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should i fix my octopus tariff 2024

Should you fix your Octopus Energy Tariff for 2024?

Updated 15th June 2024

You can now switch to an Octopus Energy 12-month fixed tariff and swap it anytime without penalty. It’s roughly 3% below the April 2024 Energy Price Cap.

The new July 2024 Energy Price Cap has been announced today 24th May.

Martin Lewis has been shouting about taking a fixed tariff on his BBC podcast today.

If you are a new or existing Octopus Customer and you are thinking of switching suppliers it is a good time to review your tariff and make a plan for 2024.

Written by Sarah Chambers

Octopus Energy quote for a fixed deal

Octopus 12 Months Fixed Tariff is approximately 3% lower than the April Energy Price Cap.

There is currently only one traditional Octopus Energy 12 Months Fixed tariff this is open to both new and existing customers. This is the Octopus 12-month fixed June v 3 tariff and it’s worth considering if you prefer the assurance of a fixed energy deal.

  • The Octopus 12-month fixed is around 3% below the current Energy Price Cap for 12 months and there are no exit fees.
  • It is predicted that you will make a saving over the next 12 months if you can fix up to 2% MORE than the current April Energy Price Cap. (Martin Lewis)

Martin Lewis suggests fixing up to 2% more than the current Energy Price Cap as on typical use 2% more than is £1,724 a year and the typical use prediction for the Energy Price Cap in October 2024 and January 2025 is £1,761.

No one has typical usage so it’s important to look at the price per kWh and your own energy needs but it provides a general idea why a fixed rate up to 2% above the existing Energy Price Cap is worth considering.

Energy Price Cap predictions are warning of a rise in October 2024.

Predictions are changing and the Energy Price Cap is predicted to rise by around 5% on 1st October 2024 compared to the current April Energy Price Cap. That’s a 12% rise compared to the July 2024 Energy Price Cap!!

So if predictions are correct you will save money taking this Octopus 12-month fixed rate now.

I have changed my tune slightly over the last month. I was saying hold out slightly longer for a cheaper Octopus fixed but wholesale energy prices have started to rise, only slightly but enough to make taking an Octopus fixed deal quite a sensible option if you prefer a fixed rate and you aren’t interested in a smart tariff.

There were two Octopus fixed tariffs but Octopus has scrapped the Octopus Loyal 12 months fixed tariff which rewarded customers who had been with Octopus for eight months with a rate that was 4% below the April Energy Price Cap. Now anyone can opt for the Octopus 12-month fixed June 2024 v3 tariff which is around 3% below the April Energy Price Cap

Advantages of switching to an Octopus Energy 12 months fixed tariff now;

  1. You’ll lock in a rate you can switch away from at any time with no exit fees.
  2. £50 credit when you switch using my referral link.
  3. There are no exit fees or requirements for a smart meter.

Disadvantages of Switching to an Octopus Energy 12 months fixed tariff now;

  • You could save more now by taking an Octopus smart tariff, eg Octopus Tracker or Octopus Agile tariff.

There are still no exit fees on the Octopus 12-month fixed rate tariff so if prices suddenly drop you can swap to the cheaper Octopus fixed deal but 4% below the current price cap is worth considering in light of increasing predictions of energy prices for the winter.

As a new customer, you can switch to the Octopus Energy 12 Months Fixed tariff when you switch from your current supplier. The Octopus 12-month fixed is 3% lower than the April 2024 Energy Price Cap and there’s a 4% discount on the daily standing charge set by Ofgem.

Octopus Energy 12 Months Fixed Tariff.

If you are thinking of switching to Octopus Energy you can now switch to either the Octopus Flexible tariff or Octopus 12 Months Fixed Tariff at the time of switching.

The 12-month fixed is roughly 3% cheaper than the current Appril Energy Price Cap.

The July Energy Price Cap is predicted to fall by 7% BUT the October Energy Price Cap is predicted to rise by 12% compared to the July rates! That’s according to a new prediction on 22nd May by Cornwall Insight.

You will pay slightly more per unit of energy in the summer you’ll use less energy during this period too. The Octopus 12-month fixed could work out cheaper than the Energy Price Cap rates come winter. That’s more important in my book!

When switching, new customers can switch to the Octopus 12-month fixed tariff or the Octopus Flexible tariff. You could grab the Octopus 12 months fixed and if prices drop further in the autumn switch to the Octopus Flexible rate or a cheaper fixed if it becomes available.

