What is the energy price cap?
The price cap limits the amount an energy supplier can charge for units of gas and electricity. It also impacts the standing charge which is the daily cost per fuel type and is set by Ofgem.
The price cap is often communicated as an annual figure based on the ‘typical consumption’ of a dual-fuel household that pays for their energy bills by direct debit.
How much you're actually charged will depend on how much energy you use; so those who use more, will pay more.
Summary of changes
On the 1st July the Ofgem price cap will decrease from £1,690 to £1,568 for a typical home.
We’re cutting prices from July 1: around £122 a year for a typical home.
For over 3 years our default standing charges have been cheaper than any other large supplier, and will continue to be so.
If you’d like to protect your rates from future changes, we're offering a 12 month fixed tariff with no exit fees.
We’ll keep an eye on your account balance, and suggest a change to your payments if it looks like you’re paying too much or too little.
Good to know: if you're not paying by Direct Debit, you could save a further £80 on average by setting one up with us.
If you're struggling to pay we have lots of support on offer.
What additional support is on offer?
If you’re worried about paying your bills right now, head to our dedicated support blog or give us a call.
You’ll find detailed information about our tariffs, background info on the energy crisis, and a link to our Financial Support form, which directs you to different ways we can help you if you’re struggling to pay – including a £30 million Financial Hardship fund.
What energy prices will I be paying?
Your energy prices depend on where you live and how you choose to pay.
Below, we've included a breakdown of all Flexible Octopus rates and charges by region and payment method.
Flexible Octopus prices for customers who pay by Direct Debit. Download a PDF copy here.
Flexible Octopus prices for customers who pay by other methods (i.e standard credit). Download a PDF copy here.
Flexible Octopus prices for Prepayment customers. Download a PDF copy here.
Why do prices vary based on location and payment method?
It costs us more to supply energy to some areas depending on things like proximity to generators, cost of maintaining local networks and more.
The same is true with different payment methods – for example, it costs suppliers more to administer and manage accounts that don't pay by Direct Debit, so Ofgem factors that into their Price Cap.
Managing your direct debit amount
The best way to understand our suggested payment amount is to look at your Balance Forecast. We built this handy tool to show you exactly how much we expect you'll spend on energy over the next year based on your tariff prices and typical energy consumption (which we work out based on years of your meter reading data).
What if I think Octopus' payment suggestion is wrong? You can change your own payment online and via our app. If you are already in debt and try to reduce your direct debit we recommend you give us a call and we can give you a hand.
