Octopus Renewal offer - Am I missing something?

VT41

Martin mentioned if you're offered anything 25% above the April 2022 fix then go for it. Below in bold are my calculations of the 25% increased prices. I've been offered the below by Octopus to renew fix for a year. Am I missing something?

According to my calculations

April 2022 fix = Gas Unit price = 7.37p  Standing 27.22p
 Electricity Unit price 28.34p Standing 45.34p

Factoring in the 25% increase .

Gas unit price = 7.37p + 1.84 = 9.21p
Gas Standing = 27.22p + 6.8p = 34.02p

Elec Unit  - 28.34 + 7.08 = 35.42p
Electricity Standing - 45.34 + 11.33 = 56.67p

Octopus offer 

Electricity

Daily standing charge -           23.30p /day

Unit rate-        35.65p /kWh

Early exit fee   £0

 

Gas

Daily standing charge- 26.10p /day

Unit rate -9.96p /kWh

QrizB

VT41 said:

Martin mentioned if you're offered anything 25% above the April 2022 fix then go for it. Below in bold are my calculations of the 25% increased prices. I've been offered the below by Octopus to renew fix for a year. Am I missing something?

I don't think you've missed anything, no.

Verdigris

No, I don't think you've missed anything.

I've just signed up for a similar deal with Octopus, although for a slightly different reason. I'm doing up a house, so not consuming much, but the SC is half what i would have been paying. However, I also calculated that come the next cap fix, when I will hopefully be moved in and using a bit more, the price will be in line with the new cap.

The lack of exit fees is also a factor, because it leaves one free to jump on something else, if it looks more attractive at the time.

It will depend on your usage, however. If you're a heavy user it might not be attractive but it is definitely worth considering by a light user. If I use 2.5kWh per day, on average, it will cost me the same as the cap. Below that, I'm quids-in.

Ultrasonic

VT41 said:

Martin mentioned if you're offered anything 25% above the April 2022 fix then go for it.

I suspect you meant below rather than above there. This logic may have shifted from when it was first shared too.

As for the calculations I'd be looking at comparing costs for your actual usage in kWhs. Do you know this?

I'm guessing that 'Octopus offer' is a fix of some sort? If so, for how long?

QrizB

Ultrasonic said:

I'm guessing that 'Octopus offer' is a fix of some sort? If so, for how long?

The rates look very much like the Loyal Octopus Feb 22 V1 12-month fix.

Blastarama75

Which tariff is this? I'm getting two from Octopus but they do not match yours.  Also trying to work out if worth fixing.  


Octopus 12M Fixed£192.76monthly estimate

⚡ Electricity

Daily standing charge	25.66p /day
Unit rate	36.75p /kWh
Early exit fee	£0

🔥 Gas

Daily standing charge	26.10p /day
Unit rate	9.82p /kWh
Early exit fee	£0

Loyal Octopus 12M Fixed

Most popular

£185.11monthly estimate

Tariff cost breakdown

⚡ Electricity

Daily standing charge	25.66p /day
Unit rate	36.75p /kWh
Early exit fee	£0

🔥 Gas

Daily standing charge	26.10p /day
Unit rate	9.82p /kWh
Early exit fee	£0

QrizB

Blastarama75 said:

Which tariff is this?

See the post immediately before yours:

QrizB said:

Ultrasonic said:

I'm guessing that 'Octopus offer' is a fix of some sort? If so, for how long?

The rates look very much like the Loyal Octopus Feb 22 V1 12-month fix.

The reason your second quote is slightly different to the OP's is that tariffs vary by region.

Danny30

I have a similar octopus fix OP. Is it worth taking the 12 month fix in view of the estimated increasing prices in April and October?

Verdigris

Is it worth taking the 12 month fix in view of the estimated increasing prices in April and October?

Only you can answer that. If your usage is lower than average and you think there will be another substantial rise in October, it probably is. Nobody has any answers, unfortunately.

coupleuk

Do remember that while those figures are high for now - we are approaching summer so your usage will drop substantially.

Its only from Septembers new Price Cap increases that you'll start to notice the "benefit" of fixing now at what appears to be a high rate.

savers_united

Those already with Octopus the other thing to consider is when they will raise their SVT rate. 

Previously they have left it at least a month, Mid November was my last increase to reflect the October cap. 

There was also talk of them increasing rates gradually, a 12 mth fix even now will only be until March next year so at best you may get 5 months at a rate lower than the SVT, but more likely 4 months, it would take a steep increase in October to the variable rate to make a fixed rate work, we are only 1 month into the new calculations for October and further Gov't action may be required.