Octopus 16M fixed tariff

rubble2

Hello,
I am on a 12m fixed tariff with Octopus and my account is currently over £300 in credit.
I have just received an email offer to sign up to a new 16M fixed tariff with the same costs per unit and standing charges which I am tempted to take advantage of.

The question I have is that on the new tariff quotation received they are showing my monthly DD at an increased amount. Given that I am in credit and the rates are staying the same am I committing to paying an increased monthly DD if I accept the offer? I am happy to continue paying at the existing monthly cost and I do not see the need for an increased DD payment.

Thanks

debitcardmayhem

you will have one and a half winters on the 16m fix, hence more expensive monthly totals. You can adjust your dd with octopus afterwards if you see fit

sadexpunk

came here to post a thread on this to ask a question, so may as well join in the chat on this one.
ive just had the same email, although we're on 'flexible octopus' (£200+ credit atm).  the figures they show on the 'compare your options now' just bamboozle me, so is there a general rule of thumb that the 16M will work out cheaper than the flexible one over those 16 months?

we're just a couple in a 3 bed bungalow if thats relevant.

i suppose theres zero exit fees so we could always go back at any time, is this correct?

thank you

Stumpy

I've just had the same email.  Currently on the Flexible tariff with around £400 in credit.  It is showing it is going to essentially "fix" mine at the current price I'm paying.  According to the "forecast" on this site, generally the cap will go up by around 7% so in theory it makes sense to go for this.  I'm not going to be any worse off than I am now, unless prices generally go down - at which point as there's no exit fees, I could just switch again. 

I think I'm just inherently suspicious :P

debitcardmayhem

One downside of the comparison sites is they will talk in terms of saving in DD terms. The algorithms that set DDs are vague, better if they say 
Elec 3500kWh @ xx.y per unit and 12000kWh gas @ x.yy per unit + 365*sc = £££££.pp / year vs similar figures for tariff 2.

peteh1

I have been offered the 16m fixed tariff but at a reduced DD compared to what I currently pay so suppose that means I wll underpay, do they do this to make it seem attractive I wonder ?

HampshireH

Received the offer too. £2.50 per month more on DD but that's fine as I'd been considering increasing it slightly.

Figured fixing makes sense when you can switch at anytime without fees

vic_sf49

I always ignore the "what you'll pay a month", and just compare the unit rates and standing charge. That way, it doesn't matter what calculation they use, you're comparing like with like.

And what you pay per month is mostly irrelevant, if you suddenly change your usage.

You can always adjust your direct debit in the app/online (within reason).

And as someone said, there's no exit fees, so you can change tariffs if a better one comes along.

brewerdave

The 16 month fix on my personal web page ,has appreciably higher unit rates (13% higher) than I'm on currently on my fix til October 25. My "dirty" calculation of the costs comparison shows that I'm marginally better off sticking and risking the increases next Winter