Energy news in general

Scot_39

It's in their FAQ for Tracker.

It's not a doubling for  normal tariffs it's a seasonal demand vs supply.

As demand increases and things like solar drops from high output 16 hrs a day to low 8hrs a day - the current daily lows - even extended 1/2 hrly negatives on agile - become increasingly rare.

From Tracker FAQ at 

https://octopus.energy/tracker-faqs/

"Over the warmer months, prices tend to be lower, and we expect them to increase – likely double – when the heating comes on and the sun starts setting earlier."

It's not - repeat not - a prediction that the Ofgem cap will double.

When they opened up Tracker to all the media were quoting June early July rates iirc 8.5 to 20p cf Ofgem /EPG c33p/30p - making it look like a clear bargain - its a warning that's more likely to look more like 17-40p in deep winter.

And to protect against selective dipping in out with seasons or mini pricing crisis like last Dec - when wholesale rates were 4-8× the levels - so a repeat could see 80p+ - in that window for 3 weeks - they warned it can take 2 weeks to leave and then barred for iirc 9m from rejoining.

So quit in say Dec as prices rise - no free ride over next spring and summer.

Octopus have to protect their profits too - and Tracker has been a loss making tariff in its development / trial phase.

nekr0mantik

Scot_39 said:

It's in their FAQ for Tracker.

It's not a doubling for  normal tariffs it's a seasonal demand vs supply.

As demand increases and things like solar drops from high output 16 hrs a day to low 8hrs a day - the current daily lows - even extended 1/2 hrly negatives on agile - become increasingly rare.

From Tracker FAQ at 

https://octopus.energy/tracker-faqs/

"Over the warmer months, prices tend to be lower, and we expect them to increase – likely double – when the heating comes on and the sun starts setting earlier."

It's not - repeat not - a prediction that the Ofgem cap will double.

When they opened up Tracker to all the media were quoting June early July rates iirc 8.5 to 20p cf Ofgem /EPG c33p/30p - making it look like a clear bargain - its a warning that's more likely to look more like 17-40p in deep winter.

And to protect against selective dipping in out with seasons or mini pricing crisis like last Dec - when wholesale rates were 4-8× the levels - so a repeat could see 80p+ - in that window for 3 weeks - they warned it can take 2 weeks to leave and then barred for iirc 9m from rejoining.

So quit in say Dec as prices rise - no free ride over next spring and summer.

Octopus have to protect their profits too - and Tracker has been a loss making tariff in its development / trial phase.

Ah ok thanks
Makes sense.
Wonder how many people left Tracker last winter! 

michaels

So is it time to leave tracker now so as to be allowed back on it next summer?!

Xbigman

Ah ok thanks
Makes sense.
Wonder how many people left Tracker last winter! 

None. Last winter Tracker + Agile were protected from going above the EPG rates. That won't apply this year.


Darren

Xbigman

michaels said:

So is it time to leave tracker now so as to be allowed back on it next summer?!

I plan to be on Tracker all year but I can see that it could be attractive to maybe go on Tracker for the cheapest three months and then spend nine months on the OFGEM cap.  
In that case I suspect the answer to the question as asked is yes. Or possibly in early August come off Tracker. It depends on where you think the cheapest three months of the year will be. 


Darren

QrizB

Xbigman said:

Ah ok thanks
Makes sense.
Wonder how many people left Tracker last winter! 

None. Last winter Tracker + Agile were protected from going above the EPG rates. That won't apply this year.

The EPG hasn't gone away. You can see the rates here:

https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-prepayment-meters-regional-rates-july-to-september-2023

While the title of the page says "prepayment meters", there are also rates given for "other payment method". These are higher than the Ofgem cap rates and so don't currently have any effect.

Xbigman

QrizB said:

Xbigman said:

Ah ok thanks
Makes sense.
Wonder how many people left Tracker last winter! 

None. Last winter Tracker + Agile were protected from going above the EPG rates. That won't apply this year.

The EPG hasn't gone away. You can see the rates here:

https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-prepayment-meters-regional-rates-july-to-september-2023

While the title of the page says "prepayment meters", there are also rates given for "other payment method". These are higher than the Ofgem cap rates and so don't currently have any effect.

I didn't say it had gone away. I said it won't apply this year. 



Darren

Scot_39

Essentially the gov uk page says this quarter - the EPG only discounts prepay gas unit rates - to help match DD and PP.

And those are on the above link.

Technically the £2500 EPG for other methods - still exists at £3000 until Apr 1st iirc. But unless something goes really bad in coming months - and raises the Ofgem cap almost 50% in Oct or Jan - it won't kick in ever for most of us again.

The_Green_Hornet

Watchdog acts to make energy firms more secure

UK energy watchdog Ofgem has announced new rules to make gas and electricity suppliers more financially secure.

The move comes after 30 firms collapsed in less than a year meaning millions of customers were switched to new, often more expensive suppliers.

The rules set a financial buffer energy firms must hold to make them better able to withstand market disruption.

Ofgem will also tell firms there should be temporary repayment holidays when customers cannot pay.

Under the new rules, customers in vulnerable situations must be prioritised and energy supplier's helplines must stay open for longer and be easier to contact.

The new rules will come into force from 31 March, 2025.

https://www.bbc.co.uk/news/business-66310852

wakeupalarm

The_Green_Hornet said:

Watchdog acts to make energy firms more secure

The new rules will come into force from 31 March, 2025.

https://www.bbc.co.uk/news/business-66310852

Why 2 years wait?
Are the energy companies going to hike up prices to build up this buffer?