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Original poster

Am I missing something here? Octopus energy.

103 replies

Bagelsandbrie · 16/03/2022 20:23

We are with octopus and our fixed rate ends soon. They’ve sent us an email with options. Obviously like everyone else I am dreading the hike in energy prices and want to do the best thing in terms of variable / fixed rate.

But they’ve sent me this … pic attached. Why would anyone choose to fix at those prices? I understand the variable rate may go up but is it really likely to go higher than the horrendous fixed rate options?

I’m best just to stick with variable, aren’t I?

Am I missing something here? Octopus energy.
OP posts:
Thread gallery
6
SexiestDogWalker · 17/03/2022 12:12

My current annual amount with Octopus is £2,280.
I can fix at £5,010.

No fucking way!!

SexiestDogWalker · 17/03/2022 12:14

Pissed off with octopus though. They never log my meter readings, every bill is estimated and I have gone from paying £88 a month when I signed up two years ago to £286 a month now. I'm not consuming more. The prices haven't gone up that much. It is so irritating but now is definitely not the time to move

Original poster
Bagelsandbrie · 17/03/2022 12:17

@SexiestDogWalker

My current annual amount with Octopus is £2,280. I can fix at £5,010.

No fucking way!!

ShockShock Wow that’s so high. I thought mine was bad!
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dementedpixie · 17/03/2022 12:20

@SexiestDogWalker

Pissed off with octopus though. They never log my meter readings, every bill is estimated and I have gone from paying £88 a month when I signed up two years ago to £286 a month now. I'm not consuming more. The prices haven't gone up that much. It is so irritating but now is definitely not the time to move
Are you submitting readings when they email you? Have you contacted them about the meter reading issues?
Meredusoleil · 17/03/2022 12:27

@SexiestDogWalker

Pissed off with octopus though. They never log my meter readings, every bill is estimated and I have gone from paying £88 a month when I signed up two years ago to £286 a month now. I'm not consuming more. The prices haven't gone up that much. It is so irritating but now is definitely not the time to move
This is what I am worried about too.

We started with Octopus in 2020 on £78 a month dd. I have increased that to £100 but we are still in debit due to this long winter weather dragging on!

I do submit my meter readings every month like clockwork though. So I can't even blame the numbers 😐

dementedpixie · 17/03/2022 12:30

I have increased my direct debit to £160 to help cover the price rise in April. I'm slightly in credit so that helps.

dementedpixie · 17/03/2022 12:32

Just checked and used £170 of gas/electric last month. That was my first month of SVR after my fixed rate ended

ancientgran · 17/03/2022 12:34

I think people are often in debit at this time of year, when they are using less over the summer they clear the debit and hopefully go into credit. That is the way a level DD over the year is supposed to work. Unless it is a really big amount in debit I don't think it is anything to worry about.

I've been really happy with Octopus, they reply to queries really quickly in my experience and I submit my readings on the first of the month and get a bill usually within 24 hrs. I wouldn't go back to BG.

ancientgran · 17/03/2022 12:35

We are high users, DH is disabled and uses alot as he needs to keep warm or the pain gets worse and he has electric gadgets that help him.

dementedpixie · 17/03/2022 12:36

I really like that you get an almost immediate update to your balance once you submit your readings.

BarbaraofSeville · 17/03/2022 12:37

@SexiestDogWalker

Pissed off with octopus though. They never log my meter readings, every bill is estimated and I have gone from paying £88 a month when I signed up two years ago to £286 a month now. I'm not consuming more. The prices haven't gone up that much. It is so irritating but now is definitely not the time to move
We've only been with them since about October last year, but they've been great with asking for monthly readings and showing the running balance in the app.

Are you saving them when you submit them, there's a couple of confirmation screens before the reading is finalised.

If you've been with them 2 years and they've never sent a proper bill, what do they say when you contact them about it? You say the bills are estimated but surely if their estimated are a long way from what your meter shows, you would have gone to the Ombudsman by now if they can't get the basics of billing right.

DelilahBucket · 17/03/2022 12:38

We've remained on variable. Our payments are going up 50% in April, having held steady up until now. I still think staying on variable is the best decision. We've cut our usage where possible so with a few meter readings that should impact our payments.

PineappleWilson · 17/03/2022 13:01

We're with Octopus as our old company Avro went bust. By my maths there's about £1 in the difference between the variable rate and the fixed rate they're offering, if prices rise by 50% in October. We're only being offered a fixed rate for 10 months and if we're "only" on the april price increase until October, we'd be half way through the fixed rate period before it becomes cost effective to fix. I think we're £260 a year better off by sticking with the variable rate over the next 12 months.

Leftleg · 17/03/2022 13:06

I haven't read the whole thread yet, but can you click on Show rates and charges to see what prices are being offered? You can then compare with the new April price cap prices.

Clawdy · 17/03/2022 13:22

Checking in here .

WobblyLondoner · 17/03/2022 13:36

Another Octopus customer here, currently on variable and paying £117 per month. If we stay on variable they propose putting our payment up to £208.

