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Octopus energy telling me my fixed tariff is variable - help!


I'm not being funny but I'm an academic in English and nowhere in my paperwork when I signed up does it mention the word 'variable'. Should I contact trading standards or have I been massively dim and missed the obvious?
Further info below
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I initially sent them this after they said my usage would go from £1000 a year to £2500:
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Reply 1, 9 days and 2 prods later:
Good evening
I hope you are well!
The Price Promised is a fixed term tariff but the rates are Variable based on the Price Cap rates, your bills will show it as a Variable and this is how it was explained when it was brought out
Kind Regards,
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reply 2:
Octopus Price Promise is a two year tariff (starting in September 2021 and ending September 2023) it is a Variable Tariff with a fixed term not a Fixed Rate Tariff. During that two years, we guarantee your energy prices are always below OFGEM's Energy Price Cap so they only change twice a year not every month as is with the current Octopus Flexible Tariff.
On Octopus Price Promise, we will change your unit price and standing charge when the Government sets a new price cap level - this happens twice per year in April and October. Once we know the price the cap is set at, we’ll automatically recalculate your tariff rates to ensure they’re always at least £50 cheaper. Like all our tariffs, there are no exit fees so you are not locked-in in any way if you want to change tariff, or even supplier. You can do this at any time and can ask for quotes for different tariffs whenever you like.
This tariff is very different to a Fixed Rate Tariff, where the price is usually a lot higher. For this reason I have to advise that we aren't breaching our contract with you in regards to this email but if you are unhappy on this tariff we are happy to help you move to a different one in its place.
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Comments
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This tariff will have already changed prices once back in October as it is a cap tracking tariff.All the pre-sales material made this clear, but some managed to get onto the tariff without reading that material...How did you get on to the tariff? Did you ask for it by name or was it suggested during a phone call?Similarly check the email you would have got at the time when you first moved onto the tariff, some of those did not make it clear that it was a tracker tariff...1
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Thanks. I think it was just online. Here is what they sent me when I joined. I said I was a light user. I still don't see anything telling me it's a tracker tariff - I don't understand how they can now say that my rate changes. Sorry for being dim!Dear ______, welcome aboard!We believe energy should be better. Better on your pocket. Put to better use throughout the home.Better for the planet. Just better all round, really. That's why we started Octopus Energy.Below you'll find all the information you need as you join us on our journey. It's important that youunderstand us and that we understand you, so let us know if you spot any details that aren’t right.Your estimated annual cost is £765.16Your estimated annual cost is based on a usage of 1,800 kWh of Electricity and 8,000 kWh of Gas, whichwere the details you gave us when you signed up. It may change with usage and will become moreaccurate with regular readings.Your payment detailsWe've set your Direct Debit to £63.76, based on your estimated annual cost. We'll collect an initialpayment on your first day of supply (which is currently scheduled for 2nd August 2021) and on the 25thof each month thereafter.You can cancel your Direct Debit at any time by contacting your bank or building society.Your tariff informationAbout your electricity tariffSupplier Octopus Energy LimitedTariff nameOctopus Price Promise July 2021V1Tariff type FixedPayment method Direct DebitUnit rate 18.13p per kWhStanding charge 26.20p per day (£95.62 per year)Tariff ends on 30/09/2023Price guaranteed until 30/09/2023Exit fees (if you cancelthis tariff before the enddate)Not applicableDiscounts and additionalcharges Not applicableAdditional products orservices included Not applicableIllustrative electricity cost on this tariffAssumed AnnualConsumption 1,800 kWhEstimated Annual CostSee your estimated annual cost(page 1)Tariff Comparison Rate (TCR) 21.43p per kWhSupply of electricity is subject to 5% VAT. This is included in theprices and costs above, and may mean charges are displayeddifferently on a statement of account.About your gas tariffSupplier Octopus Energy LimitedTariff nameOctopus Price Promise July 2021V1Tariff type FixedPayment method Direct DebitUnit rate 3.13p per kWhStanding charge 25.43p per day (£92.82 per year)Tariff ends on 30/09/2023Price guaranteed until 30/09/2023Exit fees (if you cancelthis tariff before the enddate)Not applicableDiscounts and additionalcharges Not applicableAdditional products orservices included Not applicableIllustrative gas cost on this tariffAssumed AnnualConsumption 8,000 kWhEstimated Annual CostSee your estimated annual cost(page 1)Tariff Comparison Rate (TCR) 3.87p per kWhSupply of gas is subject to 5% VAT. This is included in the prices andcosts above, and may mean charges are displayed differently on astatement of account.Frequently asked questions•What is a kWh?A kWh stands for a kilowatt-hour – the unit used to measure energy use. 1 kWh will power a 40-wattlight bulb for 25 hours.