Please help...I need to change my tariff

SAC2334

Another option ( if you have smart meters ) is to start a switch now from Scot Power  over to Octopus ( for which Octopus will pay you £50 )  in an attempt to keep to much  lower  rates than SVT   and as soon as you are accepted on their flexible tariff , apply to go on their Tracker tariff .There has been a waiting list to go on Tracker but not sure if that is still in place now.
I joined Tracker last January and the rates have been roughly half price than  their standard variable rates  ,plus you have the fun of seeing what your rate is for today if you are so inclined , eg todays are gas 3.53 kwh, electric 15.5 p kwh in my area in Yorkshire  
You ve been on a good deal on your excellent fix and its worth trying if you can keep it going .Either way you will be going onto a better run supplier than S.P. IMO

naomibm

SAC2334 said:

Another option ( if you have smart meters ) is to start a switch now from Scot Power  over to Octopus ( for which Octopus will pay you £50 )  in an attempt to keep to much  lower  rates than SVT   and as soon as you are accepted on their flexible tariff , apply to go on their Tracker tariff .There has been a waiting list to go on Tracker but not sure if that is still in place now.
I joined Tracker last January and the rates have been roughly half price than  their standard variable rates  ,plus you have the fun of seeing what your rate is for today if you are so inclined , eg todays are gas 3.53 kwh, electric 15.5 p kwh in my area in Yorkshire  
You ve been on a good deal on your excellent fix and its worth trying if you can keep it going .Either way you will be going onto a better run supplier than S.P. IMO

Can you tell me what a tracker tariff is? And how it compares to a flexible? 

SAC2334

naomibm said:

SAC2334 said:

Another option ( if you have smart meters ) is to start a switch now from Scot Power  over to Octopus ( for which Octopus will pay you £50 )  in an attempt to keep to much  lower  rates than SVT   and as soon as you are accepted on their flexible tariff , apply to go on their Tracker tariff .There has been a waiting list to go on Tracker but not sure if that is still in place now.
I joined Tracker last January and the rates have been roughly half price than  their standard variable rates  ,plus you have the fun of seeing what your rate is for today if you are so inclined , eg todays are gas 3.53 kwh, electric 15.5 p kwh in my area in Yorkshire  
You ve been on a good deal on your excellent fix and its worth trying if you can keep it going .Either way you will be going onto a better run supplier than S.P. IMO

Can you tell me what a tracker tariff is? And how it compares to a flexible? 

Very popular tariff to get on if you can .It is better for you to get info direct from Octopus of how it works because it has some cons as well as lots of pro s..Certainly been all good for me the last 7 months .First step is move from Scottish Power  over to Octopus . 

CSI_Yorkshire

naomibm said:

SAC2334 said:

Another option ( if you have smart meters ) is to start a switch now from Scot Power  over to Octopus ( for which Octopus will pay you £50 )  in an attempt to keep to much  lower  rates than SVT   and as soon as you are accepted on their flexible tariff , apply to go on their Tracker tariff .There has been a waiting list to go on Tracker but not sure if that is still in place now.
I joined Tracker last January and the rates have been roughly half price than  their standard variable rates  ,plus you have the fun of seeing what your rate is for today if you are so inclined , eg todays are gas 3.53 kwh, electric 15.5 p kwh in my area in Yorkshire  
You ve been on a good deal on your excellent fix and its worth trying if you can keep it going .Either way you will be going onto a better run supplier than S.P. IMO

Can you tell me what a tracker tariff is? And how it compares to a flexible? 

On a tracker tariff, the price changes every day and the price cap does not apply.

On the flexible tariff (their name for standard variable), the price cap applies and the price changes usually once every three months at the moment.

Scot_39

Tracker - Octopus Tracker - is one UK supplier's variant of something not that uncommon in other countries - a directly linked to current market wholesale prices domestic tariff.

Tracker in Octopus's case is a tariff that directly links daily domestic supply prices to daily market wholesale rates - whereas the standard variable tariff is based on a 3 monthly updated iirc advance supply price as used by Ofgem to set standard variable tariff pricing.

Essentially Octopus tracker prices can change daily - Ofgem SVT only changes once every 3 months currently - averaging out short term peaks and troughs.

The gamble - is that on average over the year - it will work out cheaper. 

It often has in more stable conditions in other countries - but - the downside is - you carry more of the risk - in case of price rises.  

And unlike some trackers in other countries - it is not a fixed term contract - and has a lower cap level than some too (£1 / 30p from FAQ). So there is an escape clause if costs were to rise and last over a long period say.

