Stay on fixed tarrif or switch to variable

robdex1

Octopus contract is coming to an end. We have electricity only and they are saying we can stay on the fixed tariff where the unit rate is 24.26p/kWh, or we can switch to flexible tarrif at 25.21 p/kWh. I believe the cap is going up again in January so is it better to stay on the fixed? Also what I don't understand is that from what I have read the cap from Jan will be 24.86p/kWh, so how come the flexible tariff is higher at 25.21. Isn't that over the cap? Am I missing something?

Netexporter

Prices vary by area, so you may be comparing a national average price with your specific area.

Things are looking a bit volatile, with high wholesale gas prices in Europe next summer, so the fix might be wise, as long as the exit fee isn't too high.

Have you got a smart meter? You can pay substantially less, on average, with a suitable TOU (time of use) tariff.

QrizB

robdex1 said:

Also what I don't understand is that from what I have read the cap from Jan will be 24.86p/kWh, so how come the flexible tariff is higher at 25.21. Isn't that over the cap? Am I missing something?

As above, the cap varies by region. 24.86 is the average but some regions are a little higher, others a little lower.

25.21p is the current cap for Eastern region; from January it will be 25.57.

See table here:

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region

robdex1

Netexporter said:

Prices vary by area, so you may be comparing a national average price with your specific area.

Things are looking a bit volatile, with high wholesale gas prices in Europe next summer, so the fix might be wise, as long as the exit fee isn't too high.

Have you got a smart meter? You can pay substantially less, on average, with a suitable TOU (time of use) tariff.

Thanks that makes sense. Yeah we do have a smart meter