The Energy Price Cap is Increasing
- Octopus Energy customer prices remain unchanged
- Millions of Big 6 customers expected to be hit with a price rise
What is the Price Cap?
A price cap was announced by the government in September, meaning large energy companies, like the Big 6 (British Gas, EDF, E.ON, Npower, SSE, Scottish Power), could no longer milk loyal customers by rolling them onto an extortionately expensive default tariff at the end of their fixed contract. The cap for average annual consumption was set at £1,137
We celebrated hard - it was a massive triumph that we had lobbied hard for, to bring cheaper energy to everyone. For too long, the Big 6 energy suppliers used every trick in the book to overcharge millions of households, with customers throughout the UK overpaying to subsidise the inefficiency of these bloated giants.
Everyone on a poor value deal saved money when the price cap came into effect. Hurrah! 🙌
What’s happening now?
Ofgem, the industry regulator, calculate what the cap should be based on energy supplier network costs, the average overheads of each supplier and renewable power subsidies, amongst other things. They review the level of the cap every 6 months to take into account these market changes.
It was announced on the 7th February that the cap will rise £117 to £1,254 for the average annual consumption starting 1st April.
What does that mean?
It’s expected that the Big Six will raise their poor value default tariffs to squeeze as much money out of their customers as the new price cap level will allow.
If you’re an Octopus Energy customer prices will remain unchanged and significantly lower than the cap.
|Big Six||Octopus Energy|
|SVT* cost during the first price cap||£1,133||£1,006|
|Expected SVT* cost after the price cap rise||£1,254||£1,006|
*Standard Variable Tariff
At Octopus Energy we’ve run multiple campaigns to bring to light the dirty tricks used by the Big 6. We coined the name for a particular dirty trick, the ‘tease and squeeze’ after a meeting with BBC journalist Michael Robinson. We even created a pop-up pub to demonstrate this ‘tease and squeeze’ tactic and show what’s happening with people’s energy tariffs. It turns out people pay attention when you mess with the price of alcohol.
If you’re paying anything near the cap you’re still paying too much. Switch to an honest, green, award winning supplier today and save yourself some money.
Hey I'm Constantine, welcome to Octopus Energy!×Close window