IO now variable instead of fixed!

[Tommo05]

Just had this email through this morning, as my IO fixed tariff is coming to an end on 30th March. Basically my IO rates are changing from:
Peak unit rate: 29.82p / kWh
Off-peak unit rate: 7.50p / kWh
Standing charge: 26.82p / day

New rate as of 30/3/23:
Peak unit rate: 40.23p / kWh
Off-peak unit rate: 10.00p / kWh
Standing charge: 47.99p / day

So quite an increase, but the big thing is below. From what I understand the IO rate will become variable, so the rates given can increase as well as decrease depending on the wholesale prices!

Important: Intelligent Octopus and the Energy Price Guarantee

The government's Energy Price Guarantee discount does not apply to new fixed term tariffs agreed after October 1, for new customers or existing customers renewing.

And while the Energy Price Guarantee is a hugely welcome programme, it's primarily aimed at helping customers on standard tariffs who could otherwise face unpayable bills.

We've worked hard within the rules of the scheme to develop new versions of Go and Intelligent Octopus that offer the best possible value to EV drivers and still make the most of cheap, green, abundant electrons. In short:

• No more annual renewals: fixed-term contracts aren't eligible for the Energy Price Guarantee, so our smart tariffs will now technically be "variable" products, without an end date. Whilst we don't currently have any plans to change prices (either up or down), prices will eventually change — but we'll always give plenty of notice. If government rules change, or we get to the end of the Energy Price Guarantee, we may reintroduce fixed terms, if it means we can make EV charging cheaper.
• Discounted public charging with Electric Universe: To help reduce the cost of driving your EV, we're now giving 8% off all public charging on Electric Universe for Intelligent Octopus customers. If you're already an Electric Universe customer, you don't need to do anything — this discount will apply automatically.

 

[Lord Farquad]

Yeah, they’ve moved away from fixed prices across the board. Go, IO etc have been variable for a while now.

 

[Tommo05]

Yeah, they’ve moved away from fixed prices across the board. Go, IO etc have been variable for a while now.

I wasn’t aware of that? And no mention of it on the IO wiki thread on here, from what I can see?
Still think we’ll be better sticking with IO as we have 2 EV’s. But just switched our gas to the octopus tracker tariff which is great, so may even look at that for electricity too?

 

[ringi]

From what I understand the IO rate will become variable, so the rates given can increase as well as decrease depending on the wholesale prices!

The IO rates will not change daily or even weekly based on wholesale price changes, but they can change them by giving you notice. Hence nothing like Octopus Agile or Octopus Tracker.

 

[Lord Farquad]

I wasn’t aware of that? And no mention of it on the IO wiki thread on here, from what I can see?
Still think we’ll be better sticking with IO as we have 2 EV’s. But just switched our gas to the octopus tracker tariff which is great, so may even look at that for electricity too?

We have 2 EVs and have load shifted about 70% to overnight on Go. But with IO being 6hrs and cheaper than Go, we’ll be moving to that next week when our Go rate ends.

Looked at Elec tracker but I think IO will be cheaper for us.

Moved to Gas tracker last week.

 

[GRiLLA]

How does the wholesale price of electricity mean the standing charge needs to double?

 

[ringi]

How does the wholesale price of electricity mean the standing charge needs to double?

The government have put most of the cost of keeping people on fixed price tariffs when their energy company fail onto everyone's standing charges over many years to time. Likewise with the minimal payments that are made to renewables energy companies at times when there is too much generation capacity.

 

[GRiLLA]

The government have put most of the cost of keeping people on fixed price tariffs when their energy company fail onto everyone's standing charges over many years to time. Likewise with the minimal payments that are made to renewables energy companies at times when there is too much generation capacity.

Seems to be taxation in a very regressive manor as its not related to people's ability to pay.

 

[Mrklaw]

they have no choice - they have to be variable to qualify for the EPG. Technically they are flexible but as they’re covered by the EPG they’re as flexible as every other tariff out there - i.e fixed due exactly to that EPG

And you can move whenever you want. Maybe things will get worse in March before they get better, but maybe we’ll start to see some rates drop below the cap this year?