BEAT THE JANUARY 2025 ENERGY PRICE CAP WITH AN OCTOPUS 12-MONTH FIXED TARIFF.
Looking for a cheaper energy deal? On Friday, 22nd November 2024, while Ofgem announced a 1.2% energy price cap increase for January 2025, Octopus Energy put customers first. They slashed their Octopus 12-month fixed tariff to 7.5% below the upcoming January 2025 price cap, letting you lock in a cheaper rate for the year ahead. Secure peace of mind with a lower 12-month fixed rate now!
If you are considering leaping and fixing your Octopus Energy tariff as a new or existing customer let me explain the security it could offer in 2025.
Should you fix your Octopus Energy tariff at 7.5% less than the January 2025 Energy Price Cap?
You may be scratching your head wondering what the catch is but there isn’t a catch at all. In January 2025 if you are on the Octopus Flexible tariff or a standard variable with another supplier the price you pay for your energy will go up. The Octopus November v2 of the 12-month fixed tariff is 6.3% below the October price cap and 7.5% below the January 2025 price cap.
The crucial elements to be aware of are;
- There are no exit fees so you can take a cheaper rate if one becomes available.
- The 12-month fixed tariff is open to new and existing Octopus Energy customers.
- You do not need a smart meter.
- You can get an extra £50 off in the form of a £50 credit on your bill if you switch to Octopus Energy as a new customer. That’s an extra 2.9% off the January 2025 Energy Price Cap. Bring your savings, based on dual typical use to 10.4% below the January Energy Price Cap.
If you are either a new or existing customer why would you accept a 1.2% increase on your variable rate in January 2025 when could take the Octopus 12 months fixed at 7.5% less? If there was an exit fee there may be a reason to be cautious but with no exit fee, you aren’t locked into overpaying if prices should drop.
@sarah_go_green How to switch to @Octopus Electric Vehicles and save around 10.4% compared to the January 2025 Energy Price Cap. No exit fees so you won’t get trapped overpaying. #energybills #moneysavingtips ♬ Christmas Is Coming – DM Production
Why are energy prices increasing in January 2025 under the Energy Price Cap?
Over the last three months, Ofgem, which sets the price of the Energy Price Cap in the UK, has been monitoring wholesale energy prices. They always base the new Energy Price Cap on the past three months, from September to November 2024, when wholesale energy prices have gone up.
The worry is that some analysts are predicting that during the next three months, December to February 2025, wholesale energy prices will continue to rise due to all the uncertainty and conflict in Ukraine and the Middle East. If wholesale prices do rise in the next three months, the April 2025 Energy Price Cap will rise, too. Some analysts are predicting a 2-3% increase.
You may notice I say some analysts are predicting a rise further in April 2025, and that’s because not everyone agrees. No one knows for certain what will happen in the next three months. We can have an idea based on the state of politics, but it is all crystal ball views at the moment.
Why fixing your Octopus Energy bill with no exit fee is a good idea.
If you aren’t looking at any smart tariffs, for example, Octopus Agile and you are just considering an Octopus Fixed or Flexible tariff the Octopus 12 months fixed makes sense because;
- You won’t be overpaying by an average of 7.5% for your energy between 1st January and 31st March.
- If in April 2025 the Energy Price Cap increases the rate you pay won’t increase.
- If energy prices do drop you can take. cheaper rate at any time with no exit fee.
It is important to note energy prices are not predicted to be as low as they are now throughout 2025. (Which is a concerning thought.)
About the author: I’ve been a happy Octopus Energy customer for 6 years.
This is me. I can be found on social media as Sarah_Go_Green and I have been an Octopus customer for 6 years. I’m featured on the Octopus website and their YouTube channel as a solar customer. I’ve been on the BBC news, published in the Telegraph for owning part of a wind turbine.
Recently I’ve been in Bloomberg simply for being an energy geek. I love renewable energy and make it my mission to reduce my family’s home energy bills while improving our carbon footprint. I’ve got around 10,000 followers across X and TikTok where I talk about electrifying my home and reducing my Octopus energy bill. I can help you too! I’ve done a quick voice note below to say hello.