Our new Flexible tariff: £50 below the price cap for loyal customers, and £5 million more support for households

HELPFUL FAQS ABOUT RISING PRICES

What is the price increase?

This price increase will affect any customer on our Flexible Octopus (variable) tariff, effective from April 2.

If you are on one of our Flexible Octopus tariffs, your unit rates (the amount you pay for each kWh of gas or electricity you use), are not fixed, and can fluctuate based on factors like longterm changes in our costs to buy energy.

How do I know if I’m affected by this price increase?

You can check what tariff you are on in your online account, but we will also email every affected customer with a personal projection of what this increase means for your energy costs.

Does this mean you’re one of the more expensive suppliers now?

Absolutely not; quite the opposite. Our Flexible tariff has always been priced below the government's Energy Price Cap, and while most other large suppliers have increased prices as high as they're legally allowed to, with our Loyal Octopus support, Flexible Octopus is set £50 below the new cap level.

How do you compare to other suppliers?

The other big suppliers (British Gas, EDF, E.on, OVO, Scottish Power, and Bulb) have all announced April price rises already, taking their prices up to within pennies of the Energy Price Cap: the legal maximum they can charge their customers.

Our standard prices are slightly lower for new customers, and existing customers will save a further £50 a year compared to Price Cap prices.

How does the Loyal Octopus support work?

The support automatically reduces electricity charges by £48 per year compared to our standard tariff. By reducing your standing charge, all Flexible Octopus customers receive the same support. We’re the only large energy company to do anything like this. It’ll cost us another £50m over the next 6 months.

Only my gas is on Flexible Octopus. Can I receive the reward?

Our gas prices are still cheaper than any other large supplier. If your electricity is on a fixed or smart tariff, we’ve already priced your electricity as low as we possibly could (as though it includes the Loyal Octopus support). However, should your current tariff expire and your electricity roll onto Flexible Octopus, you’ll see the support in your new prices, as long as you've been an Octopus customer for at least 8 months.

If your electricity is currently supplied by another supplier, you can switch to Flexible Octopus and automatically qualify for our Loyal Octopus support as soon as you've been an Octopus customer for at least 8 months.

I’m already struggling due to Covid, why have you increased my prices further?

We know a lot of people are having a tough time right now. For a long time, we've sheltered customers from rises by cutting significantly into the small margin we usually put on our tariffs (~5%, to cover our business costs). This has cost us around £100m over winter.

We've already helped over 30,000 households with our Octopus Assist fund, which today we're doubling to £5m to help more customers at this difficult time.

If you or someone you know is struggling with bills, please do let us know.

How do I move to a fixed price tariff?

You can fix your prices at any time in a few clicks. If you're on Flexible Octopus and you've not received one already, you'll get an email very soon with all the details of this price change clearly set out. There'll be a personalised link in the email where you can fix your prices at any time.

Are you using the energy crisis to charge customers more and earn money for shareholders?

We've never made a profit, and with the measures announced today, we won't be making one this year either. But we have received major investments and are more efficient than other companies. We are using this to do everything we can to help our existing customers through the crisis.

Will I start having to pay more immediately?

We'll continue to honour your current unit prices until April 2. Over the coming weeks, we'll review all accounts and if you need to adjust your payments, we'll get in touch with a recommendation. You're always in control of your payments, and if you’d prefer to adjust your monthly payment now, you can do so at any time in your online account.

I’ve only just switched to you, why have you already increased your prices?

If you've not been with us long, we can appreciate this comes a bit out of the blue. But even after this increase Flexible Octopus is still very competitively priced: cheaper than our fixed tariffs, and £51 cheaper than the price cap for a typical home.

If you prefer, you can also fix your prices at any time, which will lock them in for 12 months. If you would like to fix your prices now, follow the link in our email setting out the details of this price change.

Why do renewable energy prices increase when gas prices rise?

The UK energy market works like this because the grid always has to balance: the UK's energy needs (or 'demand') need to match with an equal amount of power 'supply'.

National Grid's constant job is to call on many different types of power: increasingly green wind, solar and hydro; but also including gas, nuclear or even coal, to keep things in balance. Because all energy generators are filling the same important function in this way, the highest price ends up setting the wholesale market price. So when gas prices are high, electricity prices from all sources are too.

This is outdated and we are pushing for change but, for now, it’s just the way things work.

What’s happening with the Government’s £200 energy bill rebate?

We expect this to be a one-off credit to your account in October, but are discussing details with the government. We’ll let you know once it’s finalised.

I’m on one of your Fixed tariffs, am I affected?

No. On a fixed tariff you are protected against future wholesale price rises. Because we buy your energy up-front, your costs per unit don’t change during the fixed period.

I want to take my business elsewhere, will you penalise me for leaving?

Not at all – you're on a Flexible tariff with no exit fees.

And we understand. No-one wants to pay more for their energy than they need to, and that’s a principle we use to set our prices at a fair level. However, changing wholesale prices are affecting all suppliers in the industry, not just ourselves.

All the other big suppliers have already announced larger rises from April. As a result, we think it's important to have all the correct and relevant information when looking at other suppliers.

As the wholesale cost determines energy prices across the whole industry, we'd recommend comparing the unit rates and standing charges of any deals you look at carefully.

Of course if you still wish to switch away, we completely understand, and wish you the best of luck in the future.