Octopus Energy has offered me a Loyal Customer Fixed Deal. Do I accept it.

Poc

I know Martin says to do nothing  about your tariffs but my 12 month fixed rate contract come to an end on January 22nd.  I’m currently paying £86 a month. If I do nothing my variable monthly payment will be £102. Octopus has offered me a 12 month Loyal Octopus rate of £143. I realise the fixed rate is more expensive but with the energy cap expected to go up by at least 40% in April does this seem a good deal? Is this a case of short term pain for long term gain? I can leave the fixed rate deal at any point without paying an exit fee. I’d really appreciate your thoughts.

Gerry1

https://forums.moneysavingexpert.com/discussion/6319581/octopus-offering-deal-180-month

bristolleedsfan

Poc said:

I know Martin says to do nothing  about your tariffs but my 12 month fixed rate contract come to an end on January 22nd.  I’m currently paying £86 a month. If I do nothing my variable monthly payment will be £102. Octopus has offered me a 12 month Loyal Octopus rate of £143. I realise the fixed rate is more expensive but with the energy cap expected to go up by at least 40% in April does this seem a good deal? Is this a case of short term pain for long term gain? I can leave the fixed rate deal at any point without paying an exit fee. I’d really appreciate your thoughts.

In addition to extra 5.5p ish kwh Electricity until Octopus increase its flexible rate which is usually later than new energy cap date, I calculate each meter unit of gas would cost you about 86p more if you choose that fixed rate until Octopus increase its flexible rate by which time less gas tends to be used.

Maybe that is the reason Octopus are advising consumers not to choose a new fixed rate, instead be moved to default tariff which in this case is Octopus flexible tariff

QrizB

bristolleedsfan said:

In addition to extra 5.5p ish kwh Electricity until Octopus increase its flexible rate which is usually later than new cap date, I calculate each meter unit of gas would cost you about 86p more if you choose that fixed rate until Octopus increase its flexible rate by which time less gas tends to be used.

I think you might want to check your maths there.

In my region the Flexible Octopus kWh rate for gas is 4.13p/kWh vs. Loyal Octopus at 6.77p/kWh. A difference of 2.64p/kWh. For a metric meter, a "meter unit" is a little over 11kWh so the difference is 29p or thereabouts.

bristolleedsfan

QrizB said:

bristolleedsfan said:

In addition to extra 5.5p ish kwh Electricity until Octopus increase its flexible rate which is usually later than new cap date, I calculate each meter unit of gas would cost you about 86p more if you choose that fixed rate until Octopus increase its flexible rate by which time less gas tends to be used.

I think you might want to check your maths there.

In my region the Flexible Octopus kWh rate for gas is 4.13p/kWh vs. Loyal Octopus at 6.77p/kWh. A difference of 2.64p/kWh. For a metric meter, a "meter unit" is a little over 11kWh so the difference is 29p or thereabouts.

Recent statement I used 1 gas meter unit of gas

Consumption 1.0 Units (100s of ft3 ) Energy Used* 32.2 kWh @ 3.64p/kW  = £1.17 plus vat

Flexible rate at 4pkwh x 32.2 = £1.29 compared with 12 month loyalty 6.65pkwh x 32.2 = £2.09  - difference of 80p per gas meter unit

Flexible Octopus gas is currently approx 65%  kwh rate cheaper than Loyal Octopus

QrizB

bristolleedsfan said:

QrizB said:

bristolleedsfan said:

In addition to extra 5.5p ish kwh Electricity until Octopus increase its flexible rate which is usually later than new cap date, I calculate each meter unit of gas would cost you about 86p more if you choose that fixed rate until Octopus increase its flexible rate by which time less gas tends to be used.

I think you might want to check your maths there.

In my region the Flexible Octopus kWh rate for gas is 4.13p/kWh vs. Loyal Octopus at 6.77p/kWh. A difference of 2.64p/kWh. For a metric meter, a "meter unit" is a little over 11kWh so the difference is 29p or thereabouts.

Recent statement I used 1 gas meter unit of gas

Consumption 1.0 Units (100s of ft3 ) Energy Used* 32.2 kWh @ 3.64p/kW  = £1.17 plus vat

Flexible rate at 4pkwh x 32.2 = £1.28 compared with 12 month loyalty 6.65pkwh x 32.2 = £2.09  - difference of 81p per gas meter unit

Flexible Octopus gas is currently approx 65%  kwh rate cheaper than Loyal Octopus

You have an Imperial gas meter. Most people have metric ones. You might realise this but others reading this thread might not.

redjumpa

I've just received my Octopus Loyal rate of £335 pm for gas and electric. My fixed rate ends late February 2022. I currently pay £144pm and I am £400 in credit. Surely this can't be right. I've tried to contact the by phone and emails with no joy. Should I stick with my fixed rate until it ends? Or change now to a standard rate?

QrizB

redjumpa said:

I've just received my Octopus Loyal rate of £335 pm for gas and electric. My fixed rate ends late February 2022. I currently pay £144pm and I am £400 in credit. Surely this can't be right. I've tried to contact the by phone and emails with no joy. Should I stick with my fixed rate until it ends? Or change now to a standard rate?

@redjumpa sadly yes, it can be right. What is your current tariff and what loyalty rate have they offered you?

redjumpa

Octopus have now replied and revised the estimate i will pay when my current fixed deal ends. It's now projected to be £187pm on the standard flexible tariff. What a joke they are!! They really are trying to scare people into signing up for a fixed deal knowing it's not the best option.

MWT

redjumpa said:

Octopus have now replied and revised the estimate i will pay when my current fixed deal ends. It's now projected to be £187pm on the standard flexible tariff. What a joke they are!! They really are trying to scare people into signing up for a fixed deal knowing it's not the best option.

Revising estimates is one thing, actually using just what is estimated is another, you need to do your own estimate based on actual use and see if you agree with the new lower figure that has been quoted...

Also keep in mind that the rates on the 'do nothing' variable tariff, are very much variable and will go up in April and I rather doubt that your £187 is still going to cover that...

[Deleted User]

redjumpa said:

Octopus have now replied and revised the estimate i will pay when my current fixed deal ends. It's now projected to be £187pm on the standard flexible tariff. What a joke they are!! They really are trying to scare people into signing up for a fixed deal knowing it's not the best option.

My advice, FWiW, is that you should do your own check of annual usage. Look back a year and seek out an actual/ customer reading and then deduct it  from an actual meter taken today. It is then easy to come up with your own annual usage. You can then check your annual usage against what the supplier has calculated. Bear in mind that if you don’t want a massive DD hike in April, it is worth factoring in a 50% increase in the Cap.