Octopus Energy Agile Tariff Review.

How does the Octopus Agile tariff work?

Every day, Octopus Energy updates the price you pay per kWh for your electricity. Unlike other tariffs, the price you pay per kWh changes every 30 minutes and Octopus publishes a list of prices the day before.  You can view the rates on your Octopus dashboard and decide if and when to use electricity the next day.

After 4.30 pm each day, Octopus Agile customers can check energy prices for the following day either online or through the Octopus Energy app. This allows customers to find the cheapest windows for their energy use.

There is always a surge in domestic energy use between 4 pm and 7 pm, so Agile energy prices rise.  As a customer, all you need to do is adjust your consumption so you avoid these peak times to reduce your energy bill. While extreme price spikes are rare and short-lived, they typically last 30 minutes to an hour.

The price you pay on the Octopus Agile tariff is based on an independently published wholesale market price. This is the price available to all suppliers.

Why does the Octopus Agile tariff change every 30 minutes?

When there is less demand on the national grid or there is excess energy Octopus Agile prices fall. In reverse when there is extra demand on the grid prices rise. This is why the Octopus Agile tariff is suitable for customers who can decide when and how to use their energy.

How much you will pay per kWh on the Octopus Agile tariff?

Unless you have a crystal ball you can’t predict how much you will pay for your electricity in the future on the Octopus Agile tariff. You can know the prices for the next 24-48 hours but beyond that, you are subject to the spot prices of the wholesale energy market.

Octopus Agile tariff price on Friday 31st March 2023

This is the November version 1 of the Agile tariff.

Min: 19.2p per kWh (22.30)

Max: 34.0p per kWh (16.30)

Average: 26.3p per kWh.

Av. Excluding Peak times: 25.2p per kWh

Peak Time 1600 – 1900: 34.0p per kWh.

The prices are based on national average prices per kWh.

There is a cap of £1 per kWh on this version of the Agile tariff and you receive the Energy Price Guarantee discount.

How is the Energy Price Guarantee discount applied to the Octopus Agile Tariff?

Octopus has stated that the Energy Price Guarantee discount will apply to the Octopus Agile Tariff.

The EPG discount will apply whenever Agile unit rates go above the base EPG level (34p / kWh on average, but this does vary regionally).

For example, a unit rate of 80p / kWh would be reduced to 62p / kWh.

The EPG is also applied after the maximum unit rate cap. This offers an additional saving for Agile customers against high wholesale unit rates.

For example, a unit rate of 120p / kWh is capped at 100p / kWh, then the EPG discount reduces this to 82p / kWh.

Just remember you can switch to the Octopus flexible tariff at any time if prices become too high.

You can read an explanation as to how the energy price guarantee affects the Octopus Agile tariff in this Octopus blog post

Looking a little deeper at how the Octopus Agile works. 

Octopus’ smart technology makes the Agile tariffs possible.  Kraken, a platform created by Octopus enables energy providers to deliver groundbreaking half-hourly time-of-use tariffs to customers.

“Kraken is Octopus Energy’s proprietary technology, a globally scalable platform designed to drive the smart grid and greatly improve the efficiency and customer service of energy suppliers.”

Not only have Octopus created the technology that allows end-users to make use of half-hourly pricing but they also licence it too. Several UK energy providers pay Octopus to use their platform. There are currently over 17 million energy accounts worldwide and they are targeting 100 million accounts by 2027!

Is now a good time to switch to the Octopus Agile Tariff?

In my opinion, it is a very good time to switch to the Octopus Agile tariff IF you can monitor your usage each day.  Even though wholesale prices have dropped the Energy Price Cap is based on historical wholesale prices which are significantly higher than wholesale energy prices now. Octopus Agile follows the current wholesale energy prices so you will get those reductions in the price you pay per kWh today!

The Energy Price Guarantee now dictates how much most people pay for their energy on standard tariffs. By switching to the Octopus Agile tariff you won’t have to wait for the standard variable tariff to play catch up on the fall in wholesale energy prices.