Re the discussion upthread and what the new payment is based on - the email says it is based on our current use and the increase in the cap in April. It says:

We've based our recommendation on your current Octopus prices, and taken into account the Flexible Octopus increase in April. The other factor is your official usage estimate.

I'm sticking with variable..

BridesmaidPanic · 17/03/2022 14:25

They're all as mad as each other at the moment.

I'm on the variable rate because I also refuse to fix it at their stupid prices.

Scottish Power is currently telling me that based on current rates my estimated annual cost is £2,871 but have also told me that my electric and gas will be going up by £981 when the cap increases, so £3,852 in total.

On the other hand, I could take one of their "excellent" fixed price deals for 1 year to an estimated annual cost of £5,965...

Er.... maybe not then!

Ecosralayce · 17/03/2022 16:15

I have done so much reading up about this recently as Im so stressed about it all! What I now know that may help you-

You need to compare the unit rates for each tariff, ignore the estimated direct debit amount , that is almost meaningless and will vary with how much you use.
Be aware of the April prices - most companies have set these rates at, or very close to, the new price cap. Most are very similar. My variable tariff rates for example are 27.36p/KWh for electricity plus 48.3p daily stnading charge and 7.38p/KWh for gas plus 27.36p daily standing charge.
Use these prices to compare to prices being offered on fixed rate deals.(you need to click on the details bit past the monthly figure)
ALL fixed rate deals will be higher currently as companies are trying to take into acount the predicted further increase in October when the price cap will rise again. For example my current fixed rate prices offered by EDF are 51.79p/KWh for electricity and 16.602p/KWH for gas. Obviously these rates are considerably higher than the variable tariff currently.(Note also the price cap- ie maximum they can charge- only applies to variable tariffs which is why they can charge so much more for fixed rates.)
Martin Lewis is now advising it might be worth fixing if the fixed rates are 25% or less above variable tariff.
The rates offered for fixed tariff will vary , sometimes drmatically, each day. A few weeks ago my offered rates for fixed tariff were much lower (and yes, I wish to goodness I had gone with them then!) But worth checking daily as the wholesale price of gas is so volatile at the minute.

For now, I'm sticking with the variable tariff. I have done everything posisble to cut down my usage as much as possible to try to build a buffer before next October. But tbh Im dreading next winter as imagine it will be cold, dark and grim.Sad

Ecosralayce · 17/03/2022 16:18

also - a others have said some are now predicting the next increase in October could be by as much as 45% so worth keeping an eye on these estimates when comapring fixed deals.
A lot will also depend on the ukraine situaiton as that has had a massive impact in the past 2 weeks, on top of the already bad situaiton.

ENoeuf · 17/03/2022 16:20

I don’t really understand the prices quoted. If you fix at a certain amount per month isn’t that based on usage? Our dd has been increased several times to avoid an underpayment. I’m confused about why fixing is anything other than a guess. Or is it fixing the cost per unit and that’s the probably monthly dd?

whirlyhead · 17/03/2022 16:24

I'm with a 100% green energy provider (Good Energy) who are exempt from the price cap, so I'm paying the full rates (doubled since this time last year). My monthly usage currently (actual, not estimated) is just under £300 and that's with my central heating only on a max of 3 hours a day, thermostat set to 19 degrees. There are 2 of us in a very well insulated 3-bed terrace. So just thank your lucky stars that you are all subject to the price cap!

dementedpixie · 17/03/2022 16:25

It's the kWh rate that's fixed not the monthly direct debit. The DD may not reflect your actual usage so isn't a good way to compare tariffs

BarbaraofSeville · 17/03/2022 16:27

The cost per unit is fixed. However they base the direct debit on estimated usage, which could change, remember that a lot of people will have started to use more due to WFH or furlough or even cooking more because you couldn't eat out for a lot of the pandemic.

Also it's not unknown for suppliers to reel people in with a low estimated usage, knowing that many people don't look beyond this, and then it's raised later.

Plus they all have their own algorithms as to when in the year they want you to be at zero to account for seasonal variations and also to start paying the new higher prices. It's been known for months that unit rates are going up, so some suppliers are asking customers to start paying higher direct debits before others, either to ease them in, or improve their own cashflow.

dementedpixie · 17/03/2022 16:28

@whirlyhead

I'm with a 100% green energy provider (Good Energy) who are exempt from the price cap, so I'm paying the full rates (doubled since this time last year). My monthly usage currently (actual, not estimated) is just under £300 and that's with my central heating only on a max of 3 hours a day, thermostat set to 19 degrees. There are 2 of us in a very well insulated 3-bed terrace. So just thank your lucky stars that you are all subject to the price cap!
Eh? I just looked up Good Energy and they have standard variable rate tariffs. Are you sure you arent on a fixed rate?
whirlyhead · 17/03/2022 16:46

@dementedpixie, I'm on the SVR, but their SVR isn't subject to the price cap. So my current electricity rates are 34.19p per kwh, 30.23p standing charge per day. Gas is 8.15p per kWh, 32.95p standing charge per day.

Their customer service is great though, and I figure I'm helping the environment!!