unit rates from April 1st for the price capped Value Economy 7 electricity only tariff I am on. This has been trailed widely as likely to lead to a 6 to 9 percent reduction in bills; Not for everyone it seems, my cost will actually increase by 3%. Am I an outlier or is the situation the same for other Economy 7 users?

Below is an extract of the relevant part of my email from Utility warehouse

Electricity
Current prices until 31 March:
£1,553
New prices from 1 April:
£1,601
Change in cost:
£48 Increase

Energy price change details

The breakdown of your new prices for your Value tariff paid by Direct Debit, which remains below the level of the price cap, are below.

In the following table, the old prices refer to your current rates that will be effective until 31 March 2026, the new rate will take effect from 1 April 2026

Electricity
Standing Charge (per day)
Old	55.449p
New	58.186p
Day unit Rate (per kWh)
Old	41.027p
New	33.367p
Night unit Rate (per kWh)
Old	7.134p
New	9.404p

QrizB

price capped Value Economy 7 electricity only tariff

Utility Warehouse have been rebalancing their E7 tariffs to make off-peak more expensive but peak cheaper. As you're on a price-capped variable tariff, they've taken the opportunity to make this readjustment at the same time as the other changes.

It's unfortunate but not unexpected and is within the rules.

If you had a fixed tariff, you might not have seen this change until the end of the fixed period.

See also this thread:

https://forums.moneysavingexpert.com/discussion/6659442/utility-warehouse-economy-7-prices-april-2026

MWT

https://forums.moneysavingexpert.com/discussion/6660357/april-price-cap-what-reduction

Yes, they can do that, it meets the 58/42 split rules for a multi rate tariff.

lohr500

Same thing happened a few years ago with the very low EDF Eco 7 off-peak rate in my region.

In the Yorkshire region, UW have moved the off peak SVT price from 5.4p to 9.6p.

Whilst it may meet the rules, it doesn't help those who have load shifted a high of their demand to the off-peak hors.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81929005#Comment_81929005

Paradoxically perhaps, it does help those who would have traditionally been on E7 because of their use of night storage heaters as they typically have a strong swing towards a higher proportion of their use being in the day as they no long need the overnight heating charge from Spring onwards.

… but then they would also be better moving to a single-rate tariff for the warmer months anyway…

Swipe

I'm pretty sure this weighted overnight rate change also happened on UW a few years ago

MWT

https://forums.moneysavingexpert.com/discussion/comment/81929279#Comment_81929279

It is a common occurrence at this time of year, many suppliers have done this in the past as it shifts the weighting between the day and night use in line with typical E7 loads shifting away from heating over winter.

Scot_39

https://forums.moneysavingexpert.com/discussion/6660357/april-price-cap-what-reduction

you have the reduction its in the total price you pay based on Ofgem assumed weighting when cost the cap.- or tge nominal weighted average price - not tge individual rates.

its not tge full £150 as govt Ofgem have added £69 on networks in Apr and the £150 was dual fuel. OR RATHER AS 3.54p/kWh electric and 0.35p gas adds up to £133 at cap median tdcvs. 2700, 11500 kWh.

ofgem only set tge total price cap - not the point at which suppliers choose to balance between peak and off peak. 45 vs 5 every bit as valid as mainstream 35 vs 15 say - if fits in tge total cap. The problem is you have switched from an aggresive low off peak to a more normal balance.

Great for those e7 really designed for - using more cheap rate for heating in winter - bad for those charging evs or batteries.

anyone at 58 42 would save - only high off peak users lose ouf whwn suppliers adjust their balance like this.

Just to avoid going to calculator - take a 50:50 user aver kWh rate before 24.1p, aver after 21.4p.

or in other words without the cut both new rates could have been higher still at the same chosen new peak off peak balance point.