Octopus misleading 'Your fixed tariff is ending' emails August 2024

vandelayindustries

On 23 August 2024 Ofgem announced the new price cap prices effective 1 October 2024. 

MoneySavingExpert started showing these almost the same day (and updated articles is later August).

Yet Octopus sent me an invite to signup for Octopus 12M Fixed tariff, saying that my current fixed tariff ends 15 October.

They've mislead me, and potentially millions of others who took a fixed tariff having reacted to the almost identical email one year ago. How is that?

1) They've showed me a comparison with Flexible Octopus rates that are effective today (August) even though they know that they'd never apply to me. The rates would change 1 October (likely to the exact same - higher - prices that the Ofgem announced a week ago - and so if I did nothing I'd revert to those on 15 October.

2) They showed my comparison based on lower annual electricity consumption than they published on their bill only a couple of weeks ago. This would flatter their comparison if I plugged this into a price comparison engine.

This time last year I took the bait and switched to the Octopus 12M Fixed tariff, only to find a few weeks later they sent me another email saying that the best available tariff for me would be a loyalty fixed tariff. I realised that this had _better_ rates than they invited me onto a few weeks earlier. When I sent them an email, they didn't reply for over three weeks, and when I chased I got the predictable 'we are answering an unprecedented greater volume of emails than normal'. Yeah, because millions of their customers were in the same boat as me. When they finally did reply, they said that I couldn't get the new tariff as I'd agreed to a fixed tariff, and they'd already bought the energy, and there was an exit fee etc. 

Totally avoidable, especially as they claim to be a tech company. This is the kind of nonsense that The Big Six were known for, and who Octopus said that they were established to take on. Now they're just another clumsy Big Six.  

MP1995

If you are unhappy vote with your feet and leave them and also raise a complaint and if you really feel you have been misled escalate to the ombudsman service.

Just one thought. No one forced you to fix when you did, no one stopped you from looking elsewhere foe a better fix. At the time you must have checked the rates and come to the opinion this was right for you? As well as any costs to break the contract?

As well as the 14 day cooling off period.

MikeJXE

I fixed with Octopus last October too and knew there was an exit fee. 

It was my choice and I never lost out because I did the maths first

i can now leave the fix with no penalty and I will be doing the maths again 

I have never had to contact Octopus, not had recommendations from them either as I will do my own research. 

My choice so my fault if I make a bad decision. 

BarelySentientAI

vandelayindustries said:

1) They've showed me a comparison with Flexible Octopus rates that are effective today (August) even though they know that they'd never apply to me. The rates would change 1 October (likely to the exact same - higher - prices that the Ofgem announced a week ago - and so if I did nothing I'd revert to those on 15 October.

That's the rules.

They shouldn't be comparing with what a future tariff might be.

Reed_Richards

Terrible rules then.  Surely they shouldn't be comparing a tariff that will begin in October with current other tariffs?

Scot_39

Re 1)   I suspect there will actually be regulations on what prices they are allowed to use.

And what if you switched right now ?

Not everyone waits until the end of current term to do so.

Many where they could - exit fee free or supplier internal fix to fix etc would have switched over the summer  before fix rates went up  reflecting the emerging market trends - and forecasters predictions.

A fix taken last Oct when cap £1834 at today's TDCV - iirc July23 over £1900 but at old TDCV - so likely similar unit rates - would have easily have been beaten over the summer - reflecting the pricing behind the current £1568 cap.

Given the price difference - many might even have paid a low exit fee to do so if really had to.

I've switched out of 2 yr fixes within months  - certainly less than a year - because better deals available at same supplier - which allowed free switches to svt (less common) or another fix internally (more common at least at time as some other suppliers allowed too) - bypassing fees at the time - those requests out of final window  - were actioned "immediately"  (next working day iirc).

[Ofgem changes to supplier compensation on switching - during crisis and c30 firm collapses - arguably made exit fees far higher for a while - and suppliers attitudes more rigid - thats changed again now.]

So I'd be annoyed if they showed me a future comparison price  in that scenario.

And right now, with prices increasing, it's hardly a positive fix marketing message -  heres our price it's 8% higher than the svt  (figure for Aug Octopus fix in mse "fix or svt" guide table.  You might be more likely to select if it said here's our fix- it's still 2% lower than the next cap.

And arguably a worse thing to do when prices falling between caps like over spring and summer.  Here's our fix, it's cheaper than current svt, but that's going to fall - as it did  £238  as in Apr 24 (£1928 - £1690) then another £122 to £1568 in Jul 24.

Anyone considering a fix vs svt decision would surely be looking not just at current cap but future cap predictions in any case.

Re 2) That's just how the market works.

You cannot go back to Tescos a week after buying a tin of beans and say but you've dropped the price by 5p - I want my 5p back.

That's why you have to be told about exit fees before signing up. So as you are aware of the nature of the contract.

And why others might only have fixed at suppliers with large fees - who allow more options - free switching at least internally - to other newer deals if cheaper.

BarelySentientAI

Reed_Richards said:

Terrible rules then.  Surely they shouldn't be comparing a tariff that will begin in October with current other tariffs?

Things like the MSE Cheap Energy Club do the same thing - just with a note on the top added to say "this is what we think future prices might do".

That's why a lot of the advice seen around is things like "if your fix is less than 7% above the current cap"....

MSE did point this out to OFGEM (I think, there was a note somewhere about this before), but the determination was that it's irresponsible to account for one price cap change but not the other three (or seven) in a fixed term contract given that they could not be accurately known, whereas forcing everything to be the same baseline was a 'better', if knowingly inaccurate, comparison.

Reed_Richards

But surely it's similarly irresponsible of Octopus to be sending out a renewal invitation unnecessarily early, when the recipient can't make a comparison with what other tariffs will be at the time of renewal?

BarelySentientAI

Reed_Richards said:

But surely it's similarly irresponsible of Octopus to be sending out a renewal invitation unnecessarily early, when the recipient can't make a comparison with what other tariffs will be at the time of renewal?

It has been "suggested" to suppliers that they should be sending out renewals as customers approach the 49 day exit period at the end of tariffs.

MikeJXE

I have received a new offer from Octopus and after doing the maths I am choosing the new 12M fix

Compare the Market or Uswitch can’t find a better offer.

When I go through the process Octopus say it starts 16th October which I object to as I want to change now, when I last fixed it started immediately. 

I have emailed them for an explanation so see how it goes

bristolleedsfan

MikeJXE said:

I have received a new offer from Octopus and after doing the maths I am choosing the new 12M fix

Compare the Market or Uswitch can’t find a better offer.

I would be very surprised when filter option is changed to show all tariffs including switching direct Uswitch and CTM cannot find a cheaper 12 month fix - Just done it myself relatively low usage Estimated  current annual cost £768.63 - dual fuel - at least 6 cheaper options, cheapest £686, Octopus £802, higher users might save more. ( if I been paying attention you are a lower user lol)  Cheapest without any extra services £784