Octopus Energy fixed rate deal - is it worth it?

SDG123

Hi all
I’m pretty much confused here having read lots of posts about fixed terms and new offers, so just wondering if anyone can say whether this from the loyal customer deal from Octopus is worth taking up, or should do nothing and transfer onto the variable rates? My fixed term ends on 7th March. 

I currently pay £45.71pm with a total electric bill of £616.41 per year (estimated). 

Estimated annual usage day - 2667.0 kWh

Estimated annual usage night - 372.8 kWh

Current rates:

£45.71pm

Electricity (day): 18.84p per kWh

Electricity (night): 10.95p per kWh

Electricity: 20.06p per day

NEW LOYAL FIXED TERM OFFER

£87.66pm

Daily standing charge23.85p /day

Unit rate (day) 35.93p /kWh

Unit rate (night) 21.63p /kWh

No exit fee.

QrizB

Welcome to the forum.

At least until the end of September, you would be better off on the capped variable rate.

And, more generally, you don't use enough night rate electricity to justify E7. You would be better off on a single-rate tariff (or, if you can, by moving more of your use to night rate).

SDG123

Thank you for the welcome and for the info. 

Just curious if we have E7 do we pay extra for that in some way? 

QrizB

SDG123 said:

Thank you for the welcome and for the info. 

Just curious if we have E7 do we pay extra for that in some way? 

Not directly.

E7 tariffs are really intended for properties with night storage heaters. These heat up using cheap off-peak electricity then let the heat out in a more-or-less controlled fasdhion during the day and evening. Usually these properties would heat their water off-peak using a tank fitted with an electric immersion heater too.

The way that E7 tariffs are set up, you're expected to use at least 40% of your electricity on the cheap off-peak rate. If you do that, they cost less than a single-rate tariff.

From the EAC figures you've given, you're using about 3000 kWh/yr in total but only ~12% of that is on the night rate. There are many reasons why this might be the case but the most common is that  your property once had night storage heaters, but no longer does.

If you were using over 1000kWh/yr on the night rate, it should be cheaper than the equivalent single-rate tariff.

SDG123

Ahh thanks, that explains it. 

To be honest I have no idea why we have E7, we’ve never had night storage heaters - only solid fuel heating for a number of years and more recently oil which we also use to heat the water. 

I’ll have a word with Octopus and get the E7 removed and changed to a single tariff then.