Fix on Octopus GO??

apple3feet

We're currently on an Octopus GO electricity tariff - expiring March 20th (13.8p peak, 5p off-peak, 25p per day). 

We've been offered:

(1) a new Octopus GO rate (30.61p peak, 7.5p off peak, 24.11p per day) - fixed for 1 year 
(2) Flexible Octopus (22.01p peak, 15.19p off peak, 24.19p per day) - no fix

On their estimates, Flexible Octopus is about 15% cheaper for us at those prices.  

I know that the general advice is to let fixed deals expire, but does that apply here?  Aren't we expecting the Flexible Octopus rates to increase by 54% in April?  Am I right to think we should fix on the new GO tariff?

Xbigman

It all depends on your usage. 30.61p peak is just above the 28p April cap but the 7.5p period is the crucial factor. How much of your energy do you use during the cheap period. If your average price is below 28p it will work out cheaper. 
And that standing charge is half the April cap. If you are a low user that could make it a good deal in its own right. 


Darren

tlcgrantham

Key ? Do you have an electric vehicle?  If so the fix looks very good. Even if not it still looks good. Mine renews at the end of June and I hope to get your offer.

QrizB

apple3feet said:

I know that the general advice is to let fixed deals expire, but does that apply here?  Aren't we expecting the Flexible Octopus rates to increase by 54% in April?  Am I right to think we should fix on the new GO tariff?

As Xbigman says:

Xbigman said:

It all depends on your usage. 30.61p peak is just above the 28p April cap but the 7.5p period is the crucial factor. How much of your energy do you use during the cheap period. If your average price is below 28p it will work out cheaper.

I'm on Go and I'm using 50% of my energy on the cheap rate. If you're similar, the Go rate works out as less than 20p/kWh on average and is fixed for 12 months.

That's a much better option than a flexible tariff that might rise by 40% in a couple of months.

worrywart_3

What’s the tipping point for go % wise do we think? 

QrizB

worrywart_3 said:

What’s the tipping point for go % wise do we think? 

We don't know what rates Flexible Octopus will be charging from April, but the current single-rate for Flexible is at the cap, around 20.5p/kWh.

• For the Flexible Octopus E7 tariff that the OP has been offered, the break-even is 22% on the night rate; use more than that and E7 is cheaper than the *current* single-rate.
• For the Go tariff, the number is 44%.

If Flexible increases to the cap of around 28p/kWh, the OP's new Go tariff will break even at 11%.