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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Just had an offer from Octopus

382 replies

quicklybeendrivenmad · 23/08/2022 16:01

Octopus energy
Log out
Your current tariff
Flexible Octopus
Unit rates
Electricity: 27.35p per kWh
Gas: 7.28p per kWh
Standing charges
Electricity: 48.26p per day
Gas: 27.22p per day
Your new tariff options
Octopus 12M Fixed
£989.12
monthly estimate
Loyal Octopus 12M Fixed
Most popular
£945.53
monthly estimate
This tariff features 100% renewable electricity and fixes your unit rates and standing charge for 12 months. There are no exit fees, so if you change your mind, you're in control.
Your new quote
£11,869.50

God knows where these figures have come from, last months gas was £19 and Electric £180!! Who the hell would sign up to £989 per month at nearly £12k a year. Love how they say Loyal Octopus "Most popular" popular to who? Think they mean them.

OP posts:
Thread gallery
31
Mumtofourandnomore · 23/08/2022 19:31

Deptofdebt · 23/08/2022 19:10

Can I ask a silly question?? I assumed the rising cost of gas/power was due to fuel shortages (like gas etc, war in Ukraine..) so why are Octopus (as a renewable energy company) increasing so much??? Makes no sense to me!?

Renewable energy means that you receive exactly the same energy as everybody else (because once power is generated it is transported through the same grid connections etc). The difference is that your supplier commits to buying a renewable certificate to match your consumption, which proves they have purchased offsetting energy from a renewable source. Note that the cost of renewable certificates as also rocketed, and it’s an add-on to normal electricity, so green tariffs are likely to be higher still.

Wishyfishy · 23/08/2022 19:39

The other thing that I think is really problematic in quoting in £ is that it makes it seem like a done deal and that there is nothing that can be done. I really, really feel for people who don’t hear their homes, worry about using the oven etc already but for a lot of people expecting bills of £600 it could be cut to £400 relatively easily (still too high I fully realise but it’s better). It’s the already low users who can’t cut.

I reduced my usage by 30-40% last year just by being more sensible and I really wasn’t a high user before hand. Again, I am desperately worried about low users on very low incomes but there is a sizeable demographic using the washing machine daily (the whole MN using a towel twice is disgusting brigade), tumble drying because they don’t like the feel of the towels that are like dried, with the thermostat set to 21oC 16 hours a day. In the new world we find ourselves in this is not affordable for most.

pinkstinks · 23/08/2022 19:50

There is a campaign for them to nationalise bulb. Is there anyone else with bulb?
it seems wild to fix or move elsewhere but it’s all creeping up.

GoldenAutumnLeaves · 23/08/2022 19:53

ClaryFairchild · 23/08/2022 16:12

Shock

Freaking hell that's high..... what the hell are they putting you through there in the UK??!!

Exactly…it’s just the uk, we are being screwed, for no reason.

Mumtofourandnomore · 23/08/2022 19:54

I thought I’d repeat on this topic, that the issue with prices is global, it’s a wholesale price issue.

It’s not Octopus (or other energy suppliers) trying to rip you off. Energy suppliers make less than £10 per customer. In fact, wholesale prices are so high that under the price cap, suppliers are selling energy at a loss.

Because the suppliers left manage their businesses properly, they ‘hedge’ these wholesale prices, essentially fixing them in advance. As gas prices rise, they lose money buying gas (because it’s more expensive), but make money on the offsetting ‘hedge’ (it’s something you can buy from a bank, for example). The result is a small (less than £10) profit per customer - assuming the supplier has hedged costs perfectly.

It is in everybody’s interests to have well-hedged, properly run energy suppliers. Some suppliers are generators too - but their profit will depend on their hedging strategy. Banks are also making profits too on the hedging profits (on the generation side).

If energy suppliers did not hedge properly, everybody would have to pay the wholesale price rather than the ‘hedged’ price, and the cost would be far, far higher than the variable tariff. Energy suppliers are necessary villains I’m afraid, but many of them are helping consumers through various schemes. All little suppliers that went bust did so a long time ago because they didn’t understand the importance of hedging future customer volumes.

