Customers on Economy 7 energy tariffs face a shock bill hike next month because of a loophole in government support.
Energy costs will change slightly in the new year when regulator Ofgem raises its price cap to £4,279 a year.
The increase is offset for most by the Government’s Energy Price Guarantee (EPG), which provides a discount on this cap.
Adjustments: Energy costs will change in the new year when regulator Ofgem raises its price cap to £4,279 a year
However, those on Economy 7 tariffs, which give customers a discount if they use energy at night, face a steeper hike.
The way Ofgem calculates the cap on Economy 7 plans is different to other deals. But the discount provided by the guarantee does not take this into account.
In an email to customers, supplier Octopus explained that prices are rising by 37 per cent for Economy 7 customers.
But the discount provided by the EPG is increasing by 30 per cent — leaving a 7 per cent shortfall. Exactly how much bills will rise varies between suppliers.
Economy 7 customers can potentially move to a standard single-rate tariff if they are unhappy with the increase.
