Octopus Energy Fix Rate Query

MrsRWilliams

Hi - have been hours looking into this and am as confused as when I started.

I would seem to have a good current fix with Octopus under their Exclusive Direct 12m Fixed which ends 04 March.  Elec is 17.07 unit price and Gas is 2.96 unit price.

They have today offered me a Loyal 12m Fix at Elec 27.92 unit price and Gas 8.49 unit price.

Looking around there is no better fix to transfer to, but as this is well over the 40% increase which ML recommends might be worth considering I am uncertain what to do. Doing nothing and going onto the cap rate price on 4 March is an option but will be a worry in event it goes way higher in April and stays higher than this Loyal 12m Fix price.

Has anyone got a similar offer and what thoughts ??

TheMilkmansDad

the 40% increase is from the current Rate Cap and the expected rate cap in April. you need to look at the current rate Cap + 40-50% against what fix you are being offered rate wise.

Astria

Does it have an exit fee? From memory I don't think Octopus had exit fees in which case you could move onto it and if the cap is lower than what you expected you could cancel it. The electric seems ok but I'd be hesitant with a gas price of 8.49 and probably wait it out.

ProDave

I have just agreed to that same Loyal Octopus rate.  It is a little less than 40% above the present capped SVR.  Even allowing for the fact I will be paying more than the capped SVR in March, then the April rise would have to be less than 40% to make the Loyal rate worse off. And if rates rise again in October the savings will be greater.

I never thought I would be thinking of 27p per kWh as a "good" rate. How times have changed.

JJ_Egan

My last rate was  something like 2.7 p.

Captainkirk54

Yes I am with you. The very same fixed contract expires end of Jan, my DD will rise from £80 to £134 per month. Do I let the fixed price contract go and pay the higher cap rate until March and see what happens or just take the new fixed price. The fact that there is no Switch alternative with another supplier makes me think this is best. It is no fee cancellation so can change in the summer if it is not competitive.

Check today's post for my previous post 

MrsRWilliams

Astria said:

Does it have an exit fee? From memory I don't think Octopus had exit fees in which case you could move onto it and if the cap is lower than what you expected you could cancel it. The electric seems ok but I'd be hesitant with a gas price of 8.49 and probably wait it out.

Hi there - thanks very much and you are right, there is no exit fee so that seems good suggestion

MrsRWilliams

TheMilkmansDad said:

the 40% increase is from the current Rate Cap and the expected rate cap in April. you need to look at the current rate Cap + 40-50% against what fix you are being offered rate wise.

Really appreciate you pointing this out - comparing to my fixed rate is where I have gone wrong .... thanks

tlcgrantham

You might also consider Octopus Tracker for gas. It's a variable tariff but fixed at a maximum of 6p per kw/h with Ali's standing charge of about 15p per day.

MrsRWilliams

Captainkirk54 said:

Yes I am with you. The very same fixed contract expires end of Jan, my DD will rise from £80 to £134 per month. Do I let the fixed price contract go and pay the higher cap rate until March and see what happens or just take the new fixed price. The fact that there is no Switch alternative with another supplier makes me think this is best. It is no fee cancellation so can change in the summer if it is not competitive.

Check today's post for my previous post 

Do you know if the loyalty fixed rate we have been offered can be withdrawn at any time? I don't really want to accept it now with 6 weeks on the present low fixed tariff. Also my DD will rise from £86 to £160 which seems really hard to accept - but as you say there are no other fixed price options as good as the Octopus loyaly rate available

Astria

MrsRWilliams said:

Captainkirk54 said:

Yes I am with you. The very same fixed contract expires end of Jan, my DD will rise from £80 to £134 per month. Do I let the fixed price contract go and pay the higher cap rate until March and see what happens or just take the new fixed price. The fact that there is no Switch alternative with another supplier makes me think this is best. It is no fee cancellation so can change in the summer if it is not competitive.

Check today's post for my previous post 

Do you know if the loyalty fixed rate we have been offered can be withdrawn at any time? I don't really want to accept it now with 6 weeks on the present low fixed tariff. Also my DD will rise from £86 to £160 which seems really hard to accept - but as you say there are no other fixed price options as good as the Octopus loyaly rate available

Check your terms and conditions, but typically fixed rates are exactly that - the unit rate is at a fixed rate until the expiration of the contract. That's why so many energy companies have gone bust - selling energy for less than they are buying it for.

You don't have to accept it now, you can gamble and see what the new cap amount is - it may surprise us all! but of course the tariff may not be available after the new cap is announced. I would expect them to announce the new level is February and it be brought into effect from April.