The only answers are to lower consumption or try to get a time of use tariff and pay lower prices overnight.

tonicwaters · 23/08/2022 19:56

I wonder if this is all a big con.

I know of no other EU country that is as terrified of the size of the bills some of you are showing.

Somebody is having a laugh. It would be cheaper to decamp to the Canaries for the Winter (if it wasn't for the other con of standing charges) than to stay and pay.

woodhill · 23/08/2022 19:57

Yes the standing charges are ridiculous now

xxcatcatcatxx · 23/08/2022 19:58

That’s MAD!!! Not sure if this was mentioned or x posted but apparently often are announcing the price cap on Fri (26th) so I guess you’d be able to work out a rough ballpark damage for not being on a fixed tariff based on last years usage as an estimate 🤷🏻‍♀️ I’m assuming that’s how it works.

Although that’s only until 31 Dec and the cold months are usually Jan and Feb so guess we’ll have to wait a little longer for that one xxx

Livelovebehappy · 23/08/2022 19:58

Does anyone on here have any alternative ideas instead of tumbler dryers in the winter months? I literally can’t think of how I’m going to be able to dry clothes without the dryer. Someone mentioned heated clothes horses, but they don’t seem to be that much cheaper than using a dryer. Everything else I can make cuts, but it’s just the drying clothes issue.

xxcatcatcatxx · 23/08/2022 19:58

*Ofgem

PuzzledObserver · 23/08/2022 19:58

woodhill · 23/08/2022 19:10

How are people meant to run electric cars (not that I have one)

By charging them at home on an EV tariff. I refixed recently on Octopus Go Faster - 4 hours each night @7.5p per kWh and 40.9p the rest of the time, fixed for 12 months. 40.9p looks expensive right now, but it won’t when the new price cap is announced at the end of the week.

That translates to less than 2p per mile to fuel my car. Versus 17p per mile in a petrol car doing 45mpg at current petrol prices.

Mumtofourandnomore · 23/08/2022 19:59

pinkstinks · 23/08/2022 19:50

There is a campaign for them to nationalise bulb. Is there anyone else with bulb?
it seems wild to fix or move elsewhere but it’s all creeping up.

Bulb is in a ‘special administrative regime’ so technically it is being funded/run by the government.

Bulb went under because it was not hedged very well (see above). And when the government continued to run it, they did not hedge it at all - they decided to buy energy as they needed it rather than ‘fixing’ it (for some ridiculous reason). So you can be assured that the cost of ‘nationalising’ Bulb had been an awful lot more than if they’d allowed a better-run supplier to take it on, when it first went under…… The cost of running it badly will be passed on to end consumers - but hasn’t been yet.

I’d respectfully suggest that energy companies are left in the hands of experts !

ClaudineClare · 23/08/2022 20:02

DreamingofGinoclock · 23/08/2022 18:04

See below

Thanks @DreamingofGinoclock That's not too bad a deal, although who would have thought those prices would be seen as reasonable this time last year?

Doris86 · 23/08/2022 20:02

Some crazy price fixed deals on here, and I think you’d be crazy to lock yourself into them right now. The government are considering various possibilities at the moment, including Scottish Power’s proposal to fix the price cap where it is for 2 years. . So I think it’s a case of stay on the standard rate, don’t commit yourself to paying higher prices, and watch this space.

tonicwaters · 23/08/2022 20:03

Livelovebehappy · 23/08/2022 19:58

Does anyone on here have any alternative ideas instead of tumbler dryers in the winter months? I literally can’t think of how I’m going to be able to dry clothes without the dryer. Someone mentioned heated clothes horses, but they don’t seem to be that much cheaper than using a dryer. Everything else I can make cuts, but it’s just the drying clothes issue.

