Octopus "AVRO Flexible" Tariff - is is a Capped Tariff ?

PHILMSE

When Octopus started contacting AVRO customers being transferred to them, I think they mentioned a tariff £10 under the Price Cap.
We now have the tariff details and it seems to be a bit more under than that.
However, Octopus  now say on my A/C

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Flexible Avro

Flexible Avro October 2021 v1

Prices follow wholesale costs

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and then in the description of the Tariff say "We'll always give you at least 30 days' notice of a change"

This does not sound like an OFGEN Capped Tariff, which from my understanding the price cap is fixed from 1Oct 2021 to 1 April 2022

The AVRO Flexible Tariff is very similar to the Variable Tariffs from the Big 6 companies but we know that the current price cap on them will last unti 1 April 2022, 

So a VERY IMPORT questions is whether this tariff is price capped.

If not  then Octopus could increase it substantially anytime, with 30 days notice.

Anyone know the answer to this ?

QrizB

PHILMSE said:

So a VERY IMPORT questions is whether this tariff is price capped.

If not  then Octopus could increase it substantially anytime, with 30 days notice.

Anyone know the answer to this ?

Welcome to the forums.

I think you've slightly missed the point. As SoLR for Avro, Octopus have agreed the tariff fo ex-Avro customers with Ofgem. As part of that deal, they've also agreed to fix it for 6 months.

It also happens that the tariff is slightly lower than the Ofgem cap - it didn't have to be lower, indeed if Ofgem had agreed it could have been higher (Ofgem probably wouldn't have agreed, but that's another matter).

bagand96

It's a variable tariff so yes rates can change.  But they cannot go above the Ofgem price cap.  In theory if there's a collapse in energy wholesale prices then Octopus could reduce the tariff (however unlikely that may seem!)

PHILMSE

QrizB said:

I think you've slightly missed the point. As SoLR for Avro, Octopus have agreed the tariff fo ex-Avro customers with Ofgem. As part of that deal, they've also agreed to fix it for 6 months.

Didn't think I had missed the point. You say Octopus agreed to fix it for 6 months - nothing I have received in writing ( e.g. EMail ) from Octopus or anything I have read on their site ( apologies if I have missed it ) says this.
Maybe if it is there somewhere then someone can give me link to it. I like to have things in writing of some kind.
All I have seen re. changing tariffs is that they will give me 30 days notice.
Why do they say this if they have agreed to fix it for 6 months ?

In any case, agreeing to fix it for 6 months is still not quite the same as it being a Capped Tariff - with a Capped Tariff I would expect it to be raised close to the cap, whatever that is, in 6 months time and then not increase again for another 6 months. An effective  fix for just the 1st 6 months means that anything can happen to it AFTER 6 months.
It would appear to me that Octopus are purposely  being vague over this.

MWT

The 6 months runs from the date of their appointment as SoLR, 26th September, so the 'fixed' period will expire just before the cap changes with effect from April 1st 2022.

Octopus will give you 30 days notice of any change in that tariff, even if it is just to let you know that it is going up due to the change in the cap when that happens next year.

The cap applies to any standard variable tariff, it doesn't need to be called out as capped, it is capped by the terms of the energy supply licence agreement

[Deleted User]

PHILMSE said:

QrizB said:

I think you've slightly missed the point. As SoLR for Avro, Octopus have agreed the tariff fo ex-Avro customers with Ofgem. As part of that deal, they've also agreed to fix it for 6 months.

Didn't think I had missed the point. You say Octopus agreed to fix it for 6 months - nothing I have received in writing ( e.g. EMail ) from Octopus or anything I have read on their site ( apologies if I have missed it ) says this.
Maybe if it is there somewhere then someone can give me link to it. I like to have things in writing of some kind.
All I have seen re. changing tariffs is that they will give me 30 days notice.
Why do they say this if they have agreed to fix it for 6 months ?

