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Lock in Savings: Secure a Cheaper Octopus Energy Tariff Before April 2025 Price Cap Rise.

Are you on a standard variable tariff, with Octopus Energy, this is the Octopus Flexible tariff. If so, sadly you will need to brace yourself for another price increase as the price you pay per kWh for gas and electricty will go up on the 1st of April 2025. However, there is hope as there are some easy ways to reduce your home bills by picking the right tariff now. Let’s start by looking at the Octopus Energy 14-month Fixed tariff (March v1) which has no exit fee.

Written by Sarah Chambers

Update: On the 10th of April 2025 October reintroduced its Octopus 12 months fixed 10% below the April Price Cap with no exit fees.

I’m Sarah, and I’m passionate about slashing home energy costs. Since switching from British Gas to Octopus Energy seven years ago, I’ve become a super geek in navigating Octopus Energy tariffs to save money and reduce my carbon footprint. Here’s how you can too:

Fix Your Rates: Lock in lower prices now to avoid future increases.

Switch Smartly: Explore how switching tariffs can lead to significant savings. It is an easy strategy that gives you peace of mind with no fuss. Octopus Energy has no exit fees meaning you can hop to cheaper rates when they become available.

Stay with me to learn how to make your home energy use smarter, cheaper, and greener!

Is Octopus Fixed tariff worth it?

Yes, the Octopus Energy Flexible tariff will go up on the 1st of April 2025 so it is worth fixing. The question is how much more will you pay?

The Octopus Flexible tariff follows the Energy Price Cap which is updated quarterly. It will next change on the 1st of April, 2025, with the new rate which has just been announced by Ofgem on 25th February 2025.

If you secure a fixed rate up to 4% above the current Jan-Mar Price Cap, you’re expected to save money over the year compared to remaining on the Price Cap according to analysts.

What’s Changing?

📈 Electricity & Gas Price Cap Changes (Direct Debit) – April 2025

How much more you will pay on the Octopus Flexible tariff depends on where you live in the UK. This is the average price change based on typical use.

Energy Type	Standing Charge (Per Day)	Unit Rate (Per kWh)
Electricity	53.8p (down from 60.97p) ⬇️ 11%	27.03p (up from 24.86p) ⬆️ 8.7%
Gas	32.67p (up from 31.65p) ⬆️ 3.2%	6.99p (up from 6.34p) ⬆️ 10%

Low energy users (under £100/mth): You may see only a small increase, thanks to the lower standing charge.
High energy users (£200+/mth): Expect a 7-10% increase in your bills due to rising unit rates.

Fix Your Energy Rate Before the April 2025 Price Hike – No Exit Fees & £50 Credit

✅ 1. Protection from Future Price Rises

The Octopus Energy 14-month fixed tariff allows you to lock in a lower rate before the April increase. This means you’ll avoid any further hikes for the next 16 months, giving you price certainty and protection against unpredictable energy costs.

💰 2. Cheaper Than the Price Cap – My Own Experience

As a South Wales resident, I’ve looked closely at how the April price cap changes will affect me. Here’s the comparison:

Energy Type	Standing Charge (Per Day)	Unit Rate (Per kWh)
Electricity (South Wales)	51.79p (down from 64.10p) ⬇️ 19%	27.61p (up from 24.85p) ⬆️ 11%
Gas (South Wales)	32.81p (up from 31.82p) ⬆️ 3.1%	7.12p (up from 6.54p) ⬆️ 8.9%

For me, the unit rate increase is significant, and switching to a fixed Octopus Energy tariff now if I were on the Octopus Flexible tariff (or the standard variable rate with another supplier) would make financial sense before the higher rates take effect.

The headlines report a 6.4% increase on the 1st April Energy Price Cap, but just look at the increases in the unit rate in South Wales. Yes, my electricty standing charge would go down but that’s quite a jump on the unit rates. I have 3 children and I am in no way a low user. Luckily I have other green tech that helps me to reduce my reliance on the national grid such as solar panels but I am in the minority of homes in my area who have this “luxury”.

If you want to look at the April Energy Price Cap rates for your region, scroll down this page on the Ofgem website.

Martin Lewis warns that 80% of homes are already paying on the Price Cap v a cheaper fixed tariff.

Martin Lewis has warned consumers against overpaying for energy. He pointed out that 80% of households are on the Energy Price Cap, which he called the “pants cap,” suggesting that many are already paying more than they need to. You can see this broadcast on ITVX.

If you aren’t a person who likes a bet my advice would be to take the Octopus 14-month fixed tariff now. It is a sure win with no exit fees. You feel you have to look for the catch but there isn’t one. You can lock in a cheaper rate now and if predictions are wrong for the rest of 2025 you can switch to another tariff and it won’t cost you a penny.

Is it time to switch to an Octopus Energy Fixed tariff?

