Octopus 12m loyalty fix

Groundhog22

Like everyone, no idea what to do.
im a high user as I’m disabled and rely on electricity. 

Currently on  flexible octopus - 
Elec 28.29p per kwh
S/C 47.88 per day
Gas 7.43 per kwh
S/C 27.22 

Offered octopus loyalty 12m from 2/9/22
Elec  69.34 kwh day
         47.87 kwh night
         47.96 s/c 

Gas   18.90 kwh
          27.22 s/c

projected usage 
elec - 5000 kwh per annum 
Gas    13,000 kwh per annum 

( should add the elec will be less this year as we have got rid hot tub but still a high user owing to my disability) .

price cap figures are less obviously but due to rise again in January.

no exit fees from this plan 

they’ve estimated a monthly dd of £550 🙈, could they reduce as I’m in credit and I know my projections are elevated because of the hot 

Tub.


thank you 🙏

Mstty

Firstly do you know what extra support you are getting financially to help?

https://www.gov.uk/guidance/cost-of-living-payment#disability-cost-of-living-payment

Secondly I wonder why you still have economy 7 tariff with gas central heating?

Lastly Octopus do seem good with letting people adjust their payments online so if you know your usage you can take control there.

Groundhog22

Hi thanks for your response.
i will have some financial support as I’m disabled and my husband is a pensioner. 

I’m assuming the cheaper nighttime tariff is because previously I had one and we try and use our dishwasher and washing machine over night. I didn’t specifically ask for it , I think it’s part of the tarrif.  

Thank you for your response .  It’s just the kwh figures look so alarming I’m afraid of making a bad decision 

Mstty

I wouldn't want to be making the decision on a fix right now, that said if you do go for a fix check it comes with a 14 day cooling off period as there should be some news from the Government over the next 2 weeks to either say that's it, no more money or there may be more help on its way. It may change your decision.

Removed - like I said I think so it's good to go on economy 7 advice below👍

bristolleedsfan

Mstty said:

I wouldn't want to be making the decision on a fix right now, that said if you do go for a fix check it comes with a 14 day cooling off period as there should be some news from the Government over the next 2 weeks to either say that's it, no more money or there may be more help on its way. It may change your decision.

I think the general rule of thumb on economy 7 is if you use 75% at night and 25% during the day it is worth it. If not a single tariff is cheaper.

No exit fee tariffs make 14 day cooling off period irrelevant.......

Hardly any difference between day rates, big difference between day and night rates on tariff being considered ....

pochase

The ratio for day to night use the Ofgem rules for the E7 caps are based on is 58/42.

Let's take EDF East Midland current SVT for E7 and single rate.



As you can see the break even is if you use a minimum of 35% at night, not 75%.

bristolleedsfan

O/P  states he is on 1 rate flexible variable tariff and is considering 12 month Eco 7 fixed rate where day rates between Eco 7 and single rate tariff clearly hardly any difference. 


 

pochase

Where do you get the 75% rule of thumb from? It is clearly wrong. It is more the other way around.

Here is the same calculation for Octopus South East region. You already start saving at slightly over 25% night rate, at 25% night usage E7 is 25p more expensive.

pochase

And here the calculations for the fixed tariff you posted. 

You are already saving money on E7 if you use less than 10% at night.

MWT

Groundhog22 said:

I’m assuming the cheaper nighttime tariff is because previously I had one and we try and use our dishwasher and washing machine over night. I didn’t specifically ask for it , I think it’s part of the tarrif.  

The offer of an E7 tariff probably reflects your meter profile, so at some point in the past you were on an E7 tariff and the automated systems that generate your options for the new tariff have to use the meter profile.

Octopus will be happy to keep you on a single rate or move you to an E7 tariff, just work out if you use enough energy overnight for it to make sense to move to E7...

QrizB

pochase said:

As you can see the break even is if you use a minimum of 35% at night, not 75%.

Last autumn I posted the formula for working this out (here).

If my presentation of the formula doesn't make sense, here it is in someone else's post from 2007. I think they've presented it better than I did.

For the Flexible tariff quoted above, the break-even works out as 74.8% day rate.

For Loyal, it's 92.6% day rate.