In any case, agreeing to fix it for 6 months is still not quite the same as it being a Capped Tariff - with a Capped Tariff I would expect it to be raised close to the cap, whatever that is, in 6 months time and then not increase again for another 6 months. An effective  fix for just the 1st 6 months means that anything can happen to it AFTER 6 months.
It would appear to me that Octopus are purposely  being vague over this.

I've really missed the point you are trying to make.

The only certainty is what is happening to your tariff until the next 6 month adjustment to the cap.  Make your mind up nearer to that date knowing what that cap is and either stay with Octopus or move on to someone that you judge will offer you a better deal.

QrizB

PHILMSE said:

Maybe if it is there somewhere then someone can give me link to it. I like to have things in writing of some kind.
All I have seen re. changing tariffs is that they will give me 30 days notice.
Why do they say this if they have agreed to fix it for 6 months ?

Here, see paras 2.20 - 2.21 of the Ofgem guidance.

2.20 - Ofgem asks the SoLR what tariff they will apply.

2.21- Ofgem permits the SoLR to charge that tariff until the customer chooses another, or switches away, or 6 months.

2.22 - Ofgem prohibit termination fees from SoLRs.

PHILMSE

Thanks QrizB for the link to the Ofgen Guidance - the statement in 2.21 clear up the matter.

For me, the "6 months fix" info. provided there needs to be seen alongside the Octopus "we'll give you 30 notice" info. to have a clear understanding of our position over the next 6 months. I am sure that most customers ( obviously  me included ) had no knowledg of that Ofgen document and it would have been useful if Octopus had clarified this in either their EMails to me or in their site FAQs.

If in fact All SVTs are price-capped ( MWT says "any" ) then that also covers things  but I thought that I have read somehere that a few "all-green” VRTs were exempt, hence the doubt in my mind about that.

Now I know that safety net is in place for the next 6 months I agree with DerwentMailman about the timing of my next decision.

Thanks for all the replies - great to find people who have a good inside knowledge of our position.

QrizB

PHILMSE said:

If in fact All SVTs are price-capped ( MWT says "any" ) then that also covers things  but I thought that I have read somehere that a few "all-green” VRTs were exempt, hence the doubt in my mind about that.

There are three green suppliers who are exempt from the price cap:

• Ecotricity
• Good Energy
• Green Energy UK
  

If you visit their websites you can request a quote and see their SVT rates. Ecotricity, for example, quotes me 47.8p/kWh for electricity and 11.3p/kWh for gas.

Rcandeias27

I went from Avro to Octopus so I am on the Flexible Avro, but I have noticed what seem to be my electric and gas consumption going up and I suspect they seeking in higher rates no notification...as I judge this when I look at the gadget they gave me to see my daily spend and I know at midnight it resets to zero ( i mean it does add the daily charge) but then is just consumption... normally overnight all the same appliances ae on like the fridge any standby electrics etc, also no gas is really consumed overnight. Yet a few months ago my daily spend overnight for electric showed in the morning at ninety odd pence's to a pound, while now is showing around £1.50 and gas was only around 67p to 75p and now is showing at around £1.30...how is this allowed or what is going on...do they sneak this in increasing the tariff if it is under the cap without telling you, and then they will put it up again in April when it goes up again...so daily spend for the whole day also appears to be higher on both, and i am not really spending anymore especially on electric maybe gas as heating may be on a little longer, but doesn't explain the overnight thing..... is there a record somewhere of the fees for the flexible Avro for each month say for the last couple of years?
Has anyone noticed this to on their bills?

pochase

Welcome to the forum.

 but I have noticed what seem to be my electric and gas consumption going up

If your consumption goes up you will be paying more of course.

Do you really mean consumption in KWh used, or do you mean that you are just paying more for the same usage?

You are aware that we had some big increases in April 2022 and October 2022, plus there will be another on this April?

So of course you will be paying much more than a year ago, electricity was a year ago about 21p per KWh and is now 35p, while gas was 4p and is now 10.3p.