Should we stick now with octopus and wait until September to fix to a new tariff?

Tabby026

We are on a flexible tariff with Octopus Energy - our electric kWh useage is now 28.40p and our electric standard daily charge has increased to 51.36p. Our gas KWh use age is now 7.48p and our gas standard daily charge is 27.22p.  We have gas central heating but our oven etc is electric. 

Ovo are doing a two year fixed tariff with electric at 39.14p kWh useage and an standard daily charge of 53.56p the gas tariff is 11.82p kWh useage and 27.51p standard daily charge. Do we stick with Octopus until say September and then compare deals then or fix for 2 years now? It just scares me that prices are going to keep on rising and the government are doing nothing about it.

caeler

Check out octopus’s loyal fix, I don’t know if it’s any good but it may achieve what you want, no idea if it’ll still work out cheaper than the October cap though sadly. 

bristolleedsfan

caeler said:

Check out octopus’s loyal fix, I don’t know if it’s any good but it may achieve what you want, no idea if it’ll still work out cheaper than the October cap though sadly. 

Extremely unlikely to work out cheaper than October energy cap

RetSol

In your shoes, I would stay with Octopus simply on the grounds that it is a well-run company with a sustainable business model.

I am a Bulb customer who thought about signing up with Octopus years ago but fell for the hype! 

Mstty

Tabby026 said:

We are on a flexible tariff with Octopus Energy - our electric kWh useage is now 28.40p and our electric standard daily charge has increased to 51.36p. Our gas KWh use age is now 7.48p and our gas standard daily charge is 27.22p.  We have gas central heating but our oven etc is electric. 

Ovo are doing a two year fixed tariff with electric at 39.14p kWh useage and an standard daily charge of 53.56p the gas tariff is 11.82p kWh useage and 27.51p standard daily charge. Do we stick with Octopus until say September and then compare deals then or fix for 2 years now? It just scares me that prices are going to keep on rising and the government are doing nothing about it.

Hey Tabby

I guess it's down to if you think prices will rise in October '22 April '23 and October '24. That's what you will have to consider but remember that October '24 rise will have to see electricity rise to well over 50p kwH or even more for you to break even as you are paying a very high rate right from now.

Personally I wouldn't consider a fix that high at this stage.

victor2

Tabby026 said:

We are on a flexible tariff with Octopus Energy - our electric kWh useage is now 28.40p and our electric standard daily charge has increased to 51.36p. Our gas KWh use age is now 7.48p and our gas standard daily charge is 27.22p.  We have gas central heating but our oven etc is electric. 

Ovo are doing a two year fixed tariff with electric at 39.14p kWh useage and an standard daily charge of 53.56p the gas tariff is 11.82p kWh useage and 27.51p standard daily charge. Do we stick with Octopus until say September and then compare deals then or fix for 2 years now? It just scares me that prices are going to keep on rising and the government are doing nothing about it.

If you were an "average" user according to Ofgem, you would be using 2,900 kWH of electricity and 12,000 kWh of gas annually.

That would cost you £2,008 on your current tariff and £2,849 a year on the two year fix. So an extra of £841 per annum IF the variable prices didn't change, but we know they will, we just don't know by how much.

If the rates increased by an overall 42% in October, your cost would be matching, but you would of course have paid more between now and October. What happens to the variable rates thereafter is anybody's guess.

You can see why most people now say stay on the SVR. Consider also what the exit penalty would be for leaving a fix early, should it not turn out to be so attractive.