BEAT THE JANUARY 2025 ENERGY PRICE CAP WITH AN OCTOPUS 14-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.
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
Update: On the 1st of April 2025 Octopus slashed the price of the Octopus Fixed tariff and there have been a few versions since. On the 10th of April 2025, the current 12 months fixed is approximately 10% less than the April 2025 Energy Price Cap and there are no exit fees.
As of 17th March 2025 – wholesale energy prices are still volatile.
Since posting this blog in November, wholesale energy prices have increased, and analysts predict another rise in the Energy Price Cap for April 2025. However, Octopus Energy introduced a new 16-month fixed rate on the 12th of February 2025. This was replaced on the 5th March with a 14-month fixed, but the good news on the 15th March, it dropped to around 2% below the January cap. This presents an opportune moment to secure a 14-month fixed rate and maintain control over your energy expenses.
If you were able to fix your energy rate when Octopus Energy challenged the January Price Cap back in November, congratulations! However, there’s still a chance to lock in rates lower than all the predicted energy price caps for 2025. Prices are not predicted to drop below the January 2025 price cap rates through 2025.
Imagine if analysts are correct and today’s energy prices are the lowest of 2025! Secure your rates with the Octopus 16-month fixed tariff – no exit fees mean no risk if better deals emerge.
Should you fix your Octopus Energy tariff just below the April 2025 Energy Price Cap?
Predicted Energy Prices Are Rising in 2025 / 2026.
- April 2025 Price Cap Increase Confirmed – More rises are predicted in the autumn.
- Octopus 14-Month Fixed – Lock-in rates which are well below the April 2025 Price Cap until at least May 2026 (depending on when you switch).
- Covers This Winter & Next – A smart move to avoid future hikes! 🚀
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 March 2025 v3 of the 14-month fixed tariff is around 2% below the January 2025 price cap and it’ll prevent your tariff rates from going up on 1st April 2025.
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 14-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 2.7% off the April 2025 Energy Price Cap. Bring your savings, based on dual typical use to around 11% below the April Energy Price Cap.
If you want to look ahead, switching to Octopus 14-Month Fixed tariff for savings you would pay less than the up-and-coming price cap rates from April to June 30th, 2025 with no exit fee!
The April 2025 Energy Price Cap was announced on 25th February 2025.
Tip: Existing customers can choose the Loyal Octopus 14M Fixed March v3 tariff, which offers on average 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.
Why are energy prices increasing in April 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, forcing the rise in January 2025.
In the April Price Cap assessment period, which was December 2024 to February 2025, wholesale energy prices have continued to rise due to the uncertainty and conflict in Ukraine and the Middle East. This is why Ofgem announced a 6.4% increase in April Price Cap.
We will have to wait until the end of May to know if it will rise or fall in the summer.
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 14 months fixed makes sense because;
- You won’t be overpaying for your energy between 1st January and 31st March.
- With the price cap rising by a further 6.4% on 1st April 2025, your rate will remain unchanged.
- If energy prices do drop, you can take the cheaper rate at any time with no exit fee.
It is important to note that energy prices are not predicted to be as low as they are now throughout 2025. (Which is a concerning thought.)
FAQs – Octopus Energy Tariff 2025
1️⃣ Will Octopus Energy prices go up in 2025?
👉 Yes. Ofgem announced a 6.4% Energy Price Cap increase in April 2025, with a possible further increase in October. Fixing now locks in today’s prices before these increases.
2️⃣ Should I fix my Octopus Energy tariff before April?
👉 Yes. Fixing now protects you from the April price rise, and since there are no exit fees, you can switch later if prices drop.
3️⃣ What’s the best Octopus Energy tariff for new customers?
👉 The Octopus 14-Month Fixed Tariff is the best deal for 2025 as it’s cheaper than predicted Energy Price Cap increases. No exit fees mean you can switch if a better deal comes up.
4️⃣ How much will I save by fixing my Octopus tariff now?
👉 A typical household could save £100+ per year by switching from the flexible to the fixed tariff before the April 2025 price rise. If you are a higher user, the savings will be more as unit rates have increased while standing charges have changed.
5️⃣ Can I switch Octopus tariffs if a cheaper deal comes up?
👉 Yes. Octopus Energy has no exit fees, so you can switch to a better deal anytime.
6️⃣ Do I need a smart meter to switch to Octopus Energy?
👉 No. You can switch to Octopus without a smart meter. But if you install one, you can access Octopus Smart Tariffs like Agile and Cosy.
7️⃣ How do I switch to Octopus Energy as a new customer?
1️⃣ Get a quote on the Octopus website.
2️⃣ Choose a tariff (Flexible or 14-Month Fixed).
3️⃣ Sign up & switch – Octopus handles the rest!
💰 Use my referral link for £50 credit!
8️⃣ How long does it take to switch to Octopus Energy?
👉 3-5 days, with no disruption to your energy supply. You also get a 14-day cooling-off period if you change your mind.
9️⃣ What does Martin Lewis say about fixing energy prices?
👉 Martin Lewis recommends fixing if the deal is no more than 4% above the January 2025 Price Cap. The Octopus 14-Month Fixed Tariff meets this benchmark.
🔟 Is Octopus Energy a good supplier?
👉 Yes! Octopus Energy is the UK’s largest electricity supplier, offers 100% renewable energy, and has award-winning customer service.
Prices can change at any time so make sure you check my main Octopus Energy tariff Comparison blog post which is updated several times a week or visit the Octopus Energy website for a quote.
About the author: I’ve been a happy Octopus Energy customer for 6 years.
This is me. I am 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.