This current thread might help you, hope so....

www.mumsnet.com/talk/am_i_being_unreasonable/4617595-to-think-i-will-be-surrounded-by-wet-laundry-forever?page=2&reply=119453997

PeloAddict · 23/08/2022 20:04

Doris86 · 23/08/2022 20:02

Some crazy price fixed deals on here, and I think you’d be crazy to lock yourself into them right now. The government are considering various possibilities at the moment, including Scottish Power’s proposal to fix the price cap where it is for 2 years. . So I think it’s a case of stay on the standard rate, don’t commit yourself to paying higher prices, and watch this space.

I've taken the fixed rate as it's lower than the prediction for October and Jan - but there's also no exit fee so if something changes I can drop back to the variable
Think that's the best of both worlds really

1dayatatime · 23/08/2022 20:10

Sounds very similar to my fixed price renewal offer

Frazzled2207 · 23/08/2022 20:11

EmmaGrundyForPM · 23/08/2022 18:58

We've been with Octopus for years, so all our domestic usage is from renewables. We don't have gas, so all our heating and hot water is electric.

Wind and solar power are NOT. going up in price, so I'm furious that our fuel bill will be going up. We can't get gas where we live, so the argument about electricity prices being tied to gas prices is bonkers.

We have paid a slightly higher rate for electricity over the years because we wanted to support green/renewable energy. And now it feels like we're being slapped in the face for our loyalty.

Similar situation here. Blame the government, not octopus though.

1dayatatime · 23/08/2022 20:11

My fixed price offer

Just had an offer from Octopus
1dayatatime · 23/08/2022 20:18

@woodhill

woodhill
Also a lot of people may use wood burners so surely that will make pollution worse

++++

Exactly this. We will see more people living in colder damper housing, combined with a resurgence of Covid and flu (it's that time of year) plus higher particulate pollution from coal and wood fires.

It's a respiratory illness time bomb about to go off this winter.

EverydayIsPJday · 23/08/2022 20:19

I have just checked mine (eon next) and I have a deal for 12months £269/mth. I have used the moneyadvice calculator and apparently that's 59% increase so alot below the 115% that Martin uses as a marker so it's saying 'strongly consider' (currently paying £140p/m) I am just so confused that a) eon will trump it at some point anyway and increase through a clause b) I will end up paying more longer term of the government step in c) I actually can barely justify the £269. I was paying £68 for both this time last year....

Any advice please? Also obv worried I will blink and the fixed rate will go...

PeloAddict · 23/08/2022 20:22

EverydayIsPJday · 23/08/2022 20:19

I have just checked mine (eon next) and I have a deal for 12months £269/mth. I have used the moneyadvice calculator and apparently that's 59% increase so alot below the 115% that Martin uses as a marker so it's saying 'strongly consider' (currently paying £140p/m) I am just so confused that a) eon will trump it at some point anyway and increase through a clause b) I will end up paying more longer term of the government step in c) I actually can barely justify the £269. I was paying £68 for both this time last year....

Any advice please? Also obv worried I will blink and the fixed rate will go...

Is there an exit fee? If not I would take it now
Next month we will know the increase and it's predicted to go up again in January
Worst case you can drop back to variable if there's no exit fee

Charliecatpaws · 23/08/2022 20:23

ClaudineClare · 23/08/2022 17:33

@Charliecatpaws did you move suppliers yourself or did your supplier go bust? My supplier went bust and when I was moved to BG the original tariff details said it was guaranteed until 2023. BG changed that to n/a after a couple of months. Robbing bastards.

I moved last year from ScottishPower as they were diabolical

EverydayIsPJday · 23/08/2022 20:24

@pelo, there's no exit fee. Thanks

2021mumma · 23/08/2022 20:24

I was moved to octopus when other company went bust. My bills were astronomical I couldn’t believe them. I sat down and worked out they had applied the wrong readings when I moved to them and then said I used loads of power in the short time I was with them.

Thanks goodness I took photos when company went bust as octopus asked me for proof!!

They are thieves! Anyone else who was moved to them please check this too!

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