•What is the Tariff Comparison Rate (TCR)?TCR is a rate per kWh that allows you to compare your tariff to other tariffs by taking account of theunit rate and standing charge. It is calculated from national average consumption values. A TCR doesnot apply to Economy 7 meters.About your tariffYou’ve selected our Octopus Price Promise tariff. This means that your energy bill will reflect the amount ofenergy you use each month, but the price you pay per unit is fixed. Like all our tariffs, it is online only.Once your fixed term is up, we’ll move you to our cheapest standard tariff. This is a rolling tariff (there is nominimum contract period) and has no exit fees, though you should be aware that this tariff may be either slightlycheaper or slightly more expensive than your fixed tariff. Rest assured – we’ll be in touch 45 days before youragreement expires to explain your options.0
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Particularly the bit that says:Tariff type Fixed [it doesn't say fixed TERM; it implies fixed cost since 'price is guaranteed until 30/09/2023']Payment method Direct DebitUnit rate 18.13p per kWhStanding charge 26.20p per day (£95.62 per year)Tariff ends on 30/09/2023Price guaranteed until 30/09/20230
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boomerang81 said:Thanks. I think it was just online. Here is what they sent me when I joined. I said I was a light user. I still don't see anything telling me it's a tracker tariff - I don't understand how they can now say that my rate changes. Sorry for being dim!If you saw the product details on line then it was made clear there that it was a tracker tariff, the emailed information did not make it clear enough I agree.That means that the price calculation method was fixed and linked to the Ofcom cap, but if the cap changed then so would the tariff.All you can do is raise it as a compliant, but I'm surprised you didn't notice the prices going up in October, what kWh rate are you on right now?.
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For future info., what all 'fixed' energy tariffs do is fix the standing charges and unit prices for the contract term. How much anyone has to pay depends on how much energy they use, with direct debit amounts adjusted as needed to cover this.0
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Ultrasonic said:For future info., what all 'fixed' energy tariffs do is fix the standing charges and unit prices for the contract term. How much anyone has to pay depends on how much energy they use, with direct debit amounts adjusted as needed to cover this.1
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This same tariff has been discussed in the past i seem to remember. The emailed details contradicted the actual terms of the tariff. I believe some people have argued it with octopus and had managed to get to an agreement. You'll have to search through the different octopus threads to find this.
Your paperwork suggests it was a "fixed tariff", meaning the unit rate and standing charge should be the same for the full 2yr term, the price you PAY will vary depending on how much energy you use. (you use a lot, you pay a lot)
The actual terms of the tariff are more like a tracker, where the unit rate and standing charge can increase at certain times of the year.....this is NOT included in your email, so you can potentially argue that this wasn't made clear and you wouldn't have signed up for it had you known this was essentially a variable rate tariff.
Good luck.0 -
k_man said:Ultrasonic said:For future info., what all 'fixed' energy tariffs do is fix the standing charges and unit prices for the contract term. How much anyone has to pay depends on how much energy they use, with direct debit amounts adjusted as needed to cover this.1
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k_man said:Ultrasonic said:For future info., what all 'fixed' energy tariffs do is fix the standing charges and unit prices for the contract term. How much anyone has to pay depends on how much energy they use, with direct debit amounts adjusted as needed to cover this.It should be clearer, it is a fixed calculation as is normal with tracker tariffs, but it will change if the base changes, but in a fixed way.The original marketing was very clear and extremely detailed with worked examples, it just isn't made clear enough in the subsequent emails.
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Ultrasonic said:For future info., what all 'fixed' energy tariffs do is fix the standing charges and unit prices for the contract term. How much anyone has to pay depends on how much energy they use, with direct debit amounts adjusted as needed to cover this.Remember the saying: if it looks too good to be true it almost certainly is.0
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