Should I Switch

ChainsawCharlie

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AcerBen

I would leave it - at least you're going to get through the winter on a nice low rate (provided Octopus survives!)

Surely prices will start to come down again by next Spring too.

dbks

ChainsawCharlie said:

Hi I am with Octopus Energy for dual fuel its the
Exclusive Octopus 12M Fixed tariff and ends on February 4th 2022

Thanking my lucky stars for being in this Tariffand that I have 4 more months left.

I asked them as pure speculation for another quote, and the price has increased from £1,399 per annum to £2, 433 per annum!! This would be a 24month fixed.

Now  I guess I would be crazy to switch into this new fixed tariff given it is so much more expensive, but my question is, could this go even higher if I switch in February when my current tariff ends.  It looks like any October increases will be factored into my £1433 new quote, but maybe prices could rise again...who knows, we know they will in April.

So is it going to be a good move to forego my current cheap tariff, and fix now in the understanding it could climb even higher?

Interested to know your views folks

You need to look at your usage.
An average user is considered to consume 12000kWh gas and 3100kWh for electricity (as far as the price cap is concerned)
You seem slightly above an average user. (but could be significantly more, depending on what tariff you currently are on)
An average user will have their price capped at £1277 until April next year on a default tariff, and then that should be expected to rise to £1500-£1600pa,

Martin's suggestion is to hold onto every cheap unit you can for as long as you can in these strange times.

Bailing out of a 12m fix, just 6 months into one is rarely a good idea unless you see prices drop significantly. At times of rising prices, I don't see why you would even contemplate it.

Astria

You are hitting winter months on a cheap tariff so you'll be daft to switch now.

Prices could go higher by next February, but typically your consumption will be less then as you'll be entering spring, not winter.

Crdw

Hug onto that fixed deal as long as you can.
Re-assess next year and see where we all are.

Astria

None of that makes any sense without stating the actual kWh rates, the monthly charges are meaningless.

Ant555

ChainsawCharlie said:

New proposed tariffs to kick in when my current one ends in February 22

1) Do Nothing and pay £159.43 per month

2) Go onto their Standard Fixed Tarif and pay £296.54

3) Go onto their Fixed Loyalty Tariff and pay £219.09 per month.

All tariffs fixed for 12 months, no exit fees.

So the crux of my question is, do I fix or not.

Thanks for any advice, greatly appreciated.

Assuming your supplier knows your consumption history and these figures are based on it...

Option 1 may be the cost based on the current cap but you will probably only pay that for 1, possibly 2, months at the end of your deal  (march/april) before it will rise.   What will it rise to? - if the rate rises the projected 50% then it might rise around £60? That takes it close to the £219 fix offer  - the variable rate might go up again October 2022 and the 219/month fix might seem cheap by then.  Nobody knows.

You may have to decide if the fix £219/month is worth the risk for the protection against rises  for 12 months - if no exit fees then you could always exit in October if the prices reduce. From April onwards, you might be paying close to this anyway on the variable rate.  

Whatever happens, your monthly bill WILL be rising sharply in April by a figure many of us have never had to contend with before.  

There does appear to be a news story today about financial help for energy companies but I suspect this might limit but not stop the inevitable rises.

Just my opinion, hope this helps

meinnit

Can you accept the new fix now to start when the current fix ends in Feb? That way you could lock in the rate today and if fixed prices rise further you're protected otherwise cancel fee free

meinnit

ChainsawCharlie said:

meinnit said:

Can you accept the new fix now to start when the current fix ends in Feb? That way you could lock in the rate today and if fixed prices rise further you're protected otherwise cancel fee free

Hi, yes I can fix now, and like you say at least I can always back out.  So think I will go for that.
I suppose reason I posted message to start with was because Martin has been saying dont fix, but maybe that's old news now.

That advice applies for someone starting a new fix today and having to pay the very high rate over the winter period. Your situation is different where the fix starts when winter is almost over and you can back out with no penalty

meinnit

I would confirm with Octopus that the rate will indeed start in Feb and not straight away

rogerc446

Loyal Octopus 12M Fixed December 2021 v2 is no more (i.e. it's a 'historical tariff' now)

Electricity Unit rate: 26.97 p/kWh

Standing charge: 24.01 p/day

Gas Unit rate: 7.34 p/kWh

Standing charge: 26.1 p/day

It's now 
Loyal Octopus 12M Fixed December 2021 v3

Electricity Unit rate: 28.02 p/kWh

Standing charge: 24.01 p/day

Gas Unit rate: 8.35 p/kWh

Standing charge: 26.1 p/day

Based on my calculations, if I was able to take them up on this tariff (which I can't) - it's gone from £223 to £242/month