Octopus takes stand against standing charges with £40m package
- Dual fuel customers on Octopus's standard variable tariff to receive a 4% reduction in standing charges compared to Ofgem's price cap
- Up to 100,000 households in greatest need to be eligible for "standing charge holidays" of up to 6 months
- Octopus standing charge help comes on top of huge government support for unit rates
London, 17th September 2022 - In addition to the huge support from government to reduce unit rates, Octopus is beginning the battle against standing charges.
All customers on Octopus's standard variable tariff - "Flexible Octopus" - will automatically receive a 4% reduction in standing charges compared to Ofgem's price cap.
In addition, up to 100,000 customers in greatest need will be able to apply for "standing charge holidays" of up to 6 months.
Standing charge holidays for the customers who need it most will enable them to benefit more from energy savings. They'll no longer be penalised just for having a meter.
In total, Octopus is diverting around £40 million from operational efficiency and slashing advertising and sponsorship.
Greg Jackson, CEO and Founder of Octopus Energy says:
“High standing charges are egregious. This £40m package is the beginning of our battle to bring them down. Far too many costs have been loaded onto standing charges - from grid and distribution charges to failed suppliers. These charges just make it more difficult for hard-pressed customers to save money through efficiency and Octopus is making a stand to change that.”
Full details of Octopus Energy’s tariffs can be found at: https://octopus.energy.
Notes to editors:
*Average standing charges set by Ofgem for the default tariff cap are at 46.36p per day for electricity and 28.49p per day for gas for a typical dual fuel customer paying by direct debit, from 1 October (source: Energy Bill Support Factsheet 8 September 2022).
Octopus Energy’s customers will be paying 44.71p per day for electricity and 26.84p per day for gas from 1 October, saving dual fuel customers around £12 per year. This standing charge support package for all customers will cost Octopus Energy around £30 million a year.
The company’s “standing charge holiday” package will see up to 100,000 customers in need have their standing charges for electricity and gas reduced to zero for 1, 3 or 6 months depending on personal circumstances, bringing Octopus’ total standing charge support package to £40 million.
Octopus’ universal standing charge support will automatically be applied to customers’ standard variable tariffs. Details on how to apply for “standing charge holidays” will be published shortly.
Octopus Energy Group
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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 14 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 3.4 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 £4bn 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 Pensions 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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