Octopus Agile can also allow you to use energy when demand on the national grid is low bringing down prices to a minimum, sometimes even free. Shift your energy use outside the 4-7 pm peak to save money and use cleaner, greener energy when there is less demand on the grid. Plus “plunge” pricing when there is an excess of green energy and wholesale prices go negative could even pay you to use energy!

At the moment it is my opinion this is a great tariff if you have a smart meter and have the time to hustle and try to save money on your energy bill.

There was been a recent blog post by Martin Lewis on the Money Saving Expert website which also agrees.

Octopus Agile Bills

At the end of the month, Agile customers receive a statement. The front page looks like your typical energy bill, but for those who like more detail, there is also a full line-by-line breakdown of customers’ daily consumption by each half-hour, summarised for each day with a graph and their average price per kWh. This should also include any discount applied as part of the Energy Price Guarantee.

How do you switch to Octopus Agile as a new customer?

All traditional and smart tariffs are available to new customers. Yes, you can switch to Octopus Energy using the link below. For any smart / Agile tariffs, you will have to sign up for the Octopus Flexible tariff first and then when the switch is complete ask to be moved to the smart or agile tariff.

1. Switch to Octopus Energy. (This usually takes around 17 days)
2. Octopus must be satisfied that they are receiving half-hourly readings from your smart meter. (This usually happens within 14 days but could take longer)
3. Your dashboard will show you can switch to Octopus Agile.

If you haven’t got a smart meter it’s a case of switching, requesting a smart meter, and waiting for an installation date to become available in your area. You’ll need a Secure SMETS1 (secure is the brand name) or a SMETS2 smart meter to switch to any of the Octopus smart tariffs.

Tip: If you have been with another supplier and you’re not sure if your SMETS1 smart meter will work Octopus look for the word “Secure”. It may be written on the front of your smart meter.  Secure is a tradename.  Secure also supplied meters to Utilita, Shell, OVO, E.ON, and Bristol Energy.  Any other brand of SMETS1 smart meter will not retain its smart functionality if you switch to Octopus.

How can I tell if I have a SMETS2 smart meter already?

Look out for ‘GUID’ or a Device ID which looks like this: AA-BB-CC-DD-EE-FF-00-GG-ZZ on the front of the meter.  If you can see a number like this it is a good indication you have a SMETS2 meter.  

Switching and Contact Octopus Energy.

If you are super keen once you have signed up as a new customer email [email protected] or DM Octopus on Twitter quoting your account number.  You can also phone them on 0808 164 1088.

My preferred method is to contact Octopus via Twitter they are really quick to reply but if you choose to call Octopus after signing up you can even select your on-hold music from your Octopus dashboard. They think of everything! Just ask if once your switch is complete they can automatically transfer you onto the tracker tariff. I’ve switched tariffs lots of times via Twitter.

If you use my referral link to switch we will both receive £50 credit on our energy bill. So a big thank you if you use mine!

After answering a few short questions you will be given a quote for the Octopus Flexible tariff. I had circled the price per kWh. You will notice that the price per kWh is currently cheaper Octopus Tracker tariff.

You’ll be an Octopus Energy customer in no time. Switch and claim your £50 new customer credit by using my referral link. There’s no exit fee or long-term lock with Octopus Energy. The switch is usually completed within 17 days. It’s a great way to get cashback when you join Octopus Energy as a new customer. (no code required just use the linked pages.)

Switching to Octopus and changing tariffs as soon as your switch is complete does not affect your £50 credit.

You’ll be given  £50 credit after your first direct debit is taken and you’ll get your own personal referral code to share with friends and family as soon as you have signed up.

Tip: The £50 credit is added to your balance after your first payment is made. If you opt to make a one-off payment eg £5 (the link is on your Octopus dashboard) this should trigger the £50 credit being added a day or two later. So you should get it earlier.