Just received this from Octupus Energy.
You might have heard the energy price cap is increasing from October 1. We’re expecting our Flexible Octopus rates will go up too — we’re finalising them at the moment and we’ll be in touch over the next few weeks.
There’s been a lot of discussion from Martin Lewis and others about when to fix energy prices, so let me share what I can.
If you’d prefer to jump in and compare your monthly costs or switch to fixed prices, you can do so right here in your online account or directly from the Octopus app on your phone. You can download the Octopus app for Apple or Android here.
What we know:
A typical home on Flexible Octopus is currently paying £1,553 a year.
The Ofgem energy price cap is rising 10% from £1,568 to £1,717 from October 1.
Our Flexible prices will need to rise a similar amount. We’re finalising them at the moment, but it’s safe to assume Flexible Octopus prices will be slightly below the price cap level, thanks to our discounted standing charges.
Our 12 month fixed tariff is currently £1,656 for a typical home: cheaper than the new cap by £60 and around 6% more than currentFlexible Octopus rates.
What we don’t know:
What energy prices will do over the coming year. Most analysts are predicting the price cap will hover above £1,700 over the next 12 months, but prices are unpredictable.
How long we will be able to offer our current fixed rates for. Wholesale costs are volatile and fixed tariffs are popular right now — we update our tariffs regularly to reflect the latest costs.
If any changes to the energy price cap will move costs from the standing charge to unit rates. Ofgem is looking into this (we fully support the change, and there’s more detail below if you’re interested) but it won’t come into effect until April 2025 at the earliest (and if at all).
Ultimately, whether you choose to fix your prices or not has to be up to you. Our current fixed prices will definitely save you money over the colder months of October to January, and there’s a decent chance it will be cheaper than Flexible Octopus for the full 12 months (but that’s not guaranteed).
What is guaranteed is we won’t charge exit feeson this tariff, so should prices drop, you will be able to switch back to Flexible Octopus at any time.
If you’d like to compare your monthly costs or make the switch to fixed prices, you can do so with a few taps in your online account.
And if not, sit tight and we’ll be in touch soon with all the details of October prices.
Kind regards,
Greg Jackson
Founder
PS. What is happening with standing charges?
Along with the announcement of the new price cap rates for October, Ofgem made some positive noises about changing the way standing charges are calculated.
They are currently consulting on moving £20-£100 of operating costs from the standing charge to unit rates. We strongly support this because it gives customers more control over their energy bills — assuming sufficient support for vulnerable customers with unavoidably high energy use — and they have set a target of April 2025 to make any changes.
Additionally, some years ago Ofgem shifted a lot of grid costs onto standing charges. However since then, these costs have increased well beyond expectations. Ofgem has (thankfully) announced it will review this decision, but we don’t yet have any target for when this review will be completed
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.