Why have UK wholesale energy prices gone up? How does it effect Octopus Agile customers?

Octopus energy price rise

Octopus Energy Agile price rise 2021

Since February 2021 wholesale energy prices in the UK have risen by over 50%. If you are on a fixed tariff and have been for a while the rise in energy costs may not have hit your pocket yet. It has, however, been the topic of lots of discussions for those on smart tariffs, such as Octopus Agile.

The Octopus Energy Agile tariff is based on wholesale energy prices. The price customers pay per kWh changes not only by the day but by the half-hour.  In 2020 it proved to be a really great way for customers to save money and help make the National Grid greener but shifting their energy use but in 2021 prices have changed quite dramatically.

Octopus Energy Agile prices 2021. 

In 2020 Octopus Agile customers regularly took to social media to highlight their amazing money-spinning ways of saving cash while charging electric cars, heating hot water or even just doing laundry BUT the chatter has changed over the last few months. The prices have lept up rather than crept up and price plunges have been few and far between. There are still lots of ways to get creative with your energy use to save money but it is getting trickers with fewer and fewer price drops throughout the day.

Octopus Energy is always more than transparent with its tariffs and calls for feedback from CEO Greg Jackson have resulted in quite a few interesting Twitter posts of late. Octopus Energy cannot control the market. They have to pass on the rise in costs and I know it must pains Greg Jackson to have to increase the Octopus Agile half-hourly prices so they end up looking less attractive BUT that’s how the energy market works! However groundbreaking the Octopus Agile tariff is it is based on wholesale and that’s just the way it works.

Why are Octopus Agile prices increasing so much?

Yesterday, Octopus Energy released this great blog on the “State of the wholesale market’. It highlights how in part Covid, the disruption of gas supplies, and the price of the European carbon allowance benchmark which has risen by 69% all impact wholesale prices. 

It’s a very interesting read and it does highlight why some Octopus Agile customers, for now, are jumping ship in favour of Octopus Go.  If you are concerned about the price of energy but you still want to shift your energy use to save both money and the planet it is a very good choice. You can leave the energy market to continue to try and work out pricing and demand while still taking advantage of low off-peak prices. (I just wish the politicians would act to work things. We need to try and reach Net Zero and this really doesn’t help!!)

Octopus Agile is still attractive to customers especially those who can shift their energy use and for those with solar panels who are able to export energy on the Octopus Outgoing Agile tariff.

Octopus Agile Tariff.Cheapest 4 hours.Average price kWhCheapest price 30 minutes.
National Average Price of Energy. Energy PriceEnergy Price.Energy Price.
Average price per kWh over 7 days.26.05p per kWh
Saturday 21/05/2218.1p per kWh.25.7p per kWh.16.8p per kWh.(02.30)
Friday 20/05/2219.8p per kWh.27.1p per kWh.18.2p per kWh.(05.00)
Thursday 19/05/2217.0p per kWh.25.4p per kWh.15.7p per kWh.(03.30)
Wednesday 19/05/2223.0p per kWh.27.6p per kWh.17.9p per kWh.(22.30)
Tuesday 17/05/2221.7p per kWh.27.9p per kWh.20.2p per kWh.(22.30)
Monday 16/05/2218.3p per kWh.25.3p per kWh.17.0p per kWh (04.30)
Sunday 15/05/2216.3p per kWh.24.0p per kWh.13.3p per kWh (22.30)

On a positive note 🤗

Octopus Energy shows no sign and stepping away from any of its smart tariffs. In fact, they show signs of being even more committed. This month they have joined forces with National Grid Electricity System Operator (ESO),  Scottish and Southern Electricity Networks (SSEN),  and Ohme for the UK’s largest-ever home energy flexibility study.  CrowFlex” will see 25,000 homes take part in the study. It will focus on how incentivising customers through pricing can help to change user behaviours. 👏💚

Octopus Agile is in no way dead in the water. In fact, it trailblazing time of use tariffs. It’s what needs to be done to effect change and help the national grid become cleaner and greener. Octopus has been ahead of the game and now it needs to help other people catch up by reinforcing its benefits with more data. Hopefully, the study will help to do this!

Posted by Sarah at www.octopusreferral.link

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