Costs per unit

gospete

I have just switched electricity supplier - from Scottish Power standard variable rate to Octopus 2 year fixed.
At the time, I didn't do a cost per unit comparison, just the projected £/month figure.
For some reason I subsequently decided to a unit comparison for interest - the figures surprised me...

My current unit cost with Scottish Power variable rate is much less than my new Octopus fixed rate.

It is probably apparent that I am new to this switching process but I've got a couple of basic questions.
1. Is it realistic to compare a variable rate with a longer term fixed rate?
2. Because the unit costs on my new fixed rate seem high, is it because Octopus have already factored in the upcoming prices increases? which makes switching less attractive than I thought.

So maybe I'm thinking that switching earlier in the year may have been a better option.

Thanks in advance for any comments or advice.

victor2

gospete said:

I have just switched electricity supplier - from Scottish Power standard variable rate to Octopus 2 year fixed.
At the time, I didn't do a cost per unit comparison, just the projected £/month figure.
For some reason I subsequently decided to a unit comparison for interest - the figures surprised me...

My current unit cost with Scottish Power variable rate is much less than my new Octopus fixed rate.

It is probably apparent that I am new to this switching process but I've got a couple of basic questions.
1. Is it realistic to compare a variable rate with a longer term fixed rate?
2. Because the unit costs on my new fixed rate seem high, is it because Octopus have already factored in the upcoming prices increases? which makes switching less attractive than I thought.

So maybe I'm thinking that switching earlier in the year may have been a better option.

Thanks in advance for any comments or advice.

1. Not really, because your new rate is fixed for two years, where the variable rate is pretty much guaranteed to vary, as its name suggests.

2. Rates have increased dramatically in recent months. IF prices should drop significantly within your new contract period, you can always switch away, but it would have to be worth paying any exit fee associated with your tariff.

Gerry1

1.  Only if your crystal ball is working well.

2.  As (1), you can only guess.

Just compare annual costs based on your annual kWh usage derived from actual meter readings a year apart.

Always ignore all projections and savings claims because they're often unrealistic.

Also have a look at the customer service ratings on Citizens Advice and the 'Add your feedback on energy supplier xxxx...' threads here on the forum.

bristolleedsfan

gospete said:

I have just switched electricity supplier - from Scottish Power standard variable rate to Octopus 2 year fixed.
At the time, I didn't do a cost per unit comparison, just the projected £/month figure.
For some reason I subsequently decided to a unit comparison for interest - the figures surprised me...

My current unit cost with Scottish Power variable rate is much less than my new Octopus fixed rate.

It is probably apparent that I am new to this switching process but I've got a couple of basic questions.
1. Is it realistic to compare a variable rate with a longer term fixed rate?
2. Because the unit costs on my new fixed rate seem high, is it because Octopus have already factored in the upcoming prices increases? which makes switching less attractive than I thought.

So maybe I'm thinking that switching earlier in the year may have been a better option.

Thanks in advance for any comments or advice.

Octopus non Smart Meter fixed rate tariffs are more expensive than many competitors, partly due to people picking them based on reputation rather than doing a full market comparison, currently Octopus 2 year fixed rate tariff comparison site exclusive is more expensive ithan if sign up direct.  Octopus fixed rate gas is at high end when compared to many competitors.

gospete

Thanks for the comments.
When I signed up with Octopus I seem to remember it had 3 meter options, Standard, Economy 7 or Smart Meter.
As I am on Economy 7 I chose that option. The thing is I also have a smart meter but it only allowed me to choose one option!

bristolleedsfan

gospete said:

Thanks for the comments.
When I signed up with Octopus I seem to remember it had 3 meter options, Standard, Economy 7 or Smart Meter.
As I am on Economy 7 I chose that option. The thing is I also have a smart meter but it only allowed me to choose one option!

https://octopus.energy/go/ is S/M tariff i referred to, if it is of interest you would stay on interim tariff e.g the tariff you signed up to until Octopus connect to your Electric S/M which is usually sooner than 14 days after switch completes

https://octopus.energy/go/rates/

Gerry1

Is your smart meter controlling the times that the immersion heater is on (and night storage heaters, if fitted)?  If not and you are using a local timer it's important that it's correctly slaved to the meter's actual switching times.  It's easy for some timers to drift or not to have been programmed correctly.

gospete

My smart meter was fitted a couple of months ago through Scottish Power. Economy 7 timings are controlled via the new smart meter as they were with the old one.

niktheguru

gospete said:

My smart meter was fitted a couple of months ago through Scottish Power. Economy 7 timings are controlled via the new smart meter as they were with the old one.

In that case do your sums and see if octopus go faster may be cheaper for you.
are you on economy 7 because you are electric only and have storage meters?

gospete

Thanks. Yes I am electric only and have storage heaters which are quite old. At times I've been toying with the idea of replacing them with something more efficient. I've seen the Fischer adverts that say they can replace storage heaters but from what I can make out they have very little storage so I wouldn't get the benefit with having Economy 7.

Gerry1

gospete said:

 I've seen the Fischer adverts that say they can replace storage heaters

NOooooo !

Fischer Future Heat UK Ltd - ASA | CAP

Ad Alert - Fischer

Fischer allegations of fraud

https://forums.moneysavingexpert.com/discussion/3516223/fischer-storage-heaters