Have I calculated this correctly to see if I should fix?

chris112

I'd really appreciate it if someone would let me know if I have worked this out correctly, according to Martins advice on switching to a12 month fixed tariff 

My annual usage is 3000 kWh 

octopus variable tariff im currently on:
Standing charge 41.49
Day rate 31.97
Night rate 21.34

12 month fix with octopus:
standing charge 41.49
standing charge 43.02
night rate 28.71

35% increase on current variable rate =

Day 43.16
night 28.8

so as the 12 month fix is under the 35%, is the genera consensus not to switch to the fix?

Thanks 

QrizB

Octopus's fixed rate deals haven't generally been very good recently when compared to other suppliers.

If Ofgem's anticipated £2800 dual-fuel cap is accurate, it's likely that the October cap will be close to Octopus's fixed rate.

You might not save anything vs. the capped variable but if you value peace of mind, the extra cost might be worth it all the same.

victor2

chris112 said:

I'd really appreciate it if someone would let me know if I have worked this out correctly, according to Martins advice on switching to a12 month fixed tariff 

My annual usage is 3000 kWh 

octopus variable tariff im currently on:
Standing charge 41.49
Day rate 31.97
Night rate 21.34

12 month fix with octopus:
standing charge 41.49
standing charge 43.02
night rate 28.71

35% increase on current variable rate =

Day 43.16
night 28.8

so as the 12 month fix is under the 35%, is the genera consensus not to switch to the fix?

Thanks 

You know your annual usage in kWh, but you also need to know your usage at day and night rates. From that you can calculate your annual cost on each tariff and compare that.
Martin said:

It now may be worth switching if you've been offered a fix that's no more than 35% above your current price-capped tariff, or 40% more if you very strongly value budgeting certainty.

So if the fix offered comes out below a 35% increase, it may be worth switching. It's a gamble either way, but the advantage of a fix is you'll know what your rates will be next winter. Consider also any exit fee on the fix, should prices not rise as much as expected.