Octopus 12 Month Fixed or Flexible tariff?
Choose the right Octopus Energy Tariff for 2024 / 2025.
Updated 28th December 2024
If you are an existing Octopus Energy customer or are thinking of switching to Octopus Energy you may be trying to decide between the Octopus Fixed and the Octopus Flexible tariff I can help.
I’ve been an Octopus Energy customer for six years and check their energy rates daily. The good news is you can now switch to an Octopus Energy 12-month fixed tariff that’s around 6.3% below the January 2025 Energy Price Cap but is that a good deal?
It can feel like a minefield especially if you are worried about being trapped paying too much for your energy. If you are anxious about making the wrong decision don’t panic. I am very geeky about Octopus tariffs and my review will give you all the information you need. It’ll hopefully help you make a decision that is right for you.
There are currently no exit fees on any Octopus Energy tariffs so you won’t get trapped paying too much if energy prices go down. That’s a big tick even before we get started!
Now is a good time to review your tariff and make a plan for winter as we head into 2025. Say goodbye to uncertainty and hello to confidence in managing your energy costs effectively. You have an Octopus super geek on your side.
Written by Sarah Chambers
Peace of mind – The Octopus 12 Months Fixed Tariff is around 6.3% less than the January 2025 Price Cap.
If you’d like to protect your Octopus tariff from future changes, Octopus offers a 12-month fixed tariff of around 6.3% below the Octopus Flexible tariff. (January 2025 Energy Price Cap) There are no exit fees so there’s no catch to this offer.
The Octopus 12-month fixed tariff changed towards the middle of December and went down slightly.
Whatever happens in the world be it politics, conflict or restricted energy supplies if you opt for the Octopus Fixed tariff the rate you pay per kWh and the standing charge will not change for 12 months unless you want it to. Plus the no-exit fee policy on the current Octopus fixed tariffs makes this tariff a safe bet for the next 12 months.
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 December v1 2024 tariff and it’s well worth considering if you prefer the assurance of a fixed energy deal.
- You’ll pay around 6.3% less than the Octopus Flexible Tariff (Energy Price Cap) on the Octopus 12 months fixed between the 1st of January and the 31st of March 2025.
- Wholesale energy prices are quite volatile at the moment. Ofgem has just announced a 1.2% increase on the Energy Price Cap from the 1st of January 2025. Some predictions warn of a further 1% increase on the 1st of April 2025 but it’s far too early to predict this far ahead. This prediction changes almost every week.
- The Octopus 12-month fixed will still be below the Energy Price Cap up until 30th June 2025 if predictions are correct. It’s too far ahead to guestimate any further.
New Octopus Energy customers.
In addition, as a new Octopus Energy customer, you can use a £50 switching offer. (That’s an instant 2.9% off the October Energy Price Cap regardless of the tariff you choose.)
- Approximately 6.3% below the January 2025 cap from the tariff itself,
- Plus the 2.9% from the £50 new customer switching credit.
- No exit fees apply.
I have heard energy prices may go down in 2025 what are the predictions compared to the Octopus 12-month fixed tariff?
With no exit fees, I don’t need to say anything else if you are considering the Octopus fixed tariff v the Octopus flexible tariff. Grab your Octopus rates and fix them. If prices drop switch to the cheaper version with a quick email. It is that simple, I’ve done it a few times.
Annual typical use prices Octopus Fixed v Octopus Flexible tariff.
On typical use, the Energy Price Cap in January 2025 is £1,738. This covers the period from 1st January 2025 to 31st March 2025.
Martin Lewis is already talking about a possible price increase in 2025 and is referring to the EDF Price Cap forecasting Service from the 23rd of December 2024. However, he is suggesting a fixed tariff is worth considering if it is no less than 2% below the January 2025 price cap.
The Octopus 12-month fixed tariff is well below the January 2025 Price Cap. I did a quote this afternoon and if you are only considering the fixed v flexible tariffs it makes sense to fix your rate.
