Confused about energy and switching

RhiBi

Hi, I hope you can help.  To give background, I am 2 years separated after a 21 year marriage and for the first time, dealing with bills myself.  Last December, I switched to Octopus energy and I’ve had no issues.  My fixed rate ends next month (13th December) and I haven’t a clue what to do.  I’m currently paying £100 a month for gas and electricity and am currently £325 in credit.  I’m hoping that’ll carry me through the winter months.  

What do I do when the fixed term ends though?  All the news about price hikes just confuses and panics me.  Last Friday I had someone at the door who wanted me to switch with them, they said after my fixed term, my monthly bill will rise to £237 a month!!!  I cannot afford that!  They wanted me to answer a call called 60 second challenge.  At that point I refused.

what do I do?  I’ve really no clue on whether to switch or stay with Octopus.  If I wait to see what my bills are after the fixed term, will I be put into another fixed term at a higher rate, or can I look around then.  Of am I better off switching now.If I do switch, who too??

please help xx

RhiBi

Based on this email, it seems do nothing is my best option, or should I look to switch?  This was sent on 29/10 

victor2

RhiBi said:

Hi, I hope you can help.  To give background, I am 2 years separated after a 21 year marriage and for the first time, dealing with bills myself.  Last December, I switched to Octopus energy and I’ve had no issues.  My fixed rate ends next month and I haven’t a clue what to do.  I’m currently paying £100 a month for gas and electricity and am currently £325 in credit.  I’m hoping that’ll carry me through the winter months.  

What do I do when the fixed term ends though?  All the news about price hikes just confuses and panics me.  Last Friday I had someone at the door who wanted me to switch with them, they said after my fixed term, my monthly bill will rise to £237 a month!!!  I cannot afford that!  They wanted me to answer a call called 60 second challenge.  At that point I refused.

what do I do?  I’ve really no clue on whether to switch or stay with Octopus.  If I wait to see what my bills are after the fixed term, will I be put into another fixed term at a higher rate, or can I look around then.  If I do switch, who too??

please help xx

You did well to get rid of the visitor at the door. Don't believe anything they told you.

At the end of your fixed tariff, you should go onto Octopus' standard tariff, although they may try to persuade you to take a new fix with them. The new fix will be expensive, their standard variable tariff is capped by Ofgem and while it will result in increased cost, it is currently the cheapest way to go. You can expect an increase of around 50% though, even with that. Come next April, the cap will be revised and you can expect a substantial further increase in cost.

Talk to Octopus and ask them what will happen if you don't choose a new tariff. Get the name of the new tariff you will go onto and look up the rates for that on the Octopus site. You might have to email them and wait for a reply, as they are a little busy at ther moment with over half a million new customers from the collapsed Avro Energy!

Verdigris

Do nothing until nearer April.

gozaimasu

Do nothing, stay with Octopus and get a sticker for your front door that says “NO SALESMEN OR COLD CALLERS”.

jimjames

RhiBi said:

Based on this email, it seems do nothing is my best option, or should I look to switch?  This was sent on 29/10 

So if you do nothing you pay £116 or if you switch to a fixed rate you pay £171. I know which I'd do and it isn't taking the fixed rate. It's a very different situation to normal when the price cap was the worst option to have.

RhiBi

I guess I was trying to work out if changing supplier to a fixed rate would be better than a variable rate that can change at any time.  This is all new to me and with so much in the news, I’m confused and panicked!

QrizB

RhiBi said:

I guess I was trying to work out if changing supplier to a fixed rate would be better than a variable rate that can change at any time.  This is all new to me and with so much in the news, I’m confused and panicked!

Currently, the energy market is in an unusual situation and there are no suppliers to switch to that are significantly cheaper than Octopus's "Flexible Octopus" variable rate.

We're all hoping that once February is behind us, the energy market will start working again and there will be switching options then. Until then, however, the variable rate is the best choice for most people.

benwarwick123

RhiBi said:

Based on this email, it seems do nothing is my best option, or should I look to switch?  This was sent on 29/10 

Hi,

In your position I would do nothing and get automatically moved to Octopus Flexible Tariff.. for this winter were all hedging our bets and guessing what will happen in the market next Spring. In my mind I think we're see more reasonably priced tariffs after the winter Panic.. at the moment providers are adding about, 50% to the current price cap rates and thats unsustainable in the long run.
Try not to worry about it at the moment.