Have a read at

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

and try read the FAQ as well if interested.

But in summer at least - especially in a windy period - it produces some very cheap daily kWh pricing for electric - and gas has been cheaper too.

And given you have just come off a fix - a 2 year fix - that change in volatility is a non trivial difference you would need to consider.

It's certainly not a set and leave it like your last fix - thats still a risk of paying over 3x SVT for electric in a bad price spike - as the one in Dec 22 - when average weekly electric rose to £400/kWh (£50-£100 either side - similar to recent).

But from posts in press around the big change on the 7th July iirc - when Octopus ended the restricted numbers trial - and opened up to all - it had recently been offering prices in the 8-20p range for electric over previous 30 days - against EPG / Ofgem cap averages 33p / 30p. 

But again note their FAQ warns prices could be much higher - "likely double" the exact wording - in winter. And as I say even worse in a Dec 22 type spike.

There are many posts on tracker here - including some sample pricing examples - so if read and interested - then can ask more about it from long term users here.

Theres even a 1/2 hourly version called agile - if your into load shifting - not using heavy use items say 4-7pm daily.

But as with all things - past pricing is no guarantee of future.

naomibm

I think I'm more confused than when I started!! 

Scot_39

Unless their is a fix offer from your existing provider - iirc SP open the selection window about 6 weeks before end of current fix - you need do nothing with SP.

You will go on SPs Standard variable tariff.

You can relax and compare other firms offers if you are happy to switch.

And you might want to talk to friends and family - as some firms offer a switching bonus to referrer and you in some cases of upto £50  - Octopus, EOn etc etc..

But just about all firms standard variable tariffs are the same (Octopus iirc last year were offering c 4% - around £10-12 pa off standing charges - but most were charging epg / ofgem cap rates )

And as I say most and from posts here mainly only 1 yr fixes appear at best to be only offering relatively small % savings.  Suppliers are clearly nervous re future price volatility given Ukraine etc.

The poster above suggested tracker - because for now and historically (but initially the supplier took far more of the cost risk as did the govt via epg discounts on their tracker tariffs - so much so it reported making a loss on it's trackers for months) the costs have been lower - as a way of saving much more money than a typical fix or svt rate..

But it's something you need to read up on - and then keep an eye on - not a set it and forget it rate.

naomibm

Scot_39 said:

Unless their is a fix offer from your existing provider - iirc SP open the selection window about 6 weeks before end of current fix - you need do nothing with SP.

You will go on SPs Standard variable tariff.

You can relax and compare other firms offers if you are happy to switch.

And you might want to talk to friends and family - as some firms offer a switching bonus to referrer and you in some cases of upto £50  - Octopus, EOn etc etc..

But just about all firms standard variable tariffs are the same (Octopus iirc last year were offering c 4% - around £10-12 pa off standing charges - but most were charging epg / ofgem cap rates )

And as I say most and from posts here mainly only 1 yr fixes appear at best to be only offering relatively small % savings.  Suppliers are clearly nervous re future price volatility given Ukraine etc.

The poster above suggested tracker - because for now and historically (but initially the supplier took far more of the cost risk as did the govt via epg discounts on their tracker tariffs - so much so it reported making a loss on it's trackers for months) the costs have been lower - as a way of saving much more money than a typical fix or svt rate..

But it's something you need to read up on - and then keep an eye on - not a set it and forget it rate.

Much appreciate-thank you! 

[Deleted User]

Fixed or SVT. Here is Cornwall Insight’s current view:

https://www.cornwall-insight.com/press/households-unlikely-to-benefit-from-fixed-tariffs-over-the-coming-year/

The above said, Cornwall Insight’s modelling is only as good as its underlying assumptions. (Think COVID and UCL Predictions).

 I see in today’s paper that following Putin’s recent Ukrainian wheat embargo, it is now predicted that the cost of bread products etc will increase. The same could happen to energy prices: last week, the Russians bombed facilities 200yards from a NATO country. Remember NATO adopts ‘The Musketeers’ philosophy if any NATO country comes under attack.

In sum, a choice between a variable and fixed tariff is based more on attitude to risk than cost savings in my view.

QrizB

Dolor said:

In sum, a choice between a variable and fixed tariff is based more on attitude to risk than cost savings in my view.

Cornwall Insight seem to agree with you.

From the article you linked:

“While there are currently limited financial gains to be made from taking up domestic fixed tariffs, they offer a sense of security to consumers amidst the recent volatility observed in the energy market. The desire for stable prices among households may increase the number of people who sign-up for the fixed deals.”