No one has typical usage, so looking at the price per kWh and your energy needs is important.
What are energy prices expected to do in 2025?
No one can tell you what will happen in the energy market over the next few months. Some analysts anticipate a 1-3% increase in the Energy Price Cap but it is too early to tell. We will know more as we progress into the new year.
- If you are on the Octopus Flexible tariff as an existing customer you will now be paying around 6.3% more than the fixed tariff until 31st March 2025. (Based on typical use for a dual-fuel home)
- If you take the Octopus Fixed tariff based on these predictions (based on typical use for a dual-fuel home) you will pay 6.3% less than the Octopus Flexible tariff for 3 months starting on the 1st of January 2025 and you’ll continue to make a saving, if EDF predictions are correct, from 1st April to 30th June 2025.
This is why you may decide to take the Octopus 12-month fixed tariff now. You’ll lock in a lower rate if predictions are correct. If prices go down you’d contact Octopus and hop over to the cheaper rates. With no exit fees, you can do that very easily. (These prices are based on the typical use of dual fuel.) However, if you are an all-electric house it’s still worth it as most of the savings are on electricty anyway.
Advantages of switching to an Octopus Energy 12 months fixed tariff now;
- You’ll lock in a rate you can switch away from at any time with no exit fees.
- £50 credit when you switch using my referral link.
- 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 switching to an Octopus smart tariff, eg Octopus Tracker or Octopus Agile tariff.
As a new customer, you can switch to the Octopus Energy 12 Months Fixed tariff when you switch from your current supplier. The Octopus Flexible rates would cost you more until at least the spring. Predictions suggest you would pay more until at least the summer.
The Octopus 12-month fixed is around 6.3% less than the January 2025 Energy Price Cap and there’s a 4% discount on the daily standing charge set by Ofgem.
Octopus Energy 12 Month Fixed Tariff for both new and existing customers.
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 in the new year switch to the Octopus Flexible rate or a cheaper fixed if it becomes available.
Octopus no longer has tariffs exclusively for new customers. It is against enticing new customers with a lower rate to trap them. Equally, they don’t want to disadvantage loyal customers who want to stay with them.
Octopus commits to fair pricing for all customers and calls for a market focused on innovation, customer service, and efficiency, rather than ripping customers off with Del Boy pricing practices
On the Octopus 12 Months Fixed Tariff December v1 2024, the unit rate and standing charge are;
- Electricity – 22.76p per kWh with a standing charge of 62.06p per day
- Gas – 6.12p per kWh with a standing charge of 29.77p per day.
This quote is for South Wales, and prices vary slightly throughout the UK.
There are very few fixed energy tariffs with no exit fees or requirement to have a smart meter but the Octopus fixed tariff ticks both boxes.
Read my blog post – Compare Octopus Energy Tariffs 2024
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.
What happened to the Octopus 15-Month Fixed Tariff?
On the 1st of October 2024, Octopus withdrew the Octopus 15-month fixed tariff and replaced it with a 12-month fixed tariff that is even cheaper. Competitive and lower wholesale energy prices are making fixed tariffs more attractive
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.
As 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.
1st January 2025 to 31st March 2025 Energy Price Cap.
The Energy Price Cap will rise by 1.2% on the 1st of January 2025
The chart below shows the Octopus Flexible tariff (January 2025 Energy Price Cap) in comparison to the Octopus 12-month Fixed tariffs
If you look ahead to April 2025 there is a very loose prediction. It is just too early in my opinion to give this much weight.
As an illustration here are the current rates for the Octopus 12-month fixed tariffs, the Octopus Flexible tariff and predicted price changes in 2025. The figures below are from Cornwall Insight, Ofgem and the Octopus Energy website.
| Octopus Energy Tariff. | Time Period | Electricty price per kWh. | Gas price price per kWh |
|---|---|---|---|
| Octopus 12 months fixed January 2025 v1 South Wales | Now. | 23.23p | 6.37p |
| Loyal Octopus 12 months fixed - South Wales | Now | N/A | N/A |
| Octopus Flexible Tariff - South Wales | 1st October - 31st December 2024 | 24.49p | 6.45p |
| Octopus Flexible Tariff - South Wales | 1st January to 31st March 2025 | 24.85p | 6.54p |
Should you take an Octopus Fixed Tariff now?
