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Octopus Energy announces new tariff £50 cheaper than April price cap

The new rates apply to the Octopus Flexible Tariff, which is being quoted £1,921 a year for the typical energy user – £50 cheaper than the price cap

Greg Jackson, Founder and CEO of Octopus Energy and Zoisa Walton
Greg Jackson, Founder and CEO of Octopus Energy and Zoisa Walton

Octopus Energy announced its standard tax rate would be £50 cheaper than April price limit – but only for existing customers.

The new tariff applies to the Octopus Flexible Tariff, although it is unlikely to ease the financial burden too much for struggling families as energy costs continue to rise.

Flexible Octopus is being quoted £1,921 a year for typical energy users, while the price cap will increased to £1,971 for direct debit customersup from current levels of £1,277.

The new Octopus rates also only apply to customers who joined the energy company before March 3, 2022, or if you struck a flat deal by April 2, 2022.

Meanwhile, the default tariff cost for new customers will be £1,969 – just £2 less than the price cap. The new Octopus Flexible Tariff will take effect from April 2.

How the energy bill crisis affects you

A price cap places a limit on how much a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year.

As it is not a limit on your total bill – as the name suggests – if you use more energy you will pay more or use less and you will pay less.

Worried about paying your energy bills this winter? Let us know: mirror.money.saving@mirror.co.uk

Currently, rising energy bills mean that no fixed-rate transaction on the open market can break through the price cap – leaving many more well-off households with standard variable rates.

This means that the usual advice about switching energy suppliers has been overturned during the cost of living crisis, due to skyrocketing wholesale gas prices.

The only exception is for some existing customers, who may find their energy supplier offers them a matching – or better – capped-price deal.

For example, earlier this month, E.on’s cheap fixed rate deal was pulled just a few hours after it was flagged by Martin Lewis.

The founder of MoneySavingExpert flagged the one-year fix E.on Next Online V11 to his 1.3 million followers on Twitterset at the same rate as the April 2022 price cap.

The Ukraine crisis It also means that energy prices are predicted to rise further later this year, with experts warning that we could see another 40% rise above the price cap in October.

This would bring the typical bill for an average energy user up to £2,900 per year or more.

Unsurprisingly, the majority of energy companies have raised their standard tax rates to the maximum allowed under the April price cap – including British Gas, E.on and Bulb.

Outfox the Market, Scottish Power, Shell Energy are also raising their prices to £1,971, while EDF Energy, Ovo and SSE are £1 cheaper at £1,970.

Utility Warehouse is £11 cheaper than the April price cap of £1,960.

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https://www.mirror.co.uk/money/octopus-energy-announces-new-tariff-26437445 Octopus Energy announces new tariff £50 cheaper than April price cap

Fry Electronics Team

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