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should i fix my octopus tariff 2024

Should you fix your Octopus Energy Tariff for 2024?

On the 9th of February 2024, Octopus Energy removed all its exit fees. You can now take an Octopus Energy 12-month fixed tariff and swap it at any time with no penalties.  Both Octopus Energy’s 12-month fixed tariffs are now in line with the April 2024 Energy Price Cap. Yes, the 12% reduction has been applied and a little extra has been taken off the daily standing charge.

The Loyal Octopus 12-month fixed tariff and the Octopus 12-month fixed tariff can give you peace of mind whilst lowering your energy bill.  Both Octopus fixed tariffs are lower than the current  January 2024 Energy Price Cap. But be prepared to jump onto cheaper fixed or flexible rates to stay ahead of the July Energy Price Cap which is set to fall further by the summer.

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 as the energy market starts to stabilise and offers start to become more attractive.

There are two traditional Octopus 12 Months Fixed Tariffs to choose from.

There are currently two traditional Octopus 12 Months Fixed tariffs.

  • Loyal Octopus 12 Months Fixed tariff.
  • Octopus 12 Months Fixed tariff.

No exit fees.

As a new customer, you can switch to the Octopus 12 Months Fixed Tariff when you switch from your current supplier. The Octopus 12-month fixed is 12% below the January 2024 Energy Price Cap plus there’s a slight discount on the daily standing charge.

Once you have been with Octopus Energy for 8 months you qualify for the Loyal Octopus 12-month fixed tariff but at the moment that’s the same price as the standard Octopus 12-month fixed tariff.

Octopus 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. This changed on the 9th of February 2024. Previously new customers had to sign up to the Octopus Flexible Tariff before being able to switch tariffs as an existing customer to the Loyal Octopus 12 Months Fixed tariff.

Now new customers can switch to the Octopus 12 months fixed or the Octopus Flexible tariff but have to wait 8 months before being eligible for the Loyal version of the Octopus fixed tariff. (It is currently the same price but I have a feeling this will change.)

On the Octopus 12 Months Fixed Tariff February 2024 version 3 you will pay;

  • Electricity –  24.51p per kWh with a standing charge of 62.57p per day
  • Gas – 6.25p per kWh with a standing charge of 31.06p per day.

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

If you have a smart meter make sure you look at the Octopus Tracker tariff and give it some consideration too.

Octopus Loyal 12-Months Fixed Tariff.

The Loyal Octopus 12 Months Fixed Tariff is open to all Octopus Energy customers who have been with Octopus for at least 8 months.

As an existing customer on the Loyal Octopus 12 Months Fixed Tariff February 2024 version 3 you will pay;

  • Electricity –  24.51p per kWh with a standing charge of 62.57p per day
  • Gas – 6.25p per kWh with a standing charge of 31.06p per day.

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

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 and 1st of September. When you are an Octopus Energy customer this is called the Octopus Flexible tariff.

Both Octopus 12-month fixed tariffs are 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 April 2024 to 30th June 2024 Energy Price Cap.

The Energy Price Cap will come down by 12% on the 1st of April 2024. This reduction is already reflected in the Octopus 12-month fixed tariff plus the daily standing charge is slightly less.

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

We now know that the Energy Price Cap will fall by 12% on the 1st of April but if you want to look far ahead as July or October 2024 it is more a guess based on current world politics and demand but supply is establishing and there are plenty of reserves due to a mild winter.

As an illustration here are the current rates for both 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.

TO FIX OR NOT TO FIX?
Based on Energy Price Cap.
Electricity per kWh.
National Average Price
Gas per kWh
National Average Price.
Octopus 12 months fixed (Exit fee)
SOUTH WALES
26.85p6.25p
Loyal Octopus 12 months fixed.
(Exit fee)
SOUTH WALES
26.85p6.25p
Octopus Flexible Tariff. (1st January to 31 March 2023)
SOUTH WALES
28.71p7.57p
Octopus Flexible Tariff - (April to 30th June 2024 based on EPC)
SOUTH WALES
26.85p6.25p
Octopus Flexible Tariff - best guess (July to 30th September 2024)
NATIONAL AVERAGE
20.87p5.02p
Octopus Flexible Tariff - best guess (1st September to 31st December 2024)
NATIONAL AVERGAE
22.29p5.10p

Loyal Octopus 12-month fixed tariff and Octopus 12-month Fixed tariff.

