Octopus rate offer and my credit

Flakie

I’m with Octopus and have just come to the end of my fixed rate. I’ve been offered two choices, one a fixed rate and one variable. The fixed rate is for 12 months and has exit fees. As my estimated annual bill is around the same as the price cap I’ve read on MSE that both would be suitable so have decided to go for the fixed rate. My estimated annual bill is around £3372 and my monthly bill is going to be £281 a month. I’m £681 in credit. Should I reclaim a lot of my credit if the monthly amount will cover the annual bill or can I reduce my monthly bill and let them use the credit? Not sure which way to go. 

Dolor

You could just reduce your monthly DD to £224.5 per month if you think the annual estimate is correct. You can do this via the App.

crumpet_man

Given the current interest rates I would rather have as little credit with Octopus as possible and just pay for what I am using.  Of course, I would budget for the extra use in winter and have that money available from a savings account when required.

Alnat1

Octopus are happy for you to pay by variable DD. You get a monthly bill and the full amount is taken 10-14 days later by DD. Give them a ring or contact via twitter and ask to pay this way.

Dolor

Alnat1 said:

Octopus are happy for you to pay by variable DD. You get a monthly bill and the full amount is taken 10-14 days later by DD. Give them a ring or contact via twitter and ask to pay this way.

That is going to result in some very high bills in the Winter. I just adjust the DD slider. I maintain a credit balance sufficient to cover the following month’s bill in full. In 5 years, Octopus has never questioned this as my account has never gone into a debit balance. I am currently paying £10 a month as I get export income from my solar panels.

Alnat1

@Dolor I also get income from my panels and this builds up a nice credit over summer. I have a VDD set up but since joining Octopus in April last year I haven't had to make a payment, the export credit/govt help covered all electricity and gas costs.

I do stick some money in a regular saver account each month to cover any bills over winter and get paid 6.17% interest.

I should have said in my earlier response that with variable DD you do need to put money by to cover the higher energy costs in winter.