
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 is predicted to 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 16-month Fixed tariff (February 2025 v1) which has no exit fee.
Written by Sarah Chambers
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!
(POST UPDATED 6TH FEBRUARY 2025 WITH NEW 16-MONTH FIXED INFO.)
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 announced by Ofgem in mid-February 2025.
We’re over two-thirds through Ofgem’s assessment period for the April- 2025 Energy Price Cap. The average daily wholesale prices from the 18th of November to the 17th of February 2025 are used to set the April Price Cap.
Analysts predict the Energy Price Cap could rise by 3% to 5% in April 2025. By fixing your energy tariff now, you could save significantly. The Octopus 16-month fixed tariff is slightly currently below the January 2025 Energy Price Cap, and new customers can receive an additional £50 credit, equating to a 2.9% discount.
With all analysts predicting at least a 3% increase on the 1st of April 2025 this means your effective savings could be at least 3% or more. Plus of course, the £50 credit on top if you are a new customer.
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.
Martin Lewis warns that 80% of homes are already paying on the Price Cap v a cheaper fixed tariff.
Should you fix your energy bills? 80% are on the price cap, you can fix now at 7% less than it (find cheapest at https://t.co/4ikTwuGFTQ) what counts is will the price cap rise, watch this…
Watch my full BillBuster show at https://t.co/cfeX6FnsPP pic.twitter.com/wvWl6BwFpB
— Martin Lewis (@MartinSLewis) January 15, 2025
On 14th January 2025, Martin Lewis 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 16-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 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 save just £12 based on this quote but the flexible rate will go up in April by between 3% and 5% and it’s not set to fall to current rates throughout 2025. We will find out the exact amount of the increase before the end of February.
If prices increase as predicted in April 2025 and again in October 2025 those savings will be greater. 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.
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.
You may be interested in Sarah’s blog posts;
- Compare Octopus Energy Tariffs
- Octopus Tracker tariff is it still worth it?
- Octopus Energy Heat Pump offer.
- Octopus Energy Heat Pump review and beginners guide.
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