Not really relevant to this symptom, but I had dodgy hot water when I moved into the new place back in december.
1) I called the electricity provider to confirm that the off peak relay was working correctly (or you can visually check it when it flicks over in the wee hours of the morning)
2) You can isolate power to the unit and test the continuity and resistance of the element with a multimeter. I'm not sure what value you'd be looking for, but the higher resistance means that it will heat up when power is supplied... Open loop (ie one pole of the element is not electrically connected to the other)- means that it's FUBAR. Elements can be replaced in some units, but YMMV.
3) I found that the wiring to the element was corroded and only hanging on by a few strands. Resoldered it on, and all was good again.
4) I threw a new thermostat in it, just to be sure. About 25 bucks from Reece plumbing, upon supplying make and model of the unit.
I dare-say, having a weak or corroded connection at the element could be a cause of a poor performing element, and hence lower temp hot water. Worth some thought.
-Mitch
'El Burro' 2012 Defender 90.
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