Octopus Tracker

bristolleedsfan

Chrysalis said:

Appreciate the link.

This bit is interesting for me.

It’s been a long time since Tracker’s standing charge has changed but since then, regulation (which we opposed) has moved various energy costs from unit rate to standing charge. We kept Tracker’s standing charge lower for as long as we could, but we’re now updating it so it’s the same as all other Octopus tariffs.

Not claiming to be an expert on how these costs are paid by the suppliers to the grid and regulator on non SVR tariffs, I assumed it was a fee per customer and the supplier could choose how they got that revenue, Octopus have confirmed they opposed the Ofgem manipulation of moving costs from unit rate to SC.

https://www.ofgem.gov.uk/sites/default/files/2023-11/Standing Charges - Call for Input.pdf

Telegraph_Sam

My interpretation of the "rules in the box" is that Ofgem appear fairly laid back as to what combination of SC and unit rate is chosen by any supplier. Less clear is what part any price cap plays in a unit vs SC discussion assuming that the supplier has a command of basic maths. Unless what is meant is that the cap limits the degree that the SC can be absorbed by the unit charge

masonic

Telegraph_Sam said:

My interpretation of the "rules in the box" is that Ofgem appear fairly laid back as to what combination of SC and unit rate is chosen by any supplier. Less clear is what part any price cap plays in a unit vs SC discussion assuming that the supplier has a command of basic maths. Unless what is meant is that the cap limits the degree that the SC can be absorbed by the unit charge

It cannot be hidden in the unit rate of a price capped tariff such that a heavy user would in effect be charged more than the price cap. If the tariff is not price-capped, then they have more flexibility.

Telegraph_Sam

A heavy user - by my logic - is just charged for the greater no of kWh's @ the capped price. Uncap the price then as you say the unit charge can absorb more of the SC. I suspect however that this is of academic interest only for most users. Who just want the most economic bills.

spot1034

When I looked at wholesale gas prices during last autumn - during the assessment period for the present price cap - there was a massive discrepancy between pricing for the period we're now in and that for immediate delivery. I look again now and this has  changed with that discrepancy between the short and medium term much narrower, in fact almost gone. It still bobs around, with prices being affected this week, I suspect, by world events as much as anything, but that massive discount on short term prices which must go a long way to explain the cheapness of tracker right now is surely a phenomenon that won't last. When the SVT falls sharply later this year to reflect this change, tracker prices will not as they're already at the lower level. 

Am I wrong about this? I appreciate that the SVT does carry some additional cost due to hedging, and of-course tracker will still sometimes  reflect a surplus due to high wind output and at other times be more expensive when supply is tight, so there will always be times when it is bound to be cheaper but it surely won't be the case that whatever the situation tracker will always be more or less guaranteed  to undercut the SVT as seems to be the case at present?

Telegraph_Sam

We might get some kind of an indication (only) by looking at gastracker's long term price history. It's unrealistic to demand that the tracker price never ever exceeds the price cap. What's reasonable to ask is that there should be an advantage in the medium / longer term.

Qyburn

Telegraph_Sam said:

I have somehow managed to miss the boat as far as "the  new formula" is concerned. I am on Nov 22 v1 both fuels. If the SC's are unchanged (??) is it then the "transparent" link between the wholesale market price and the Tracker retail / consumer price per kWh that is affected? (Rather than the "market price" itself)
Will this then become "Jan 24 v 1" that anyone and everyone could be switched onto with only the minimum notice?

The exact formula depends on your region. For me the Nov 22 v1 formula is, where "W" is the wholesale price ..

• Electricity unit charge: (W * 1.1990) + 7.8629 p per kWh

The new formula which I may at some point be transferred to is ..

• Electricity unit charge: (W * 1.1990) + 10.5180 p per kWh

It's an increase of just over 2.6p per kWh. What that equates to as percentage depends on the overall price on a given day. 

Standing charge will also increase and become the same as for SVT.

https://octopus.energy/tracker-faqs

Telegraph_Sam

..and this will no longer be Nov 22 v1 and we will be "invited" to subscribe to its successor

MultiFuelBurner

Telegraph_Sam said:

..and this will no longer be Nov 22 v1 and we will be "invited" to subscribe to its successor

Except I suspect those with fixed end dates already on their November 2022 v1 tariff.

Sadly not us but one of referees has.

mmmmikey

The official line on this as per the Tracker FAQ on the Octopus website is:

"Due to regulatory requirements, we'll likely need to update existing customers’ agreements too, but we’re not doing it right now. We'll review this in early 2024."

(The bold is theirs, not mine)

Two things occur to me from this. Firstly, the use of the word "likely", meaning that they'll probably have to do this but it's not certain. Secondly, they say they are going to "review this in early 2024" which is not the same as saying it's going to change.

So as far as I can see nothing is set in stone yet and it's quite possible that it may be some time before things actually change. I know that some of you have spoken to Octopus (including you, @MultiFuelBurner IIRC?) which adds weight to the expectation of a change in the near future. But what exactly did they say? Is it possible that what you got was just a customer service advisor's interpretation of the above official line rather than anything more specific?

In my case it's probably academic as I expect to move back to Agile on 1st March, but it will still be interesting to know. Of more siginifcance to me is any change to T's and C's that make it harder (or easier) to switch between Tracker and Agile but as far as I know nothing is changing there (or rumoured to change)?