Octopus Customers - Are you considering taking up their fixed price offer?

What_time_is_it

Blimy. Sorry I asked!

[Deleted User]

What_time_is_it said:

Blimy. Sorry I asked!

No apology needed. FWiW, and I am sure that this is of no help whatsoever, I have been an Octopus gas and electricity customer for over 5 years, and I will not be switching to their fixed tariff offer as I am happy with the time-of-use tariffs that I am on. These tariffs may not suit every consumer and carry some additional risk. 

born_again

What_time_is_it said:

@Alnat1 - Not really, no. I'm just trying to weigh up what will most likely be the cheaper option.

Sadly who knows. It could go either way.

We would all love the cheapest option, but as many found out a couple of years ago, that led to a lot of problems for many as the companies went under.
One would hope that will not happen to Octopus, but I bet Bulb customers felt the same way.

End of the day, tossing a coin is going to be as good advice as anyone hear can give, as even the experts can't agree what is going to happen.
Or even know what might happen in the rest of the world that would have a affect, just like Mr P has done.

lohr500

My logic could be seriously flawed here, but my thinking on this is as follows.

If Octopus (and a few other suppliers) are offering 12 month fixes at or around their current SVT rates, then either they must be reasonably confident that prices are going to average out at current rates over the next 12 months, or they are able to buy forward at or around today's wholesale rates to cover their exposure on the fixes.

I don't know if the suppliers can or do buy forward as I don't understand how their supply contracts work with the generators.

Either way, they must be expecting some stability over the next 12 months.

On that basis if I had the option of taking a fix I would. Little to lose if rates do work out slightly lower on average across the period of the fix. A lot to gain if the situation with Ukraine worsens and the energy market goes into meltdown again.

inspectorperez

Just a comment and not advice, but I have taken the Octopus fix for 12 months on the basis that it is marginally cheaper than the Flexible tariff (which is variable) and will see me through the winter months with certainty of cost.

I also value Octopus as a supplier who provides good usage information and a high quality of customer service which I appreciate.

[Deleted User]

they must be expecting some stability over the next 12 months

If that is the case, then I have to ask why are tariff exit fees so high? 

bristolleedsfan

Dolor said:

they must be expecting some stability over the next 12 months

If that is the case, then I have to ask why are tariff exit fees so high? 

Energy suppliers who charge exit fees to change tariff from 12 month fixed to another tariff within same company British Gas, Eon Next and Scottish Power being apparent exceptions who do not, policy is in place to save themselves money, exit fees acts as a deterrent for customers subsequently changing to a cheaper tariff.

Some might say well they have purchased energy at a certain price for 12 months etc etc etc that is not a new phenomenon Octopus for example knew that was how it worked when they were putting a convincing case for exit fees to be banned, had Ofgem done what Octopus were appearing to lobby for none of the energy suppliers would now by charging exit fees.

Energy crisis was in full flow when this tweet was posted by Octopus Energy Director of external affairs.

Quick answer to your question is because there is now no competition not to charge exit fees and no competitive switching to standard fixed rate tariffs.