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Would someone care to try and explain this (Energy Price Cap)

dozstanford
dozstanford Posts: 7 Forumite
Eighth Anniversary First Post Combo Breaker
edited 21 March at 11:23PM in Energy

So today my mother received an email detailing her new prices for G&E for April '26, for the record, she is on Economy 7, uses over a 12 month period, twice as much electricity at night than she does day, and has only one gas appliance, a heater in her front room.

So, the changes are as follows…

Electricity Standing Charge +10%

Electricity Day Rate -22%

Electricity Night Rate +55%

Gas Standing Charge -20%

Gas Unit Rate - 2%

Based on her last 12 months use these changes will result in +£175 electricity and -£30 Gas. This is the single biggest increase of her bill since 2021 and the cap was supposed to be -7%? lower…

This makes no sense to me

Comments

  • molerat
    molerat Posts: 35,974 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 22 March at 12:05AM

    The "average" E7 user with a 58% day and 42% night combined 3900 kWh use will see a reduction in costs. Users outside that pattern will have varied outcomes. For instance using the above figures those in N Scotland will pay £1125 v £1282 currently, using your old and new rates at that usage split and consumption will no doubt also see a reduction. On the plus side off peak use will be reduced over the coming quarter. The 7% reduction is for a dual fuel user which is always the quoted press release figure and is driven by the gas cost reduction.

  • Ildhund
    Ildhund Posts: 881 Forumite
    500 Posts Third Anniversary Name Dropper Photogenic

    You can see all the price cap rates at the Ofgem site, where you'll see that they vary considerably from region to region and by payment method. I couldn't work out which ones match the ones you gave.

    The capped price for customers with multi-rate meters is given in the tables as a single rate which suppliers may not exceed. They are at liberty to apply day and night rates as they see fit, so long as the combined cost isn't higher than the single rate when the night-rate consumption is at least 48% of the total. If the current rates are more favourable than this, e.g. giving a saving for Economy 7 customers if their night consumption is only 35% of the total, the supplier could well be less generous from 1 April and still stay within the rules.

    If you need a detailed explanation, you'd have to say where your mother lives (the first part of the postcode is usually enough) and give the precise current and new rates.

    I'm not being lazy ...
    I'm just in energy-saving mode.

  • Swipe
    Swipe Posts: 6,162 Forumite
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    I'm afraid everyone on E7 with UW is in the same situation.

  • MattMattMattUK
    MattMattMattUK Posts: 12,771 Forumite
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    Why gas and E7? The point of E7 is for storage heaters and a hot water tank overnight, but it she has gas then she would not need that.

  • MWT
    MWT Posts: 10,958 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    edited 22 March at 9:28AM

    she is on Economy 7, uses over a 12 month period, twice as much electricity at night than she does day,

    Ignore the 12 month situation and see what the balance is over April - September, that has a lot more relevance for the next two quarters than what she does over the colder months of the year…

    Many suppliers have a different balance depending on the season and this shift is actually positive for most as they use a lot less for heating at night over the next 6 months so they benefit from the lower day rate.

  • QrizB
    QrizB Posts: 22,566 Forumite
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    Why gas and E7? The point of E7 is for storage heaters and a hot water tank overnight, but it she has gas then she would not need that.

    Per the OP, she:

    has only one gas appliance, a heater in her front room.

    Ditching E7 would mean installing a full gas heating system.

    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Kirk Hill Co-op member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 35 MWh generated, long-term average 2.6 Os.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • Alnat1
    Alnat1 Posts: 4,158 Forumite
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    Is her property rented or owned? If it's owned, might be worth considering having the gas capped, so no standing charge. She could used an electric heater in the front room when she needs a little heat boost.

    Barnsley, South Yorkshire
    Solar PV 5.25kWp SW facing (14 x 375) installed Mar 22 
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  • QrizB
    QrizB Posts: 22,566 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper

    Ignore the 12 month situation and see what the balance is over April - September, that has a lot more relevance for the next two quarters than what she does over the colder months of the year.

    Yes, there's going to be two more price cap changes (July and October) before winter 2026 arrives.

    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Kirk Hill Co-op member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 35 MWh generated, long-term average 2.6 Os.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • Scot_39
    Scot_39 Posts: 4,561 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 22 March at 11:30AM

    some folk with certain suppliers are seeing not only thd cap change but suppliers rebalancing their peak and off peak rates.

    ofgem only set a total - a weighted average price if you like [the cap based on 58% day vs 42% night market pricing iiirc]

    so currently some e7 suppliers in some regions are charging very low off peak but much higher peak than others - UW for instance have a region c6p off peak another c8p (but maybe c40p peak to balance), whereas other suppliers have c15p off peak (but only c32p peak).

    uw have changed their balance so now charging c10p and c3xp - the others mighg have applied the same cap equally so c12p and c30p.

    [edf did tge same about 4 yrs ago - just sub 10p off peak - in a few regions - it only lasted 6m in some regions maybe a year in others - long enough in one region for fixes to become available - sk e saw jumps ftom iirc c9p to c16p - a normal rare at time elsewhere.]

    you need to not look at percentages but absolute changes and absolute rates.e

    1p on 6p or 8p massive %, 1p on 30p or 40p tiny. Its at best misleading, at worst stressing you out.

    The budget supposed £150 - change was 3.5p inc eco for suppliers in scheme, 2.6p without (fuse, ecotricity etc)

    if you take the for simplicity average of day and night rate prices beforecand after you will see it should have dropped.

    as it did when i checked tge rates for tge 6p→10p rate hike UW user..

    As above off peak use tends to be very seasonal - the 6p rate might work well in winter, the 4xp peak rate might work very badly in summer, thd 3xp revised balance benefiting many - especialky in single households not using as much off peak for hot water.

    And at 66% annual you might find its still better to be on the c10p type deap than tbe 12p deal elsewhere.

    Coming off a killer bargain deal often leads to such complaints, in reality where gratitude is due for a supplier having given access to really cheap rates for winter. Think of what was saved cf normal supplier rstec balances at time of largest use, not whst your now losing at times of generally much lower use.

    With luck you might find one or other suppliers return to steeper balance - lower off peak, higher peak, than ave supplier balancing for next winter.

    E7 rates have always been fluid that way - you need to constantly review in light of your own day night split when far from typical presumed mix (42%) and look how suppliers are balancing their offers.

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