Octopus Energy to increase prices. Announces £50 million of customer support.
- Existing customers to pay £50 below new price cap through special rebate
- Hardship fund doubled to £5m to help customers most in need
- Octopus is the only Which? Recommended Provider and continues to offer outstanding customer support
Octopus Energy, the fourth largest UK energy supplier, today announces a price increase for customers on its standard variable tariffs. The price change comes into effect from 2nd April 2022.
Existing customers on the standard variable tariff (“Flexible Octopus”) will see costs rise to £1921 for a typical user (c. £50 below the price cap and any other large supplier). The standard variable tariff for new customers will be £1969, £2 below the price cap.
Octopus Energy has already helped over 30,000 customers who are struggling with their bills this winter through its financial hardship fund, Octo Assist. To help even more households in need, Octopus is today announcing it is doubling its fund from £2.5m to £5m.
Uniquely among all large suppliers, Octopus is holding costs significantly below the cap for existing customers.
Together with the rebate for existing flexible tariff customers, Octopus Energy’s support package for customers now amounts to around £50 million for the upcoming price cap period.
Wholesale energy prices have sky-rocketed, mostly due to supply chain issues post-pandemic, long cold winters in Asia and Europe and Russia’s attack on Ukraine. Current wholesale prices are now 500 per cent higher than they were a year ago.
Whilst the UK cannot avoid these global rises, support from government and Octopus can make a significant difference to the least well off households:
Commenting on the rise, Greg Jackson, founder of Octopus Energy Group, says:
“We’re gutted to be increasing prices like this, but with the cost of energy being up to five times higher than last year it’s absolutely unavoidable. We’ve already absorbed £100m of the costs on behalf of customers, and we’re choosing to absorb another £50m here by keeping costs for existing flexible tariff customers well below the cap - and much lower than any other large company.
“We’re also doubling our financial assistance fund for those most in need, and we’ll do all we can to help customers through this. That includes increased investment in staff and systems to maintain the service levels which make us the only provider recommended by Which? and ensures there’s someone to speak to when customers need it.”
The price rise will come into effect from 2nd April 2022 for customers on Octopus Energy’s standard variable tariffs. Co-op Energy, London Power and M&S Energy customers on standard variable tariffs will see similar increases to their annual bills. Customers on the company’s fixed tariffs will remain unaffected by the price changes.
Octopus Energy will be writing to customers over the coming days with their individual figures.
Customers on the company’s standard variable tariffs who want to switch tariffs to fix their monthly prices can do this in a few easy steps in their Octopus Energy account.
Notes to Editors
*‘Typical user refers to Ofgem medium users.
Existing customers defined as: electricity customers who were on supply with Octopus, or in process of switching, prior to March 3rd, 2022 and are currently on our Flexible Tariff or will be rolling onto it from a fixed tariff prior to April 2nd 2022.
Affluence levels defined using Outra, with consumption levels based on relevant customers within Octopus customer base and then scaled to match Ofgem typical consumption at medium level.
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 13 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 3.1 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a £3.4 billion portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 20 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following a $600 million investment from Generation Investment Management and a $300 million investment from Canada Pension Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market.
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