On the Octopus 12 Months Fixed Tariff June v 3 2024 you will pay;

  • Electricity –  23.88p per kWh with a standing charge of 61.19p per day
  • Gas – 6.02p per kWh with a standing charge of 29.68p per day.

This quote is for South Wales, and prices vary slightly throughout the UK.

Read my blog post – Compare Octopus Energy Tariffs 2024

customer review on octopus tariffs

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 7,000 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.

What has happened to the Octopus Loyal 12-Months Fixed Tariff?

The Loyal Octopus 12-month fixed tariff was 4% below the April Energy Price Cap and was open to Octopus customers who had been with them for at least 8 months. It rewarded loyal Octopus customers with a cheaper energy rate. This was withdrawn and now everyone can get an Octopus 12-month fixed tariff which is approximately 3% below the Energy Price Cap for a dual-fuel customer too.

Octopus 12 Months Fixed Tariffs v Octopus Flexible Tariff. What’s the difference?

The Energy Price Cap is the default tariff in the UK. It is referred to as the Standard Variable Rate and acts like a 3-month fixed tariff which changes on the 1st of  January, 1st of April, 1st of July and 1st of October. When you are an Octopus Energy customer this is called the Octopus Flexible tariff.

The Octopus 12-month fixed tariff is fixed at the time of switching tariffs. Your costs per unit for your energy won’t change for 12 months and your standing charge is locked in too. Your tariff will remain the same for 12 months. There are no exit fees.

If you are an existing Octopus Energy customer you can check the name and rates of your current tariff on the home page of your Octopus Energy dashboard or check on the Octopus tariffs page. Just enter your postcode but do not select “Get a quote”. I would suggest clicking in the filter box to just see domestic tariffs.

If you are with another supplier how do you know if you are on the Energy Price Cap?

As a rough rule of thumb you will be on a default tariff if which follows the Energy Price Cap if;

  • You have never switched your energy tariff.
  • Your fixed deal has ended but you haven’t chosen a new tariff.
  • Your last supplier went bust and you’ve been transferred to a new one

If you are still unsure check your bill or contact your current supplier to ask.

1st July 2024 to 3oth September 2024 Energy Price Cap.

The Energy Price Cap will fall by 7% on the 1st of July 2024.

The chart below shows the current Energy Price Cap rates v both Octopus 12-month Fixed tariffs

The worrying thing is that compared to the July Energy Price Cap prices are predicted to rise by 12% on the 1st October 2024. If you want to look ahead to January 2025 it is more of a guess the further ahead you look and Cornwall Insight hasn’t yet updated its predictions in June.

As an illustration here are the current rates for the Octopus 12 months fixed tariffs, the Octopus Flexible tariff and predicted prices changed in 2024. The figures used below are from Cornwall Insight,  Ofgem and the Octopus Energy website.

I have also used the updated Cornwall Insight predictions published on the 22nd of May.

Octopus Energy Tariff.Time PeriodElectricty price per kWh.Gas price price per kWh
Octopus 12 months fixed June v3
South Wales
2nd June - Now.23.88p6.02p
Loyal Octopus 12 months fixed -
South Wales
NowN/AN/A
Octopus Flexible Tariff.
South Wales
1st April - 30th June 202424.51p6.25p
Octopus Flexible Tariff -
South Wales.
1st July - 30th September 202423.37p5.69p
Octopus Flexible Tariff - best guess
National Average
1st October - 31st December 202425.77p6.29p
Octopus Flexible Tariff - THIS PREDICTION WILL GO UP
National Average.
1st January to 31st March 202525.77p6.29p

Should you take an Octopus Fixed Tariff now?

Octopus Energy has revised its fixed price and introduced the Octopus 12-month fixed June version 3.  This Octopus 12-month fixed tariff is open to anyone and is around 3% below the April Energy Price Cap.

Wholesale prices have started to creep up but Octopus has a fixed rate so that it is competitive. It’s competition that is keeping the fixed rate down but I don’t know how long this will last.

What does Martin Lewis say about taking a fixed tariff now?

Martin Lewis said, “You can lock in a price now over the next year. Have peace of mind that you will know exactly what you will pay and the probability if the predictions are right are it will be cheaper than staying on the Price Cap – BBC Podcast 23rd May 2024.

 

The announcement has now been made about the July Energy Price Cap and combined with the new prediction of a 5% rise on 1st October (12% rise compared to the July Energy Price Cap)  the Octopus 12-month Fixed tariff is worth considering.

