Gas tariff - switch and ditch or stick?

rjmachin

I am currently on the following tariff's for my energy:
Electricity: Octopus Go Faster (20:30-01:30@ 5.5p per kWh, 01:30-20:30 @15.64p  per kWh)
Gas: Octopus Tracker (average from Bills: Jun: 3.98p per kWh, Jul: 4.69p per kWh, Aug:5.40p per kWh - all inc VAT)

I am happy with my electricity, the cheap evening rate is saving me quite a bit so that's fine.

Octopus have now put a cap on the Tracker of 6p per kWh (in the next few days)

My gas usage over the last few months has been minimal because the heating is turned off, so its just for hot water and showers currently.

I am now not sure whether to switch my gas to another supplier (Octopus have a 5p per kWh tariff, but that quite high), or to stick with the tracker and wait for the wholesale price to come back down to a cheaper price.

It's a difficult decision and probably need a crystal ball to be able to know what will happen.

I used roughly 14,000 - 16,000 kWh per year of gas

I have used uSwitch and Switch/Which? to look for gas tariffs and also found one for EDF:

• SSE Tariff (Online Smart Saver v2 tariff) - 1 year fix - 3.87p per kWh, 24.92p per day Standing charge
• SSE Tariff (2 Year Fix v8 tariff) - 2 year fix - 4.15p per kWh, 26.77p per day Standing charge
• EDF Tariff (Mar24v5) - Fix to Mar 2024 (2 year, 6 months) - 3.985p per kWh, 26.12p per day Standing charge

There are no exit fees for any of them

Would you jump ship or stay put and hope prices normalise?
Would you go for 1 year and switch again to a cheaper fix if they arise?
Would you go for the EDF (longer fix and cheap'ish rates)?

I know its a personal choice, but would appreciate opinions

QrizB

No-one is really expecting the wholesale price to come down until late spring next year. See for example this article from the start of July: https://www.theguardian.com/business/2021/jul/01/gas-supply-crunch-stirs-fears-of-winter-price-hike-in-uk-and-europe

I'd suggest looking at the options of other suppliers. Of the ones you list, SSE if you think prices will drop next year or EDF if you don't. (I took a 2-year fix, FWIW.)

BUFF

If you are prepared to split your suppliers & are happy with a fairly basic but reliable service Zog are usually good for Gas 

rjmachin

BUFF said:

If you are prepared to split your suppliers & are happy with a fairly basic but reliable service Zog are usually good for Gas 

The Zog 2 year fix is for 4.23p per kWh and 1 year fix is 4.297p per kWh so works out more expensive.

Their variable one is cheaper at 3.318p per kWh, but as that is variable, I expect that to rise next month with the rest

niktheguru

Switch and fix ASAP. It's a complete no brainer, particularly if there's no exit fee on the fixed rate tariffs. If tracker all of a sudden strangely becomes cheaper you can then move back to octopus. If you don't, as it starts getting cold you're going to get stung unless you're a very low user. Don't just sit on tracker, it's a mugs game at the moment and prices aren't plummeting anytime soon.

[Deleted User]

rjmachin said:

BUFF said:

If you are prepared to split your suppliers & are happy with a fairly basic but reliable service Zog are usually good for Gas 

The Zog 2 year fix is for 4.23p per kWh and 1 year fix is 4.297p per kWh so works out more expensive.

Their variable one is cheaper at 3.318p per kWh, but as that is variable, I expect that to rise next month with the rest

The intellectual challenge here is trying to get one’s mind round the fact that in my region Octopus is offering gas at 3.32p/kWh (flexible tariff) but the 2 year fix price is 5.08p/kWh. This suggests a massive % increase in Year 2.

That said, Agile and Tracker now only work for those whose energy use is outwith the norm. I was on Tracker gas a year ago and I was paying just over 2p/kWh. I switched a month or so ago and got a 2 year fix at 3.19p/kWh. Those who have not monitored the changing market are in for a big shock when they look to renew. As suggested above, with high wholesale gas prices; the shutting down of many gas production fields due to COVID and the Government’s decision to close down much of our on island storage, we are at the mercy of the markets.