If you’re hesitant about choosing an energy tariff due to fear of being locked into higher prices, Octopus Energy offers a solution that balances cost savings with flexibility. Here’s why you should consider switching to the Octopus Fixed Tariff:

No Exit Fees: One of the major concerns with fixed tariffs is the fear of being stuck with rates that might not be the best in the future. Octopus Energy eliminates this worry by imposing no exit fees on its current fixed tariffs. This means you can switch to a different tariff if a better deal comes along you can simply contact customer service or use your online dashboard to switch tariffs.
Cost Efficiency: Since July 2024, the Octopus Fixed Tariff has consistently been cheaper than the Energy Price Cap. Each time a new price cap is announced, the fixed tariff rates have been below these caps. A fixed-rate safeguards against rising energy costs. Opting for the fixed tariff could lead to savings over time and prices are predicted to rise in 2025.
Flexibility: If the market unexpectedly drops, and the Octopus Flexible tariff becomes cheaper, you can switch back without any financial penalty. This flexibility makes it a low-risk option for anyone looking to save on energy bills.
Real User Experience: I have over 5,000 followers on TikTok gained by sharing my experiences of switching tariffs. You can hop between Octopus fixed tariffs when better deals are available. Having control over your energy expenses without the usual commitment of tariffs that lock you in is a win.

Energy Price Cap vs Octopus Fixed tariff.

If you stay on the Energy Price Cap predictions are that you will be paying more than you need to throughout 2025 compared to fixing with Octopus now.

Here is a quote for the current Octopus 16-month fixed tariff. Based on typical use you would save around £1 a month. It might not sound like much this will increase when the flexible rate goes up in April 2025 and possibly again later in the year. All these extras add up and it is money you don’t need to give away.

You would pay about £1 more than the flexible rate will go up in April and it’s not set to fall to current rates throughout 2025.

Why would you give that away when you can take the lower price with no contracted exit fee? Taking an Octopus fixed tariff isn’t just safe and easy, it’s financially smart. Remember you can get a £50 credit as a new Octopus Energy customer too using my referral link.

In conclusion, don’t let the fear of commitment to a tariff prevent you from saving money. With Octopus Energy’s no-exit fee policy, you have both the savings and the freedom to adapt to market changes. Make the switch, and enjoy peace of mind with your energy bills.

Tip: Existing customers can choose the Loyal Octopus 14M Fixed March v1 tariff, which offers 0.15p/kWh cheaper electricity and 0.03p/kWh cheaper gas than the standard Loyal Octopus fixed tariff. Standing charges remain unchanged, and prices are nearly identical for new and existing customers.

Regions with the Highest Electricity Price Increases (Direct Debit)

These areas will see the biggest rise in unit rates, meaning higher bills for users who consume more electricity:

North Wales & Mersey – Unit rate increasing by 10.6% (from 25.76p to 28.50p per kWh)
South West – Unit rate increasing by 12.4% (from 24.53p to 27.58p per kWh)
South Wales – Unit rate increasing by 11.1% (from 24.85p to 27.61p per kWh)
Yorkshire – Unit rate increasing by 9.8% (from 23.86p to 26.19p per kWh)

These regions will see some of the highest percentage jumps in electricity unit rates, making fixing a tariff an attractive option.

📉 Regions with the Lowest Electricity Price Increases (Direct Debit)

These areas will see the smallest increases in unit rates:

Southern Scotland – Only a 6.2% increase (from 24.31p to 25.82p per kWh)
London – A small 1.6% increase (from 26.06p to 26.48p per kWh)
Northern Scotland – A moderate 6.8% increase (from 25.28p to 26.99p per kWh)

London sees one of the lowest increases in unit rates, but its standing charge is rising, which may offset some of the benefits.

Regions with the Highest Gas Price Increases (Direct Debit)

These areas will see the largest jumps in gas prices, making the shift to electric heating (like a heat pump) more attractive:

South West – Unit rate increasing by 9.1% (from 6.62p to 7.22p per kWh)
South Wales – Unit rate increasing by 8.8% (from 6.54p to 7.12p per kWh)
London – Unit rate increasing by 10.3% (from 6.41p to 7.07p per kWh)

Regions with the Lowest Gas Price Increases (Direct Debit)

Northern Scotland – Only a 6.6% increase (from 6.25p to 6.92p per kWh)
Southern Scotland – A 6.7% increase (from 6.25p to 6.92p per kWh)
Northern England – A 6.5% increase (from 6.32p to 6.94p per kWh)

These areas will still see an increase, but it’s slightly lower than in London and South Wales, where gas prices are rising faster.

💡 What This Means for You

Living in South Wales as I do a fixed is a must instead of sticking to the Octopus Flexible rate for gas. Luckily I fixed my gas rate back in October 2024 but if you haven’t make sure you look at this asap!

If you live in South Wales, South West, or North Wales, you’re seeing some of the biggest increases in both electricity and gas!
If you live in London or Scotland, you’re seeing a lower increase, but standing charges may offset this.

Why Switch to Octopus Energy?

I’ve been an Octopus Energy customer for 7 years and can confidently say switching to them was a great decision. They bring a refreshing approach, focusing on exceptional customer service and pushing the boundaries with innovation in the energy sector.

I’m not alone in this choice. According to recent data, a significant number of customers are also making the switch to Octopus Energy. Here’s a graph illustrating this trend:

[Graph Showing Customer Switch to Octopus Energy]

This visual speaks volumes about the trust and preference customers have for Octopus Energy over other providers.

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