Martin Lewis’ fixed rates on the Money Saving Expert website show other suppliers who offer competitive fixed rates too but to qualify for some of those you’ll need to sign up for a smart meter and be locked in with a £5o exit fee.

My suggestion is to consider the Octopus 12 Months Fixed now.  You can always swap tariffs if prices go down. You can’t grab the cheaper rates if prices go up.

Predictions have changed and the goalposts are forever moving.

On the 22nd of May 2024, Cornwall Insight changed its predictions for Energy price caps for 2024/22025. This is also included in their report on 24 May 2024.

The wholesale energy market is no longer going down. There has been a slight upturn in prices.

I think the autumn and winter rates are the ones that need to be looked at as you use less energy in the summer months.

The general election may have an impact on energy prices. Let’s hope one of the parties makes a plan to get prices down in the winter but who knows if they will see this as a priority.

How to find the rates of the Octopus Loyal 12 months Tariff?

If you are an existing Octopus Energy customer you can see the rates of the Octopus Loyal 12 months fixed tariff on your Octopus dashboard. If your switch is not yet complete you can find these rates here. Enter your postcode but do not click to “get a quote”.

For now, the Loyal 12-month fixed has vanished but I prefer a cheaper fixed rate for everyone.

How do you find the rates for the Octopus 12-month fixed tariff?

If you are a new customer you can now switch to the Octopus 12 Months Fixed Tariff when you switch to Octopus Energy. New customers are now given the option of the Octopus Flexible Tariff or the Octopus 12-Month Fixed Tariff. You can get a quote online. This is where you will see the rates for your area.

Should you fix or stick with the Octopus Flexible tariff?

Considering the Octopus Energy fixed rate now isn’t a bad idea.

Fixed energy deals are based on current wholesale energy prices. The Octopus Fixed rates are lower than the April Energy Price Cap. There’s not a lot of difference come July. The time you need to focus on is the winter when you can’t avoid having the heating and light on.

Octopus Energy July 2024 Energy Price Cap

At the moment wholesale energy prices are creeping up again. When the Energy Price Cap goes down in July this does not mean cheaper fixed deals will become available. The two are not linked. The Energy Price Cap is based on the previous 3 months of wholesale energy rates while the fixed rates offered by suppliers are based on the wholesale rate NOW.

If wholesale energy prices are rising it means that energy suppliers have to buy your energy when you fix your tariff at a higher rate too. So we may well see the Octopus 12-month fixed rate being offered in July being higher than it is now.

Predictions are just that. They can change depending on politics and conflicts.

Cornwall Insight reports are the figures Martin Lewis uses to provide his energy advice, but these are just predictions.

Gas and electricity will fall further in the summer of 2024 but not as much as previously predicted. They are predicted to go back up in the winter when we all use more energy.

Ofgem is also looking at redistributing standing charges into the unit rate even further. If you took a fixed you’d miss part of this because your terms and rates would be fixed for 12 months. But who knows when Ofgem will action these changes?

You don’t have to fix both energy types. With Octopus you have the option to fix your gas tariff and have your electricity tariff as flexible. Alternatively, you could choose an Octopus smart tariff for one fuel type and a fixed one for the other.

Here is a comparison between the Octopus 12-Month Fixed tariff, Octopus Flexible Tariff and the Octopus Tracker Tariff.

Just remember the Octopus 12-month fixed rate that is available today may change at any time. If it goes down and you’ve already fixed you can swap to the lower rate. But if you haven’t taken a fixed and it goes up you can’t get that cheaper rate.

Octopus Flexible TariffOctopus Flexible TariffOctopus 12 months Fixed Tariff 2024 - June v3
Tracker Tariff

Rates per kWh Fixed until 30th June 24NEW Price Cap - 1st July to 30th September 2024Fixed for 12 months - Now to 2025.Rate change daily - 15th June 2024
Electricity24.51p 23.37p23.88p20.08p
Gas6.25p 5.68p6.02p4.99p

These are the rates for South Wales.

If you have a smart tariff please also consider the Octopus tracker. It is a great deal but what’s the cheapest Octopus Energy Tariff in 2024?

Customer review.

My website is not managed or owned by Octopus Energy. It is just a website created by, Sarah Go Green.  I’m a mum, a home energy geek and a very happy Octopus Energy customer.

You can read further independent Octopus Energy reviews on Trustpilot where 89% of customers give them 5 stars.

Join me for energy chat over on X which is formally Twitter @Sarah_Go_Green