Fixed price deal tariff being increased

Umiamz

QrizB said:

I'm waiting to find out what the OP is told by Octopus.

From the Twitter post linked to earlier, it seems there are several customers in the same boat so it's not an isolated issue.

Agreed. However, it is entertaining watching the kids bickering in the meantime 

savers_united

What is also interesting with this tariff is that it was pulled quickly, launched in July and pulled the same month. 

The rates at the time (back in July) were not that great and was almost in line with Octopus flexible tariff at the time, so a bit of a strange tariff really, only saving an average £40 over the flexible tariff, you can understand why many would of chosen it thinking it was a fixed tariff, as fixed tariffs were these kind of rates, my parents are in their late 70s, pretty switched on, able to use a computer, online account etc, but like the OP the attraction for them with this tariff was the CS agent mentioning the fix to 2023, they have never before been on a variable tariff preferring a fixed rate especially through winter. 

Ultrasonic

savers_united said:

What is also interesting with this tariff is that it was pulled quickly, launched in July and pulled the same month. 

The rates at the time (back in July) were not that great and was almost in line with Octopus flexible tariff at the time, so a bit of a strange tariff really, only saving an average £40 over the flexible tariff, you can understand why many would of chosen it thinking it was a fixed tariff, as fixed tariffs were these kind of rates, my parents are in their late 70s, pretty switched on, able to use a computer, online account etc, but like the OP the attraction for them with this tariff was the CS agent mentioning the fix to 2023.

In hindsigtht though it's now looking like a good deal  .

worrywart_3

Ultrasonic said:

jimjames said:

Ultrasonic said:

worrywart_3 said:

It’s too complicated and ambiguous a tarrif for the layperson it’s fixed as in fixed at a percentage below cap but saying the unit price won’t change is wrong because if will within those parameters.

Most people seem to cope OK with the concept of tracker mortgages so if there is an issue I see it more as just being because it's a new one in the energy sector. The particular example here may simply be an isolated error rather than what all customers received too.

But a tracker mortgage is different to a fixed rate mortgage and a bank couldn't describe it as fixed. More like a cap and collar rate I guess but that really isn't explained in the screenshots above.

You've missed my point there. I was saying that in the mortgage sector we have fixed, variable and tracker products and that it is reasonable to have the same in the energy sector. I was not saying that a product that is essentially a tracker (or otherwise constrained variable product) should be called fixed, or that the documentation that Ocotpus have sent out is anything other than an error.

Edit: note I was responding to a post saying the product was too complicated for 'the layperson' to understand and therefore should not have been sold. I don't agree.

Bit do tracker mortgages have a cap to complicate the issue.

op any update from octopus 

Ultrasonic

worrywart_3 said:

Ultrasonic said:

jimjames said:

Ultrasonic said:

worrywart_3 said:

It’s too complicated and ambiguous a tarrif for the layperson it’s fixed as in fixed at a percentage below cap but saying the unit price won’t change is wrong because if will within those parameters.

Most people seem to cope OK with the concept of tracker mortgages so if there is an issue I see it more as just being because it's a new one in the energy sector. The particular example here may simply be an isolated error rather than what all customers received too.

But a tracker mortgage is different to a fixed rate mortgage and a bank couldn't describe it as fixed. More like a cap and collar rate I guess but that really isn't explained in the screenshots above.

You've missed my point there. I was saying that in the mortgage sector we have fixed, variable and tracker products and that it is reasonable to have the same in the energy sector. I was not saying that a product that is essentially a tracker (or otherwise constrained variable product) should be called fixed, or that the documentation that Ocotpus have sent out is anything other than an error.

Edit: note I was responding to a post saying the product was too complicated for 'the layperson' to understand and therefore should not have been sold. I don't agree.

Bit do tracker mortgages have a cap to complicate the issue.

I was drawing a parallel between the Bank of England base rate and the energy price cap being used as to determine costs to consumers who have signed up for a particular product. My simple point being that consumers are capable of grasping the concept rather than arguing that most are somehow to incapable of doing so.

The issue here is Octopus describing the product as fixed (in some places or cases), not the product itself.

savers_united

Ultrasonic said:

savers_united said:

What is also interesting with this tariff is that it was pulled quickly, launched in July and pulled the same month. 

The rates at the time (back in July) were not that great and was almost in line with Octopus flexible tariff at the time, so a bit of a strange tariff really, only saving an average £40 over the flexible tariff, you can understand why many would of chosen it thinking it was a fixed tariff, as fixed tariffs were these kind of rates, my parents are in their late 70s, pretty switched on, able to use a computer, online account etc, but like the OP the attraction for them with this tariff was the CS agent mentioning the fix to 2023.

In hindsigtht though it's now looking like a good deal  .

It is, but for a similar rate you could have fixed for a year or 2 back in July, people are now getting informed of a higher rate on a tariff they thought was fixed, putting it above that of a fixed tariff in July and highly likely to go even higher in April, so they will be well out of pocket versus a July fix tariff.
And It looks on the face of it they have a good case for thinking it was fixed, maybe Octopus also realised this and were quick to pull the tariff. I would have thought the number of customers on this tariff are low as it was only made available for a few weeks and was not a hugely attractive rate at the time, plenty of other tariffs offered better rates. So maybe realising their mistake and confusion they may just take the hit and honour it, an interesting one to follow. 

Ultrasonic

 So maybe realising their mistake and confusion they may just take the hit and honour it, an interesting one to follow. 

My guess, as I suspect doing anything else puts them in a position that is very hard to justify. Like others I am interested to find out.

worrywart_3

Have octopus cleared this up for you yet?

HAJ9

I have exactly the same issue with Octopus Price Promise July 2021 v1. All my welcome emails say unit price is fixed yet I have an email saying prices are increasing in November. I have emailed them and phoned them but cannot get an answer. How many others are affected I wonder? Please keep me updated with any progress you make and I will do the same.

MWT

HAJ9 said:

I have exactly the same issue with Octopus Price Promise July 2021 v1. All my welcome emails say unit price is fixed yet I have an email saying prices are increasing in November. I have emailed them and phoned them but cannot get an answer. How many others are affected I wonder? Please keep me updated with any progress you make and I will do the same.

Just to add to the collective knowledge here, how did you end up on that tariff in the first place?

Was it suggested to you during a phone call, or did you find it on the Octopus website?