Loyal Octopus 12 Month Fix? £150 Exit Fee but £95 cheaper a year

IAMIAM

Is this worth switching too?
My bills are now saying octopus flexible is no longer the cheapest and I could save switching, but will flexible octopus become cheaper again (ie align with this current fixed deal) in say 3 months anyway? 

CSI_Yorkshire

Impossible to say what the price of anything will be in the future.

Flexible might get cheaper, it might get more expensive.  It might get cheaper and then a little bit later get more expensive.

jlfrs01

Snap - I decided to stay put rather than switch and lock myself in, particularly with the penalty if I move to a different tarriff or supplier. Besides, switching would only save £88 per year in my case so not exactly a busting amount.

bristolleedsfan

Currently a lot cheaper than conventional tariffs, kWh rate changes daily, smart meter requirement - Screenshot Yorkshire region.

https://octopus.energy/smart/tracker/

NightManager29

I have opted for this 12 month fix.

The price of a barrel of Oil is up for a 5th week in a row. In the USA pump prices are heading north again after being very low and the Stategic Oil Reserve is getting refilled which will take some oil off the market.

China is starting to suggest it needs to stimulate their economy to boost growth after a sluggish recovery post covid lockdown. Should it work then again more chinese will drive and fly adding pressure to oil stocks.

The war in Ukraine might get worse who knows? This could result in the oil price spikes should Russia decide to mess about by blocking grain exports or ships carrying goods near the Ukraine ports like Odessa?

Last winter was mild in Europe this winter we might not be so lucky?

Do any of us think that prices are heading back to their old prices?

I think its better to take the certainty of paying a few quid less then the current price cap for 12 months peace of mind.

I do not have a crystal ball but I expect the chances of my energy bill becoming £25 a month dearer are greater than it becoming £25 a month cheaper and if I lose out on say a £10 cut in the months ahead I will accept it.

Chrysalis

On another thread I posted what I would use as a guideline.

It was if the exit fee was less than 6 months of savings I would consider it worth trying.  This deal doesnt fit that, so my suggestion would be no, but remember its only my opinion.

For a £150 exit fee I would only consider tariffs that would save me at least £300 for the year, as a light user that becomes quite unlikely, but more likely for heavier users.

This way if say in 6 months things look different, you then just equalising things by exiting.

There is one outlier on this though, zero usage fees (standing charge), that is very likely to keep going on a upward trend for a while, and has already got another increase penned in during 2024.  So fixing SC is less of a gamble.

IAMIAM

Is this worth fixing to now? Seems top of Martins league table as its 5% cheaper than price cap......just can't tell if its worth it....

bristolleedsfan

IAMIAM said:

Is this worth fixing to now? Seems top of Martins league table as its 5% cheaper than price cap......just can't tell if its worth it....

The only thing that has changed since you started this thread is Moneysavingexpert have updated its fixed rate table reflecting July version that Octopus launched the morning after Fuse Energy was plugged/highlighted both by ML on Twitter and by Moneysavingexpert.as being £50 below energy cap for electricity with lower standing charge than other variable tariffs.

IAMIAM

Interesting, will review

[Deleted User]

IAMIAM said:

Is this worth fixing to now? Seems top of Martins league table as its 5% cheaper than price cap......just can't tell if its worth it....

LNG prices rose by 49% yesterday. Octopus Tracker Gas is 20% more expensive today. I doubt that Cornwall Insight’s modelling takes into accounts such things as a possible major strike in Australia when assessing price trends.

gt94sss2

https://www.chroniclelive.co.uk/news/cost-of-living/ofgem-warning-energy-switching-money-27501858