Received New Fixed Rate from Octopus

Kinikat

Hi there, our current fixed tariff with Octopus ends, end of March 2022.  We currently pay £122 p/mth for both gas & elec, they have quoted us new 12mth fixed loyalty deal of £246.07 p/mth or a variable rate of £144 p/mth based on today’s current prices (not taking into account the price hike from April).  I have looked on other price comparison sites, but could not find anything cheaper for a fixed rate.  Not sure whether to go for the new fixed rate or variable? 

QrizB

Have you been offered "Loyal Octopus 12M Fixed January 2022 v1"?

For most people that tariff is more expensive than the April cap, but it does offer certainty from October onwards. Some people are forecasting a further 20% cap increase then; if this happpens, the Loyal Octopus tariff could prove to be cheaper.

You'll find the April cap rates at the link in my signature.

savers_united

There are already lots of threads on here with people in the same situation as yourself. 

Have a read of those, will give you some good direction. 

It is your choice, Octopus loyal fix is higher than the new cap coming in April, but a fix will give you protection from another possible rise in October and also has a lower SC so you need to look at your useage and compare the unit rates. 

Kinikat

QrizB - that is the loyalty rate offered by Octopus.  The non loyalty rate is £277 p/mth.
Our current usage is:
Gas - annual 13733 kWh 26.11p/day 4.15p/kWh
Elec - annual 4747 kWH 25.66p/day 21.41p/kWh

We live in Devon

QrizB

Kinikat said:

QrizB - that is the loyalty rate offered by Octopus.  The non loyalty rate is £277 p/mth.

In which case, as you're determined to make me guess, I'm going to say it's "Loyal Octopus 12M Fixed January 2022 v1". The opinion in my post above stands.

Kinikat

QrizB - sorry, the daily rates I quoted above are for the variable rate offered of £144 if we switched over to that at the end of March after our current fixed rate ends, £1,739.90 for the 12mths.

Our current usage is:
Annual £1,412.10
Elec:
Unit rate 17.73p per kWh
Standing charge 24.57p per day

Gas:
Unit rate 3.02p per kWh
Standing charge 26.06p per day

Charges under new proposed 12mth loyalty fixed rate of £246.07, based on estimated annual usage of £2,952.80:

Elec:
Unit rate 33.46pp per kWh
Standing charge 25.66p per day

Gas:
Unit rate 8.96p per kWh
Standing charge 26.10p per day

QrizB

Kinikat said:

Charges under new proposed 12mth loyalty fixed rate of £246.07, based on estimated annual usage of £2,952.80:

Elec:
Unit rate 33.46pp per kWh - variable 28.41p/kWh
Standing charge 25.66p per day - variable 51.6p/kWh

Gas:
Unit rate 8.96p per kWh - variable 7.48p/kWh
Standing charge 26.10p per day - variable 27.2p/day

Thanks I've added the rates for the April cap above. You'll see that the Ofgem capped variable rate - which Flexible Octopus will follow - is cheaper per kWh than the Loyal Octopus fix.

The variable standing charges are higher; granted, but after using 1kWh/day of gas and 5kWh/day of electricity you will still be ahead.

Put another way, using your annual consumption figures of gas - annual 13733 kWh, elec - annual 4747 kWh, gives:

• Loyal Octopus - £3007/yr, £251/month
  
• Ofgem cap - £2622/yr, £219/month

The only reasons to choose the Loyal Octopus fix are:

1. If you think prices will rise enough in October that Loyal Octopus will end up cheaper by the end of the fixed period even though you've paid more than Flexible Octopus over the summer.
2. If you really need a fixed monthly DD in order to budget for a year.
   

Kinikat

QrizB - Thank you so much for your response, much appreciated!