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Should you fix your Octopus Energy Tariff for 2024?
You can now take an Octopus Energy 12-month fixed tariff and swap it at any time with no penalties.
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.
Octopus 12 Months Fixed Tariff.
There is currently only one traditional Octopus 12 Months Fixed tariff this is open to both new and existing customers. This is the Octopus 12-month fixed April v 1 tariff.
There were two Octopus fixed tariffs but when Octopus lowered the price of its 12-monthly fixed rate in April it also withdrew the Loyal version of the tariff which was higher than the revised April version of the Octopus 12-month fixed rate which is open to anyone.
There are still no exit fees on the Octopus 12-month fixed rate tariff.
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 a little lower than the April 2024 Energy Price Cap and there’s a slight discount on the daily standing charge set by Ofgem.
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.
New customers can switch to the Octopus 12 months fixed or the Octopus Flexible tariff
On the Octopus 12 Months Fixed Tariff April v 1 2024 version 1 you will pay;
- Electricity – 23.77p per kWh with a standing charge of 61.19p per day
- Gas – 5.86p per kWh with a standing charge of 29.68p per day.
This quote is for South Wales, and prices vary slightly throughout the UK.
If you have a smart meter, look at the Octopus Tracker tariff and consider it along with Octopus Agile! Take a look at my complete guide to Octopus Tariffs.
What has happened to the Octopus Loyal 12-Months Fixed Tariff?
The Loyal Octopus 12-month fixed tariff was withdrawn when the rates on the Octopus 12-month fixed tariff went down in April. So now everyone gets the same lower rate.
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 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 fell by 12% on the 1st of April 2024. This reduction is 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
Predictions are that the Energy Price Cap will fall by 8% on 1st July 2024 but that could change over the next few weeks. If you want to look ahead to October or January 2025 it is more a guess the further ahead you look, 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) April v1 SOUTH WALES | 23.77p | 5.86p |
| Loyal Octopus 12 months fixed - SOUTH WALES | Withdrawn and now basic 12 months fixed is cheaper! | Withdrawn and now basic 12 months fixed is cheaper! |
| Octopus Flexible Tariff. (1st April to 30th June 2024) SOUTH WALES | 24.51p | 6.25p |
| Summer / Autumn 2024 Winter 2025 | Predictions. | |
| Octopus Flexible Tariff - best guess (July to 30th September 2024) NATIONAL AVERAGE | 22.43p | 5.38p |
| Octopus Flexible Tariff - best guess (1st September to 31st December 2024) NATIONAL AVERGAE | 23.81p | 5.61p |
| Octopus Flexible Tariff - best guess (1st January to 31st March 2025) NATIONAL AVERGAE | 24.06p | 5.65p |
Should you take an Octopus Fixed Tariff now?
Octopus Energy has revised its fixed price and introduced the Octopus 12-month fixed April v1. This Octopus 12-month fixed tariff is for both new customers and existing customers.
The Octopus Loyal 12-month fixed tariff has been withdrawn. It didn’t drop in price it has simply disappeared for now.
The fact that Octopus’s 12-month fixed keeps dropping in price is a 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:
- Prices are predicted to drop by a further 8% 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 June but then you’d pay less from the 1st of July 2024. However, predictions are showing a rise in September and January 2025.
- Only take an Octopus fixed rate if you know you’ll review prices in the summer! There isn’t a lot of difference between the Octopus 12-month fixed rates and the Energy Price Cap predictions for the winter but these are just predictions and if you can fix them at a cheaper rate why not?!
Predictions have changed and the goalposts are forever moving.
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.
On the 28th of March 2024, Cornwall Insight changed its predictions for Energy price caps for 2024/22025. The price drop in July is now 5 % less than previously predicted and the price rises in October 2024 are higher. This makes deciding when to opt for a fixed rather tricky BUT you can swap away to a cheaper deal if one becomes available.
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. On the Octopus 12 months fixed as an example, you would pay less for your electricty in January 2025 compared to the Energy Price Cap. These are, however, only predictions on the Energy Price Cap.
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”.
For now, the Loyal 12 months fixed has vanished but it may have a tariff pricing update. We will have to wait and see.
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 April Energy Price Cap. With wholesale energy prices falling it’s a great hop-on and hop-off tariff at the moment if you are prepared to keep an eye on prices. With no exit fees, you can take the cheaper rates now and review it in early summer.
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 but not as much as previously predicted. They were predicted to fall by 13% in July but now it is 8%.
In the summer you will use less energy and you may want to lock in the winter rates now as the Energy Price Cap predicted increases for October and January 2025 could change and go up further. If they don’t you could swap tariffs as there is no exit fee but it depends on how much you worry about energy prices for the winter.
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.
| Per kWh | Flexible (Energy Price Cap 1st April 2024 to 30th June 2024) | Octopus 12 months fixed tariff - April 2024 v1 | Tracker Tariff - (April 20233version 1.) (Rate changes daily) 25th April 2024 |
|---|---|---|---|
| Electricity | 24.51p | 23.77p | 20.15p |
| Gas | 6.25p | 5.86p | 4.68p |
These are the rates for South Wales. You can find the regional rates for the Energy Price Cap for 1st April 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 13th April 2024
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