Octopus Energy Prices April 2023 – Energy Price Guarantee will now stay in place.

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Are energy prices going down - Octopus Energy


Today in the budget, it was announced that the Energy Price Guarantee will continue until July 2023. This is excellent news as the 20% energy price increase that would have gone ahead in April 2023 is now cancelled.

@sarah_go_green The Energy Price Guarantee will continue until end if June 2023 #martinlewis #energybills #energypriceguarantee ♬ Little Things – Tiqta

There will be a slight increase in energy bills in April.  The standing charge will increase for both electricity and gas. This is where you will find the biggest increase. The unit rate will go down for electricity to 0.69p per kWh. Gas will increase but by a very minimal amount.  Households with lower energy use will notice the change it’s the standing charge that’s had the biggest rise.

Energy Price Guarantee Unit Price and standing charge from April 2023 to July 2023

  • Electricity –  Will go down from 33.97p per kWh to 33.28p per kWh. Whilst the standing charge will increase from 47.52p per day to 518p per day.
  • Gas – Will up from  10.39p per kWh to 10.47p per kWh. Whilst the standing charge will increase from  26.84p per day to 27.47p per day.

These figures show a comparison of the Octopus Flexible tariff before and after the 1st of April 2023 in South Wales. You can view the new rates here.

Martin Lewis on the April Energy Price Guarantee extension.

Martin Lewis from Money Saving Expert campaigned relentlessly for scrapping this increase. Thankfully, the budget extended the EPG today.

Wholesale energy prices are falling. The Energy Price Cap, however, is based on historical wholesale energy prices and is still higher than the Energy Price Guarantee.  If the discount had ended in April there would have been a 20% price increase on most household energy bills.

Martin Lewis gives an excellent overview of where we are in terms of the standard variable rates for energy.

April 2023 Energy Price Guarantee after July 2023.

By July 2023, wholesale energy prices will have fallen to a level lower than the Energy Price Guarantee. As a result, the Energy Price Cap will be amended and government assistance will no longer be needed.

I am hopeful that we will begin to see Octopus Fixed deals arrive in the coming weeks. I don’t anticipate them to be drastically lower than the rates we will pay in July when the Energy Price Cap is reviewed, but it is still worth keeping an eye out for. A fixed deal has always been my preference.

Two years ago just before the energy crisis, I was shouting “FIX” through my blogs, and I will continue to do the same. The biggest advantage of Octopus is that there are no exit fees, and this makes it a no-brainer to go for it! The world at the moment is very unpredictable and changing events could impact wholesale energy prices again. Hopefully, we will be able to witness the return of Octopus Fixed deals in the near future and take advantage of the security that a fixed deal offers in these uncertain times.