Octopus Tracker

QrizB

Chrysalis said:

The question is, why does there have to be a cost?

My.best guess (and it's only a guess) is that there's a cost not for leaving Tracker but for joining Flexible.

Octopus will have hedged energy for its Flexible customers. Customers joining Flexible from AN Other supplier will be subsidised by the Market Stabilisation Charge, to compensate for the cost of supplying them. But Tracker customers aren't hedged (or not to the same extent) so someone switching from Tracker to Flexible could be quite expensive for Octopus.

Chrysalis

[Deleted User] said:

pchelpman said:

Thanks guys.

Will take those on board but, that said, I haven't the time to dedicate to price watching nor am I someone who takes risks 'stocks & shares' style. 

Also we don't change out energy usage habits at all really.

My further observation is that consumers join these tariffs too late in the day, and leave the moment that prices start to rise. This is why Octopus has said that switching out of Tracker might take up to 2 weeks. There is also a caveat that there is no return to the tariff for another 9 months.

I have been on Tracker since February last year, and I have enjoyed a gas price capped at 6p/kWh since then. My price today is 3.51p/kWh but with drone attacks on Moscow today who knows what Tracker prices might be next week?

Given its only a 12 month fix on the cap, what terms did you renew under this year?  Your post suggests you were renewed on the same terms?

bristolleedsfan

QrizB said:

Chrysalis said:

The question is, why does there have to be a cost?

 Customers joining Flexible from AN Other supplier will be subsidised by the Market Stabilisation Charge, to compensate for the cost of supplying them. 

I must have been having one of my dim days reading Market Stabilisation Charge potentially costs Octopus when consumers switch to any tariff from AN Other supplier.   

https://www.ofgem.gov.uk/publications/market-stabilisation-charge-dashboard

"The Market Stabilisation Charge (MSC) temporarily requires all domestic suppliers acquiring a domestic customer to pay a charge to the losing supplier, when wholesale prices fall considerably below the relevant wholesale price cap index"

Chrysalis

QrizB said:

Chrysalis said:

The question is, why does there have to be a cost?

My.best guess (and it's only a guess) is that there's a cost not for leaving Tracker but for joining Flexible.

Octopus will have hedged energy for its Flexible customers. Customers joining Flexible from AN Other supplier will be subsidised by the Market Stabilisation Charge, to compensate for the cost of supplying them. But Tracker customers aren't hedged (or not to the same extent) so someone switching from Tracker to Flexible could be quite expensive for Octopus.

Thats a very fair point.  So the 9 month thing is reasonable then.

The 2 weeks to leave might be due to what MWT said, so understandable.

System

This thread now includes posts split from: What rates are you being offered by your provider at the moment?.

Qyburn

Doc_N said:

What might well be disputed though is whether a markup of 42% is reasonable, given the huge volumes concerned. That’s an area for Ofgem though. 

As has been explained, that "markup" is purely the result of an artificial calculation someone has done. The price includes covering costs that are unrelated to the wholesale price.

[Deleted User]

Qyburn said:

Doc_N said:

What might well be disputed though is whether a markup of 42% is reasonable, given the huge volumes concerned. That’s an area for Ofgem though. 

As has been explained, that "markup" is purely the result of an artificial calculation someone has done. The price includes covering costs that are unrelated to the wholesale price.

Fair or unfair….. to my knowledge, there is no Octopus Chain Gang going round forcing people to sign up to any of its tariffs.

Chrysalis

What is this about?

https://www.energylivenews.com/2023/05/26/octopus-brings-back-tariff-based-on-wholesale-prices/

Apparently they relaunching tracker, but as far as I am aware it never went away, just the waiting list.

becky004

Little bit of a hijack, but didn't want to start a new thread. My daughter and her partner are on the waiting list for Tracker gas, my understanding is you now have to have a smart meter before you can go on his tariff. However, Octopus went out to fit the smart meter this week and can't, apparently legally they now have to fit a specific bracket, due to the location this bracket cannot be fitted, therefore they wouldn't/couldn't fit the smart meter. They said the wall needs to be knocked down to give them access to fit one (Have never seen anything like it, and I have owned several houses, both new build and old. Basically it is a stone clad internal wall, with a piece of plastic drainpipe in the wall, the only way a meter reading can be taken is to put their phone close to the drainpipe and take a photo with the flash on.) The house is rented so unfortunately they cannot take it upon themselves to start knocking down walls. Given they have not refused a smart meter, it is just not possible to fit one, will this mean they can't go on Tracker? They are with Octopus on Agile for electric.

[Deleted User]

becky004 said:

Little bit of a hijack, but didn't want to start a new thread. My daughter and her partner are on the waiting list for Tracker gas, my understanding is you now have to have a smart meter before you can go on his tariff. However, Octopus went out to fit the smart meter this week and can't, apparently legally they now have to fit a specific bracket, due to the location this bracket cannot be fitted, therefore they wouldn't/couldn't fit the smart meter. They said the wall needs to be knocked down to give them access to fit one (Have never seen anything like it, and I have owned several houses, both new build and old. Basically it is a stone clad internal wall, with a piece of plastic drainpipe in the wall, the only way a meter reading can be taken is to put their phone close to the drainpipe and take a photo with the flash on.) The house is rented so unfortunately they cannot take it upon themselves to start knocking down walls. Given they have not refused a smart meter, it is just not possible to fit one, will this mean they can't go on Tracker? They are with Octopus on Agile for electric.

You will have to ask Octopus.