Deciding if to fix your energy deal is a personal choice. I can’t see a downside to taking the Octopus 12 months fixed now especially if you won’t consider an Octopus smart tariff.
Here are some of the big benefits of a Fixed Octopus Energy tariff;
- Budget-friendly: If you need predictability and can’t afford to risk prices rising further in the winter the Octopus Fixed is a good choice.
- Risk threshold: Are you comfortable betting against the predicted energy price rises? If not, the Fixed Octopus tariff would restore stability to your household bills. There may be no point risking price rises in October if you can lock in your rates now with no exit fees. That’s the key, you can take a cheaper rate if one comes around at any time.
- Potential for Savings: The Flexible tariff changes every 3 months. If wholesale energy prices fall you can realistically predict you will save money in the next quarter. Cornwall Insight has recently, however, changed its prediction to show the energy price cap going up by around 1% on 1st January 2025.
Octopus Fixed rate with no exit fees – December v1 2024.
If you are only considering switching to the Octopus Flexible tariff or the Octopus 12-month fixed I think the fixed tariff makes sense. With no exit fees, you get to lock in your unit rate and standing charge for 12 months but can take a lower rate if one becomes available. You can’t however, hop in the tardis and go back in time and take the lower Octopus fixed tariff if prices go up.
It is competition and a reduction in wholesale energy prices that’s keeping the fixed rate down but I don’t know how long this will last. Let’s hope things change for the better.
What does Martin Lewis say about taking a fixed tariff now?
On Money Saving Export on Martin Lewis’ list of fixed tariffs worth considering the Octopus 12 months fixed is the only fixed tariff with zero exit fees. The December v1 isn’t listed as an option yet.
Now it’s become a cheaper 12 months fixed it’s even more attractive. With no exit fees, you can leave anytime but you get the security for 12 months with a modest 6.3% discount compared to the January 2025 price cap.
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 or £75 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.
Will there be a cheaper Octopus 12-month fixed?
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 January Price Cap.
At the moment wholesale energy prices are going up. The fact that the January 2025 Energy Price Cap is going up has no impact on the availability of cheaper fixed rates. 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 going up now it means that energy suppliers are forced to buy energy at a higher rate too. So we may see the Octopus 12-month fixed rates becoming less attractive as we head into winter.
However, if a cheaper Octopus Fixed does become available you can swap to it. With no exit fees you can do that so there is no risk if you lock in your fixed rate now.
Predictions are just that. They can change depending on politics and conflicts.
EDF Price Forecasting Service reports are the figures Martin Lewis uses to provide his current energy advice, but these are just predictions.
Ofgem is also looking at further redistributing standing charges into the unit rate. If you took a fixed you’d miss part of this because your terms and rates would be fixed for 12 months. But if tariffs with zero-standing chargers become available and you are a low-energy user you could save more money on one of these tariffs. As Octopus has no exit fees you could move over to this tariff without any penalties.
You don’t have to fix both energy types. With Octopus you can 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 could be changed at any time! Deals don’t hang around and the Octopus fixed changed twice in October and three times in November. If the Octopus fixed tariff 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 Tariff (January 2025 Price Cap) | Octopus 14 months Fixed Tariff 2025 - January v1 | Tracker Tariff December v 1 |
|
|---|---|---|---|
| Gas | 6.54p | 6.38p | 6.72p |
| Electricity | 24.85p | 23.95p | 26.18p |
| Rates per kWh | 1st January to 31st March 2025 | Fixed for 14 months. No exit fee. | Rate change daily - 18th January 2025 |
These are the unit rates for electricty and gas in South Wales.
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.
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