2026Q4 price cap: electricity single rate v. multi-rate

Ildhund

My fixed tariff ran out at the wrong time, so I'm currently on my supplier's SVT which looks reasonable until the end of the year. However, when poring over Ofgem's tariff tables, I noticed a strange development. I don't do gas, so I'm only interested in the rates for electricity. Just to make sure it wasn't just living in the East Midlands that was causing hiccups in the price-cap's progress, I compared the GB average rates.

I haven't before taken much notice of the differential between single-rate and multi-rate tariffs, although I was aware that there was one, I assumed to cover the extra costs involved. Bearing in mind that there is a common perception of greater financial vulnerability of those with night-storage heaters and multi-rate meters, I find it a bit surprising to see that the multi-rate capped rates are increasing in general, while single-rate ones (primarily those with access to, say, gas heating) are falling.

The comparative costs use typical annual consumptions, on the one hand for the low user on a single-rate tariff (1600 kWh/year) and on the other hand for the high user on a multi-rate tariff (6100 kWh).

I'd be interested to hear the justification for the increasing differential if anyone has any insight.

molerat

Why has your multi rate only got … er …. a single rate ?

squirrelpie

How is the usage on the multi-rate divided between the multiple rates? That makes quite a difference I would think.

Ildhund

https://forums.moneysavingexpert.com/discussion/comment/82143274#Comment_82143274

Ofgem only sets the cap. It's up to suppliers to decide the rates, like peak and offpeak for Economy 7.

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82143340#Comment_82143340

Exactly this.

There's a link in my signature to a thread where we discuss this in detail.