Careful if you're thinking of fixing.

coupleuk

Remember the following if you are thinking of taking a fixed rate deal........

If you take it now then you effectively lose 1 month of the cheapest rates (ie before Aprils Capped increases).

You need to calculate;

1 month of present billing
6 months of billing at new April Cap
5 months billing of Aprils Cap +50% (which they estimate will be Septembers new Capped Rates)

Then compare that with the 12M Fix you're being offered.

In my case, the 12 months Octopus Fix worked out at only £130 or so cheaper over the year.

If the September Capped Rates are lower than that 50% increase then I can move penalty free - except that I will have already been paying higher up front rates.

In the case of Octopus, they didn't raise tariffs to the Capped rates for a whole month last September - if they do that this time then that 12M Fix is even less attractive.

I thought long and hard over switching but I can't see any great benefit for me - so the central heating's gone down 1C instead lol

Ultrasonic

Using less energy is definitely the best option where possible, both financially and environmentally  .

You make an important point about factoring in payments at different rates for different time periods and I did just this myself last weekend. I would just add to your summary that the '1 month at present billing' will only really apply to someone taking up a fixed deal with the same supplier. For someone switching to a different supplier there will be little of March left once the switch is complete.

As an example, I instigated a switch on 27 February that is due to complete on 18 March (Shell to Scottish Power). Someone switching today and with a switch taking the same 19 days they would only lose out on 1 weeks' worth of paying the current lower rates.

jimexbox

Every decision is gamble to some degree. I took the eon 2yr fixed, a hundred quid above April 1st capped rate. (standing charge) per year. Plus I lost a month's much cheaper tariff.

I might regret it, but I can see a big increase in October. Followed by possibly 3 month interval changes to the capped variable rate. 

MWT

coupleuk said:

In the case of Octopus, they didn't raise tariffs to the Capped rates for a whole month last September - if they do that this time then that 12M Fix is even less attractive.

They already announced that the new variable rate prices will come into effect from April 2nd, but they will be set £50 below the cap for existing customers. (the reduction is on electricity).

New customers will have a tariff set £2 below the cap.

https://octopus.energy/press/octopus-energy-to-increase-prices-announces-50-million-of-customer-support/

Regarding the fixes, if you are on a fix that is ending, you will get an email around 45 days before the fix ends. Your new fix will not take effect immediately, it is locked in to start at the end of the current fix, so you do not lose any of your current cheap fix, but you do remove the risk that the new fixes currently available will not be there in 45 days time...

QrizB

coupleuk said:

Remember the following if you are thinking of taking a fixed rate deal........
If you take it now then you effectively lose 1 month of the cheapest rates (ie before Aprils Capped increases).
You need to calculate;
1 month of present billing
6 months of billing at new April Cap
5 months billing of Aprils Cap +50% (which they estimate will be Septembers new Capped Rates)

You also need to know how much energy you expect to use during each of those periods. Just because your DD is the same in each, it doesn't mean your bill will be; it's likely that your energy use during the April cap period will be lower than during the October one.

This generally favours taking a higher fix now in the expectation that it will be cheaper than the rates on offer in September, and minimises the losses if rates fall.

coupleuk

QrizB said:

coupleuk said:

Remember the following if you are thinking of taking a fixed rate deal........
If you take it now then you effectively lose 1 month of the cheapest rates (ie before Aprils Capped increases).
You need to calculate;
1 month of present billing
6 months of billing at new April Cap
5 months billing of Aprils Cap +50% (which they estimate will be Septembers new Capped Rates)

You also need to know how much energy you expect to use during each of those periods. Just because your DD is the same in each, it doesn't mean your bill will be; it's likely that your energy use during the April cap period will be lower than during the October one.

This generally favours taking a higher fix now in the expectation that it will be cheaper than the rates on offer in September, and minimises the losses if rates fall.

Yes, I have my usage for the last 18 months so was able to split it right down (using the spreadsheet I sent you)

tghe-retford

That was calculated in the risk I took when I fixed my electric prices with EON Next back in February - short term pain, long term gain as soon as April. And a zero exit fee so if by a miracle unit prices go down, no harm, no foul.

As for the gas, I just looked at what is being offered now (which equates to EDF and Scottish Power now asking for up to nearly 19p a kWh) and I now want to go into the corner of the room and cry (metaphorically speaking).

I think the way things are going, we will soon not have a choice to reduce our consumption of electric, gas and fuel. In the same way people didn't have a choice in 1973 or 2011 in Japan. My first reaction to seeing the UK natural gas prices today being posted around today was a large gulp!

coupleuk

MWT said:

.

They already announced that the new variable rate prices will come into effect from April 2nd, but they will be set £50 below the cap for existing customers. (the reduction is on electricity).

New customers will have a tariff set £2 below the cap.

https://octopus.energy/press/octopus-energy-to-increase-prices-announces-50-million-of-customer-support/

When did Octopus send out that email? or was it just a press release?

Verdigris

 If you take it now then you effectively lose 1 month of the cheapest rates (ie before Aprils Capped increases)

It takes 17 days for a switch to go through. You'd lose a couple of days, at most.

MWT

coupleuk said:

MWT said:

.

They already announced that the new variable rate prices will come into effect from April 2nd, but they will be set £50 below the cap for existing customers. (the reduction is on electricity).

New customers will have a tariff set £2 below the cap.

https://octopus.energy/press/octopus-energy-to-increase-prices-announces-50-million-of-customer-support/

When did Octopus send out that email? or was it just a press release?

Emails have been going out today to those currently on the standard variable tariff.

bristolleedsfan

coupleuk said:

In the case of Octopus, they didn't raise tariffs to the Capped rates for a whole month last September -

It was two weeks took effect 14 October ( SVR/default flexible Octopus tariff) important as people believe what they read and repeat