Are Octopus Energy prices going up in 2024 / 2025?

Are Octopus Energy prices going up? Sadly yes they are. In October 2024 the Energy Price Cap will increase by an average of 10%. It is a worrying time as the weather starts to get colder and we turn on our heating but what will this mean to Octopus Energy bills?

In this post, I will quickly explain how Octopus Energy tariffs could react to market changes. As a customer, I think it’s important to know what’s going on so you can make the best choices that will hopefully save you money on your energy bills. If Octopus prices are going up what’s the best thing to do?

I am a mum to 3 school-age daughters and have become hyper-focused on my energy bills. Energy now feels like a luxury commodity. This has made me more determined than ever to try and lower my bills and get the best value for money.

I have been a happy Octopus customer for 6 years. Switching suppliers helped me control my energy bills. Octopus Energy cares about its customers and constantly fights government policy to improve things.  This is the only way we will see prices drop to a level that doesn’t make energy a luxury commodity.

Written by Sarah Chambers

Energy prices from October 2024 will you pay more for your energy?

The Energy Price Cap in October 2024 is increasing. If you are on a standard variable tariff, such as the Octopus Flexible tariff you’ll pay more per kWh for your energy than you did in the summer.

This is because the UK is dependent on gas on the global market and it’s gone up over the summer. As a whole prices have come down over the last two years but wholesale gas is still 3 times higher than in 2020 and so prices remain high. Our home energy bills be it gas or electricity are all linked to the global prices of wholesale gas.

This winter is going to be incredibly tough for millions of UK homes. Scrapping the winter fuel payments for pensioners when energy prices are still high makes no sense and I worry for many older people this winter.

Most households are on the standard variable rate in the UK, with Octopus this is called the Octopus Flexible tariff. The price of the flexible tariff will increase for existing Octopus customers on the 1st of October 2024.  For new Octopus customers, the prices of the increased October flexible rates are already being quoted at the time you switch. This makes sense as it highlights that the Octopus 15-month fixed tariff is cheaper, with no exit fees.

Here are the increased Octopus Flexible rates for October 2024. These new rates will last until the 31st of December when it is anticipated the price cap will rise by a further 3%.

Are Octopus Energy Prices going up in 2025?

No one can say for certain what will happen in the energy market but analysts predict that the price cap will not drop back down to the levels we have seen this summer for at least the next 12 months.  Prices are going up in October 2024 and are predicted to hover around this rate for the next year.

If you are on the Octopus Flexible tariff you will see the price you pay per kWh go up on the 1st of October 2024. You may also see a suggested new direct debit payment based on the increased price.

However, the Octopus Flexible tariff isn’t the only tariff Octopus offers and this is where it gets interesting if you are trying to save money on your energy bills.

Octopus Energy has sent out emails to millions of its customers to let them know they could pay less than the October energy price cap and fix their energy rate for 15 months will no exit fees.  That’s the swivel-head moment. You can opt out of the Octopus 15-month fixed tariff with no exit fee. You are not locked into a contract that could catch you out if energy prices drop.

I’ve been shouting about taking an Octopus fixed tariff either as a new or existing customer for quite some time over on TikTok. Here is some advice I gave a friend who was on the Octopus Flexible tariff at the time.

Since making this TikTok the Octopus 12-month fixed has changed to a 15-month fixed tariff but there’s still no exit fee. The Octopus 15-month fixed is now available 4% below the October 2024 Energy Price Cap.

@sarah_go_green Replying to @Laura Yes take the @Octopus Energy ♬ original sound – sarah_go_green

How to try and beat the system and pay less for your energy bills this winter with Octopus Energy.

It is quite hard to believe but there is one energy supplier that is trying to help customers beat the system and pay less for their energy bills and they are Octopus Energy.

I can hear some people scoffing already but Octopus doesn’t believe the current energy system is fit for purpose.  They want to harness cheap power like wind and solar and pass on the savings to customers but as all energy prices are linked to the global gas market prices in the UK they dictate how much we all pay for our energy.

Octopus is fighting for change and has come up with some imaginative and innovative ideas to help you save money on your energy bill. Take a look at my complete review of all Octopus Energy tariffs and see how you could save money this winter.

Here is Greg Jackson, CEO of Octopus Energy explaining why prices are going up and what can be done to effect change.

These are just some of the ways I am trying to reduce my Octopus energy bill.

1. Free energy when green energy is abundant on the grid – I’ve had free electricty 5 times so far over the last few weeks.  Octopus sent me an alert via email to say for one hour the next day I could get free electricty if I used more than I normally do at that time of day. They give me the time slot and to be fair I’ve filled my boots. Yesterday, as an example, I turned my immersion heater on for hot water, roasted vegetables to freeze batched cooked meals, charged my Electric Vehicle and had the washing machine and tumble dryer on a one-hour cycle.
2. Octopus Tracker Tariff – This is a smart tariff which follows wholesale prices. The prices you pay will change every day. I have been on this tariff just for my gas for 2 years. At the moment it is close to the flexible rate but it is still cheaper and has been for the last 2 years. As you take on the risk rather than Octopus the formula they use to calculate the price per kWh has less profit for them. (Well, that’s how I have interpreted it.)
3. Octopus EV tariff – I am on a tariff called Intelligent Octopus Go which is designed for EV owners. This gives me a cheaper overnight rate which allows me to charge my car and run my home overnight when there is less demand on the national grid.
4. Solar export tariff – I am on Octopus Outgoing fixed which allows me to export solar to the national grid and make a credit on my energy bill.

You can save money on your Octopus Energy bill all you need is a smart meter.

I have a smart meter and some green tech such as an EV but you don’t need to have anything other than a smart tariff to try and save money with Octopus Energy.

Octopus Agile as an example is a smart tariff which could end up paying you to use energy if it is particularly windy, yep you get paid to turn on the washing machine!

You also get access to Octoplus when you have a smart meter which has lots of rewards and savings for customers.  Just remember to opt in as it is not automatically done when you have a smart meter.

Octopus chaos monkeys.

I am not sure if it is just me but any company that has a section called the Chaos Monkeys sounds like they are up for a challenge. I love the idea that technology, enthusiasm and an unrelenting passion for change could rock the UK energy market making it sit up and listen.

These guys come up with ideas that save us money on our energy bills harnessing tech and Mother Nature. It is disgraceful that we are paying people to turn off wind turbines that could save us money on our energy bills. They make money while cheap energy that could be sold to customers is wasted. Hats off to the chaos money if they can find a way for us to save money on our bills!

Will GB Energy help lower energy bills?

GB Energy is the UK Government’s new publicly-owned energy company.  GB Energy will not supply power to your home. They will add more renewables to the grid and with that comes opportunities and energy security.

I envisage Octopus Energy grabbing every opportunity GB Energy creates. Octopus Energy has created Kraken software the world’s fastest-growing energy platform. Kraken has a couple of uses and one of them is to enable the Octopus smart tariffs that take advantage of cheaper energy when wind and sunshine are abundant.

On a personal note, Octopus has transformed my relationship with energy.  It’s probably why they are now the largest electricty supplier in the UK despite being one of the youngest. They use innovation to empower their customers and lower their energy bills.

Octopus already helps customers reap the benefits of cheaper greener energy when the winds blowing or the sun is shining. They have proven they will pass on rewards to their customers. That is what we need in bucket loads.

I am hoping GB Energy is going to be a big win for consumers and the planet. We need a supplier like Octopus to ensure we see the savings on our energy bills. Not only do they press for change but think outside the box and that is what we need going forward.