Octopus Energy frequently changes the price of its tariffs, it last changed on the 23rd of February 2024.  As a result, both gas and electricty are cheaper than the January 2024 Energy Price Cap and the same as the April 2024 Energy Price Cap. You can swap tariffs at any time as there are no exit fees.

You will be paying less than the Energy Price Cap for your electricty and gas on both the Octopus Loyal 12-month fixed tariff and the Octopus 12 months fixed tariff until 31st March 2024. Then pay slightly less than the Energy Price Cap on 1st April. The unit rates are the same but the daily standing charge is slightly cheaper.

Cornwall Insight predictions prices are looking very positive for the summer with further reductions on the 1st July 2024. So if you grab a fixed just remember to review it in the summer.

Should you take an Octopus Fixed Tariff now?

Octopus Energy has revised the price of its Loyal 12-month fixed tariff under February 2024 v 3 and introduced the Octopus 12-month fixed tariff for new customers. The two fixed rates are currently the same price.

The reintroduction of the Octopus 12 months fixed for new customers is a very good sign. You can take this lower rate without any risk.  You just have to remember to check if a cheaper Octopus tariff becomes available and switch.

Points to consider:

  • You can take the 12% drop that is due to come into effect on 1st April 2024 now on the Octopus 12-month fixed tariff.
  • Prices are predicted to drop by a further 13% under the Energy Price Cap on 1st July so you need to check prices in the summer.
  • If you did nothing and didn’t choose to fix with Octopus and stayed on the standard variable you’d pay more until the 1st of April but then you’d be on roughly the same until the 1st of July 2024 when your rate would automatically drop anyway if predictions for the July Energy Price Cap predictions are correct.
  • Either way, you should keep an eye on energy deals are more will become available!!

If you prefer a fixed rate just remember to check once a month at least to see if a cheaper Octopus fixed rate is available and hop over to it. There are no exit fees, so it’s easily done you just have to remember to keep checking.  The sweet spot I think is going to be around July before prices start to rise slightly towards the autumn.

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 Loyas 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”.

How to find the rates of 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?

Both Octopus fixed tariffs are worth considering as you will pay less than the January Energy Price Cap for your gas if you fix the rate now. You don’t have to worry about paying more than the April 2024 Energy Price Cap as it’s already just below it thanks to a slight reduction in the daily standing charge. With wholesale energy prices falling it’s a great hop-on and hop-off tariff at the moment, in my opinion. With no exit fees, you can take the cheaper rates now and review it in early summer.

How much will i pay on energy price cap 2024

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

Gas and electricity according to Cornwall Insight will fall further in the summer of 2024. If you take the Octopus 12-month fixed tariff you will see these reductions in price now and you can swap to a cheaper tariff at any time. 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 Loyal Octopus 12-Month Fixed tariff, Octopus 12-Month Fixed tariff, Octopus Flexible Tariff and the Octopus Tracker Tariff.

Per kWhFlexible
(Energy Price Cap 1st April 2024 to 30th June 2024)
Octopus 12 months fixed tariff -
February 2024 v3
Loyal Octopus 12 months fixed tariff - February 2024 v3
Tracker Tariff - (December 2023 version 1.)

(Rate changes daily) 26th February 2024
Electricity24.51p 24.51p24.51p17.50p
Gas6.25p 6.25p6.25p 3.92p

These are the rates for South Wales. You can find the regional rates for the Energy Price Cap for 1st January 2024 on the Octopus website.

The daily standing on the Octopus Tracker tariff is also on a fixed term of 12 months and you can opt out at any time. You’d fix the daily standing charge at the January rate and not see the rise in April. Consider the Octopus tracker if you are reviewing your tariff. It is a great deal!

You can read a full review on my Octopus Energy comparison blog. I usually update it every 24 hours.

Updated 23rd February 2024