Octopus Flexible Tariff and 12 Month Fixed Tariff from 01 July 2024

Mum161111

In May this year I received an email from Octopus about their Flexible Tariff and 12 Month Fixed Tariff from 01 July 2024.  My  Loyal Octopus 12M Fixed June 2023 v1 ends on 30 June 2024 and there is a £75 per fuel early exit penalty.

Since receiving the Octopus email in May the Government announced the new cap to be effective from 01 July.  I have not been able to see if there is any difference between the new flexible cap rate and the one Octopus suggested in May for their Flexible Tariff from 01 July.  I sent an email to Octopus and, so far, I am waiting to hear from them.

Does anyone know what the Government Cap rates are from 01 July and if the rates include vat, please?  I am in South Scotland Area.  I am not sure if the Flexible Octopus rate offered from Octopus in May (from 01 July 2024) is for the present cap rate or if it is for the rate subsequently announced by The Government.  On my Octopus Account I can only see the flexible rate and it is the same as the one in the May email from Octopus.

Thank you.

spot1034

The flexible tariff will reflect the present price cap until July 1st, when it will be reduced. It is, basically, the price cap (more or less) and moves in line with it every three months. However it is then likely to increase again in October. If you do nothing, you will automatically be put on this when your fix ends.

The fix you were offered probably isn't available any more as rates are changing quite fast at the moment due to volatile wholesale prices. A fix you sign up to now will be more expensive than the flexible rate at first but might turn out cheaper beyond October, but there is no guarantee where prices are headed - it does look at present as if they might rise quite sharply but that could change. 

You are within 49 days of the end of your fix which means you can leave it without incurring an exit fee if you wish to do so.. 

Mum161111

Thanks for replying spot1034.  It sounds as if I've been too slow.  I found it a bit confusing and, thanks to your reply, I now see that Octopus contacted me in May knowing that I could change before 1st July without penalty.

UPDATE:  After contacting Octopus I received an email this afternoon with the offer of two possible tariffs from01 July.  One was flexible and the other a 12 Month fixed contract.   In order to have some certainty for the year from  01 July I decided to accept the 12 Month fixed contract - I had to decide today as the offer was likely to change after midnight.  I was influenced by the "no early exit penalty" and, although I hope to stay with Octopus, I can, if necessary change without penalty.

I did not ask but, since there is no exit penalty,I wonder if I would be eligible if Octopus, after 01 July, have available a fixed contract at a cheaper rate.  Regardless of that possibility I really do feel 'better' knowing where I stand for gas and electricity charges for the 12 months from 01 July.

Organgrinder

My tariff will end on July 27 so I contacted octopus today who said I would be charged a termination fee until 45 days before. Naughty naughty. Ofgem clearly state that the “Switching Window” means the period which begins when the Domestic Statement of Renewal Terms is provided to the Domestic Customer, or 49 days before the date the fixed term period of a Fixed Term Supply Contract is due to end (whichever is earlier) and which ends on the date the fixed term period of a Fixed Term Supply Contract is due to end.