Octopus Energy has burst onto the UK energy scene by offering 100% renewable energy and some really interesting tariffs. As well as the more ‘traditional’ fixed and variable energy tariffs, Octopus has also developed some really unique tariffs that you can’t get anywhere else on the market. Read on to learn more about all types of Octopus Energy Tariffs. Are they reasonably priced or will they cost you an arm and a leg in 2019?
Octopus Energy tariffs
Octopus Energy offers a range of different tariffs: from standard fixed and variable tariffs to really innovative ones that help you maximise your green energy usage while keeping your energy bills nice and cheap (just the way we like them). It also provides business tariffs and a tariff that’s specifically designed for electric vehicle drivers. Plus, all Octopus Energy tariffs use 100% renewable energy. Let’s take a look at a few of them.
- Octopus Fixed:
This is one of Octopus Energy’s most popular dual fuel tariffs. On this tariff, your unit rates and standing charges are fixed for 12 months, which makes it easier to calculate your monthly energy bill and keep on top of your spending. It is also one of its cheapest tariffs. Octopus claims it should work out as roughly £83 per month for an average household.
- Flexible Octopus:
You can get a Flexible Octopus tariff as either a dual fuel (electricity and gas) or electricity only tariff, depending on what works best for you. This is a variable tariff which means your unit rates and standing charges can rise or fall depending on wholesale energy prices.
This sounds a bit scary, but Octopus will always give you plenty of warning before changing your prices (at least 30 days’ notice), and it means you benefit from any drop in energy prices (yay!). Plus, if you find that you don’t like the uncertainty that comes with a variable tariff, you can change over to one of the Octopus fixed tariffs at any time.
- Supergreen Octopus:
This is the provider’s greenest tariff, so if you want to be as environmentally friendly as possible this is the one for you. As with all other Octopus tariffs, the electricity is 100% renewable and as an added bonus, Octopus carbon offsets all of your gas too. It’s not too pricey either. Octopus estimates that its Supergreen tariff will cost a typical household £87 a month. This is a fixed tariff meaning your unit rates and standing charges stay the same for a full year.
- Arsenal Green:
As Octopus is the official energy partner of Arsenal Football Club, it only seems fitting that it has a tariff named after them. The Arsenal Green tariff is similar to the Octopus Fixed tariff, giving you fixed unit rates and standing charges for 12 months.
On top of this, every month you will be entered into an Arsenal monthly prize draw. Currently you can win a signed Arsenal shirt, a signed football or a behind the scenes VIP Emirates stadium tour for two. If you are a big Arsenal fan, sign up for the Arsenal green tariff now!
- Octopus Tracker:
The Octopus Tracker tariff launched in 2017 and was the first tracker tariff in the UK. What is a tracker tariff? A tracker tariff simply means that the price you pay for energy changes on a day-by-day basis according to the wholesale market price. In other words, if one day the market price of energy is more than the day before, your unit rates will increase in line with this overall price rise. If it is less than the day before, your unit rates will decrease accordingly.
While the price you pay will rise when the market price increases, Octopus claims that this tariff usually works out cheaper than standard tariffs in the long run.
- Agile Octopus:
This is known as a time of use tariff. Its aim is to let customers make the most of cheap energy prices. How does it work?
With this tariff, customers have access to half-hourly energy prices based on the wholesale energy market price at the time. These prices are updated every day: at 4pm every day, customers are given a different unit rate for every half an hour of the next 24 hours. This allows them to maximise their energy usage when the prices are at the day’s cheapest, and minimise it when they are at their highest.
The tariff is designed to work with smart technology through IFTTT applets, which lets customers really optimise their energy usage and save money.
Agile Octopus has also introduced Plunge Pricing. Occasionally, energy prices drop below zero because more is generated than consumed. With the Agile Octopus Plunge Pricing system, Octopus will alert you when energy prices have dropped below zero and pay you to use energy at this time: You will get paid to use energy, crazy!
With a time of use tariff, you are vulnerable to drastic increases in energy prices. Don’t worry, Agile Octopus includes a Price Cap Protect that prevents your prices from going over a certain amount.
Octopus Energy EV tariffs
Octopus Energy has a tariff that is tailored to people who own and drive electric vehicles. This EV tariff is called Octopus Go and is similar to an economy 7 tariff: Octopus Go gives you a different peak and off-peak unit rate for electricity. The peak rate varies depending on where you live, but the off-peak rate is the same amazingly cheap 5p per kilowatt hour (kWh) for everyone. This means that during off-peak hours (00:30 - 04:30) people can charge their electric vehicles with super cheap electricity.
As well as its many domestic tariffs, Octopus Energy also offers two business tariffs: Octopus Fixed and Flexible Octopus. The Octopus fixed tariff has fixed unit rates and standing charges for either 12 or 24 months. The Flexible Octopus tariff has variable prices that allow you to benefit from drops in the wholesale market price. You do not need to sign a fixed term contract, which means you are free to switch tariffs or leave Octopus Energy altogether if you find it is not right for your business.
These tariffs can be adapted for small, medium and big corporations so there is something for all businesses.
Does Octopus Energy have exit fees?
No! Not one of the Octopus Energy tariffs has exit fees. This means that if you sign up for a tariff but find it is not working for you, you can leave whenever you want without paying cancellation fees. This is the case if you have been on the tariff for a whole year or just a few months, but you do need to give 28 days’ notice.
Octopus Energy tariffs 2019: the prices
The prices for all Octopus Energy tariffs, whether they are fixed or variable, vary depending on where you live in the UK. Prices can also change from one year to the next. To give you a rough idea of the price of Octopus Energy tariffs in 2019, we have calculated the average price of its Flexible Octopus April 2019 v1 dual fuel tariff for a 3 bedroom home in London with 3 occupants.
|Utility||Unit rate per kWh||Standing charge per kWh|
|Average annual spend: £1,020.70|
*all prices include VAT at 5%
In general, Octopus Energy tariffs are very reasonably priced, especially for green energy tariffs. The figure above comes in well below the UK energy price cap set by Ofgem, highlighting just how fair the price is.
Is Octopus Energy cheaper than British Gas?
To get an idea of where Octopus Energy’s prices sit on the UK market, let’s compare them to one of the UK’s Big Six suppliers, British Gas.
Above we have seen that the average price of one of Octopus Energy’s popular tariffs is £1020.70 a year. We calculated that the same 3 bedroom home in London with 3 occupants on the Britsh Gas Standard tariff would pay on average £1313.30 a year. That makes Octopus Energy £292.60 cheaper a year than British Gas!
This figure is only based on one tariff and one location in the UK, but it suggests that overall Octopus Energy is significantly cheaper than British Gas.
Is an Octopus Energy tariff right for you?
Octopus might be cheaper than British Gas, but it is not the cheapest supplier on the UK market. Tonik Energy, for example, offers 100% renewable energy tariffs for a lower price. All in all, Octopus Energy sits comfortably in the middle of the pack when it comes to pricing: its pricing is reasonable and cheaper than some - most notably the Big Six - but it is more expensive than others. As a result, Selectra awards Octopus 3/5 on price.
Octopus Energy: Customer review score
If paying as little as possible for energy is your biggest concern, Octopus Energy might not be the right supplier for you. However, what it lacks in terms of pricing, it definitely makes up for in customer service. If you want to pay a reasonable price while getting great customer service, Octopus Energy could be the answer. Head to our Octopus Energy reviews page to find out more.