The high price gas would suit the Government’s Net Zero agenda were it not for the fact that yesterday nearly 50% of our electricity was generated using gas.

QrizB

[Deleted User] said:

rjmachin said:

BUFF said:

If you are prepared to split your suppliers & are happy with a fairly basic but reliable service Zog are usually good for Gas 

The Zog 2 year fix is for 4.23p per kWh and 1 year fix is 4.297p per kWh so works out more expensive.

Their variable one is cheaper at 3.318p per kWh, but as that is variable, I expect that to rise next month with the rest

The intellectual challenge here is trying to get one’s mind round the fact that in my region Octopus is offering gas at 3.32p/kWh (flexible tariff) but the 2 year fix price is 5.08p/kWh. This suggests a massive % increase in Year 2.

... or as soon as next month, given that Octopus only need to give 30 days notice to increase their Flexible rates.

bristolleedsfan

Dolor said:

rjmachin said:

BUFF said:

If you are prepared to split your suppliers & are happy with a fairly basic but reliable service Zog are usually good for Gas 

The Zog 2 year fix is for 4.23p per kWh and 1 year fix is 4.297p per kWh so works out more expensive.

Their variable one is cheaper at 3.318p per kWh, but as that is variable, I expect that to rise next month with the rest

The intellectual challenge here is trying to get one’s mind round the fact that in my region Octopus is offering gas at 3.32p/kWh (flexible tariff) but the 2 year fix price is 5.08p/kWh. This suggests a massive % increase in Year 2.

As you know Octopus flexible rate is limited by the cap, providers can charge what they like for fixed rates.,Octopus has one of the most expensive fixed gas rates. Octopus charging same rates on 1 year fix as 2 year fixed, existing customers have been getting renewals 1 year fix by default, same rates as 2 year fix.

The good thing about threads like this is Octopus customers can see how expensive Octopus fixed rate gas is compared with both larger and smaller suppliers and should either change/stay on flexible or switch gas elsewhere,

Until 1 April 2022 Octopus flexible gas kwh rate will not exceed 4.04pkwh/24% less than Octopus 1/2 year  fixed rate gas and will probably be lower than that based on my region

Up until middle of July there was hardly any difference between Octopus fixed and Octopus variable most Octopus customers will be on fixed rate tariffs

Only relevance about Octopus fixed gas rates is as you have said more than once, it is for individual customers who prefer fixed rate tariffs to decide if they happy to pay much higher than elsewhere for Octopus fixed rate gas to subsidise better off minority

9 September at 8:20AM

Dolor Forumite 1.6K Posts

   

"As I have posted before, I think that Octopus is slowly but deliberately moving away from the supply of gas. The Company’s UK focus is now very much on renewable energy; technology; heat pump R&D and production, and innovative time-of-use electricity tariffs. Their CEO is also on record as saying that the price of gas has to rise to encourage people to move across to heat pumps"

IamWood

I have been with Green for a few years. Now I am thinking of leaving due to the latest price hike and the difficulty of contacting their customer service. I just started to move my electricity to Neno Reef.

Are there recommendations for gas-only suppliers? I'm looking at Zog Energy. Is it any good?

Thanks!

[Deleted User]

IamWood said:

I have been with Green for a few years. Now I am thinking of leaving due to the latest price hike and the difficulty of contacting their customer service. I just started to move my electricity to Neno Reef.

Are there recommendations for gas-only suppliers? I'm looking at Zog Energy any good?

Thanks!

Zog is a very small gas only supplier with, I think, 7 employees. If you want a ‘bells and whistles’ website etc then look elsewhere. If you want a supplier that emails you a bill each month (c. 8th) and one that responds quickly to emails then Zog should be on your short list. Zog can access and bill using SMETS2 data.

bristolleedsfan

IamWood said:

I have been with Green for a few years. Now I am thinking of leaving due to the latest price hike and the difficulty of contacting their customer service. I just started to move my electricity to Neno Reef.

Are there recommendations for gas-only suppliers? I'm looking at Zog Energy. Is it any good?

Thanks!

Cheapest gas only fixed rates with no exit fees are shown in O/P, Zog fixed rates currently more expensive with exit fees