Gas and Energy contract renewal advice

Mumsy21

I am on a fixed tariff with Octopus at £150 a month that is ending on the 5th of February. They gave me 3 options to choose from:

-Option 1) a fixed 12 months at an estimated monthly cost of £393.84 .
-Option 2) Do nothing at an estimated monthly cost of £197.60 (it is a flexible contract). Electricity - 20.58 p/kWh and gas - 4.14 p/kWh
-Option 3) Go with Loyal Octopus which is a 12 month fix at a monthly estimate of £290.43 . 

I’m not too sure which one is best so looking for advice. Thanks In advance

frederick1950

Both the fixed one's are a bit on the expensive side but remember that the flexible contract will no doubt go up 50% in April ....
At those prices I would go for flexible and see how things work out ? 

spot1034

I would say do nothing (option 2) and wait to see how much this tariff rises when the cap is lifted in April. This should be known in early February. It is by no means certain that it will rise as much as some are predicting as there may be government intervention to limit the increase. (and we will pay for it later!!) You would then have time to look for a better fix which might become available later in the year as wholesale prices continue to fall.

Captainkirk54

Mumsy21 

Spot1034 is right - I have found this on the main Octopus main webpage under "Get Quote" not Account page

"Octopus

You need to know this 👇

Right now, energy prices are at record highs, and most homes will be better off staying with their current energy supplier for the winter.

If your fixed term is coming to an end, don't choose a new tariff or switch supplier.

Instead, let your supplier automatically move you to their default tariff, so your prices are protected by the Government's Energy Price Cap.

Would you like an email when prices fall?

Yes, please email me"

Captainkirk54

savers_united

You have to remember that fixes and the SVT work differently as the SVT lags behind the market, fixes are set by energy purchased in advance.

So even if the SVT increases by 50% in April nothing to stop a fixed deal coming down below the SVT during the Sumner months.

Historically the market has favoured fixed deals with advice to compare the market and stay clear of the SVT, that advice has changed the past 6 months but we may soon see fixes back below the SVT. 

I will be sitting tight for now as fixes to me are set to high to justify taking over the SVT that may see Gov't intervention, and have no exit fees. 

Columbine62

My fixed term contract ends start of May.  I've been offered either another 2 year fixed contract, with estimated monthly payments about 2.5 times my current payments, or else their standard variable rate, which is just £3 more than my current payments.  With the cap rising in April, and again in October, the variable rate might end up at about the same as the fixed rate, but then it might come back down again before the end of the offered 2-year period.  So I am very uncertain which to pick.  My instinct is to go for the variable rate, because that 250% is a lot to swallow, but I'm really not sure.

BUFF

Columbine62 said:

My fixed term contract ends start of May.  I've been offered either another 2 year fixed contract, with estimated monthly payments about 2.5 times my current payments, or else their standard variable rate, which is just £3 more than my current payments.  With the cap rising in April, and again in October, the variable rate might end up at about the same as the fixed rate, but then it might come back down again before the end of the offered 2-year period.  So I am very uncertain which to pick.  My instinct is to go for the variable rate, because that 250% is a lot to swallow, but I'm really not sure.

If you post what supplier/tariff that you are on, actual annual consumption figures & your DD payments (ideally in a thread of your own) someone will work out what your likely figures are post April cap increase (obviously can't yet say about a likely October increase).
If you are coming off a cheap fix then 200%+ increase is definitely a possibility ...