Octopus Energy Fixed and Flexible tariff price increases.
I usually wake up each morning and check the Octopus Energy tariffs page to see if prices have increased. I am a massive Octopus Energy fan and blog about their tariffs and mission to help us achieve NetZero. Today, I was staggered to see that overnight the cost of an Octopus 12 Months Fixed tariff has increased dramatically overnight.
- 5th March 2022 – 13.91p per kWh for a unit of gas and 46.32p per kWh for a unit of electricity. (Current fixed rate)
- 25th February 2022 – 10.22p per kWh for a unit of gas and 37.67p per kWh for a unit of electricity
It wasn’t a complete surprise as wholesale prices started to take a sharp upward increase as soon as Russia invaded Ukraine. Prices have been going up consistently for a few weeks but for the last week, wholesale prices have reached new highs.
Octopus Flexible Tariff price increases announced.
Octopus Energy announced yesterday its new Flexible Octopus prices. The Flexible Octopus tariff is the Octopus default tariff referred to as the standard variable rate. This tariff is subject to the price cap and is based on average wholesale energy prices over the previous 6 month period between August and January 2022.
The new April 2022 energy price cap will see prices rise by 54%.
|Energy Price Cap - October 2022.|
|Electricity ⚡️||Gas 🔥|
|51.89p per kWh||14.76p per kWh.|
|Daily standing charge 46.36p.||Daily standing charge 28.49p.|
|Prices vary based on geographical location.|
Here are Octopus Energy’s new Flexible tariff rates which will come into effect on the 2nd of April 2022.
Until yesterday a new Octopus fixed tariff was worth considering if you could afford to pay higher than the price cap over the summer period. By taking a higher rate and using less energy over the summer months you could have planned ahead for the winter to try and beat any further price cap rises in the autumn.
The new October 2022 energy price cap will be based on wholesale energy prices between February and August 2022. So far wholesale energy prices have been incredibly high and they seem to be going only one way and that’s up!
If wholesale energy prices continue to rise there could be at least another 54% price increase in October! That’s my big worry!! There may be further price rises on the horizon.
Is there still time to fix a new Octopus Energy tariff?
It is questionable if fixing a new deal today is the right thing to do. The Octopus fixed rate is much higher than the energy price cap but the price cap will go up in October, by how much is yet unknown! Just remember you can switch tariffs at any time and there are no fees so if prices drop you can take a new deal.
|Octopus Fixed Price per kWh.||April 2022 price cap.|
|Electricity||70.76p per kWh||28.29p per kWh|
|Gas||19.77p per kWh||7.43p per kWh|
|12 Months fixed tariff.||Yes||No|
|Prices vary slightly depending on geographical location.|
If you have a smart meter and an electric vehicle I would without questions look at moving now to Octopus Go or the Intelligent Octopus tariff! I have no idea how long these deals will last but they are a really good opportunity to grab a fixed rate!
Will energy prices continue to rise?
No one knows but I think they will. During the summer months, it’s easier to cope but in the winter when you need your heating and lights on it’s going to be a big challenge!! I hope there is a resolution to the energy crisis very soon!!
Update 7th March 2022.
The March Version 1 of the Octopus Fixed Tariff and Loyal Octopus tariffs seem to have been withdrawn and you can still grab a fixed at the February rates!!