Switching from Loyal Octopus 12M Fixed to the new Octopus 12M Fixed May 2024 v4

Sinbad

Both my calculations and those of Octopus, contained in the “Could you pay less?” on my current bill, suggests that I can save by moving to this new tariff, even after paying the two 75.00 early exit fees on the Fixed taken out last October.

 Just curious if anyone else is in the same boat?

jayencee

Yes I had this exact conversation with them this morning as I couldn’t see how they had worked out how much I would save given the unit prices/standing charges.  They ran a calculation whist I was on the phone and based on annual consumption I would save £56 pa rather than the £130 odd quoted on my bill.  They couldnt confirm if this took into account the price cap coming in from 1 July or whether or not they would be bringing out new tarrifs.  I’ve decided to stay put for the moment although I have no exit fees.

jonthekeys

How does Martin get that the fix is 7% cheaper?  I've calculated my possible saving down to the last penny using Octopus's figures and my actual usage over the last year and however I do it the saving is only about 2%.  Any suggestions?

bristolleedsfan

jonthekeys said:

How does Martin get that the fix is 7% cheaper?  I've calculated my possible saving down to the last penny using Octopus's figures and my actual usage over the last year and however I do it the saving is only about 2%.  Any suggestions?

v3 was superceded last week by more expensive v4, ( MSE newsletter sent out yesterday still featuring v3)

My region v4 unit rates based on so called average consumption E 2700 - G 11500 MSE calculator says 4% cheaper than current energy cap

jonthekeys

The MSE calculator comes up with the same figures as my own working out, and the difference (for me, in North Wales - we're one of the most expensive in UK!) is 2%.

ProDave

For me Octopus are quoting 0.01p per kWh more for the 12 month fix than the present variable rate.  I too would like to see where the "12 month fix is 7% lower" comes from.

anyone phoned them and asked that question?

Or does Martin mean over the whole 12 months I would save 7%?  If I took the fix I would pay 2% more July to September but then avoid the expected 12% rise.  Is THAT what is meant by "7% lower"?

jonthekeys

Yes, Octopus take into account the projected changes.   Which is why the slightly increaed charges per kWh balance out to a saving. But it's still not 7%.(or even 4%) for me.

I wondered about that, so to check I took my last year's usage for each month and calculated each three-month period using my calculation of the presumed future rates (ie, April to June - as is; July to Sept - present variable rate less 7%; Oct to March - add to that 12%. Then I added the standing charge.  The result was only a few pounds different from both Octopus's figures and the MSE calculator!

And the difference from the fixed rate total (which also was only a few pounds different from MSE) was 2% - which was what the calculator said also.

jonthekeys

Update: new Octopus fixed rate reduces the difference to less than 1%.  

bristolleedsfan

ProDave said:

Or does Martin mean over the whole 12 months I would save 7%?  If I took the fix I would pay 2% more July to September but then avoid the expected 12% rise.  Is THAT what is meant by "7% lower"?

Yes  % saving is based on so called typical average use ( 2700 E, 11500 G) for 12 months and is a regional average, energy cap is quoted as yearly figure despite it changing every 3 months.

As has been pointed out May 2024 v4 has been supercede by June 2024 v1.

bristolleedsfan

ProDave said:

For me Octopus are quoting 0.01p per kWh more for the 12 month fix than the present variable rate. 

Octopus have been pricing 12 month fixed electricity kWh rate higher than most, gas lower than most others so as to position itself high on MSE fixed rate table for dual fuel so called typical average usage.