New E.ON Fixed Rate deal starting July.

michaels

Xbigman said:

In a rational market any tariff linked to wholesale prices should, as now, lead the market down but it should also lead the market up. You can bet your life that there will be a mass bailout if wholesale prices start to rise next winter. Right now Octopus are taking on the full liability for everyone who leaves any wholesale dependent tariff. If these tariff's were to become mainstream that policy would have to change. They would simply have to start locking customers in. They are currently restricting Tracker to 50 new customers per day. The waiting list is 6 months, so about 9000 customers then. And that counts as the tariff being swamped. Total number of customers on wholesale dependent tariff's? I'd say less than 15,000 out of their (allegedly) 5 million customers. 

I'm very glad to have been on Agile for the last year. I'm rolling over onto the new version of Agile for the summer but I'm looking out for a decent fix to cover my winters usage. I'd like there to be a fixed time of use tariff but I've only seen one and it was very pricey. Right now any tariff that is around mid 20's a kwh for electric and about 7p a kwh for gas is one I might go for. 



Darren

It is also worth noting that they have already hedged all their customers on the cap so any they then allow to switch to agile they will actually have purchased their power at the cap rate and b selling it back to them at the overnight rate.  Weirdly it would make more sense for them to only offer Agile to new customers switching form other suppliers....

Edit:  Although isn't there some rule that for new customer acquisitions the gaining supplier has to compensate the losing supplier for the cost of the hedged cap rate energy they have bought ahead?!

QrizB

michaels said:

Edit:  Although isn't there some rule that for new customer acquisitions the gaining supplier has to compensate the losing supplier for the cost of the hedged cap rate energy they have bought ahead?!

Yes, the Market Stabilisation Charge:
https://www.ofgem.gov.uk/publications/market-stabilisation-charge-dashboard

bristolleedsfan

michaels said:

Xbigman said:

In a rational market any tariff linked to wholesale prices should, as now, lead the market down but it should also lead the market up. You can bet your life that there will be a mass bailout if wholesale prices start to rise next winter. Right now Octopus are taking on the full liability for everyone who leaves any wholesale dependent tariff. If these tariff's were to become mainstream that policy would have to change. They would simply have to start locking customers in. They are currently restricting Tracker to 50 new customers per day. The waiting list is 6 months, so about 9000 customers then. And that counts as the tariff being swamped. Total number of customers on wholesale dependent tariff's? I'd say less than 15,000 out of their (allegedly) 5 million customers. 

I'm very glad to have been on Agile for the last year. I'm rolling over onto the new version of Agile for the summer but I'm looking out for a decent fix to cover my winters usage. I'd like there to be a fixed time of use tariff but I've only seen one and it was very pricey. Right now any tariff that is around mid 20's a kwh for electric and about 7p a kwh for gas is one I might go for. 



Darren

It is also worth noting that they have already hedged all their customers on the cap so any they then allow to switch to agile they will actually have purchased their power at the cap rate and b selling it back to them at the overnight rate.  Weirdly it would make more sense for them to only offer Agile to new customers switching form other suppliers....

Screenshot posted on another thread where Octopus Chief mentioned to someone along the lines that Ofgem required suppliers to hedge virtually all customers energy purchases.

Xbigman

My understanding is that Octopus have hedged their wholesale based tariff's against a big spike in costs but that comes at the risk of prices going lower than expected and Octopus then selling energy at a loss. I feel that wholesale based tariff's will not be anything other than a niche product.


Darren

bristolleedsfan

Xbigman said:

My understanding is that Octopus have hedged their wholesale based tariff's against a big spike in costs but that comes at the risk of prices going lower than expected and Octopus then selling energy at a loss. I feel that wholesale based tariff's will not be anything other than a niche product.


Darren

https://forums.moneysavingexpert.com/discussion/comment/79885382/#Comment_79885382

Mstty

@Xbigman @bristolleedsfan

Here's the full tweet Greg (or AI Greg) sent

NervyBuyer

I've been offered the same E.ON fixed deal but can't see anywhere that you can avoid the £75 exit fee - it states 'Exit fees (if you cancel this tariff before the end date)' i.e. cancel tariff, not just change supplier. For me that's a significant fee because £150 for both fuels is on average 5 months' bills (at the current, more expensive, rate), although I probably have exceptionally low usage.

Mstty

NervyBuyer said:

I've been offered the same E.ON fixed deal but can't see anywhere that you can avoid the £75 exit fee - it states 'Exit fees (if you cancel this tariff before the end date)' i.e. cancel tariff, not just change supplier. For me that's a significant fee because £150 for both fuels is on average 5 months' bills (at the current, more expensive, rate), although I probably have exceptionally low usage.

If you have exceptionally low usage perhaps important to you us the standing charges are they lower?

bristolleedsfan

NervyBuyer said:

I've been offered the same E.ON fixed deal but can't see anywhere that you can avoid the £75 exit fee - it states 'Exit fees (if you cancel this tariff before the end date)' i.e. cancel tariff, not just change supplier. For me that's a significant fee because £150 for both fuels is on average 5 months' bills (at the current, more expensive, rate), although I probably have exceptionally low usage.

Someone posted tariff info elsewhere before it was posted here

jbuchanangb

The exit charges apply if you change supplier. Small print in the Ts & Cs says:

You can arrange to switch to another of our tariffs or to another supplier at any time without giving notice, but if you switch supplier before we send you your renewal notice we may charge you an exit fee. See your confirmation letter for details