We’ll get in contact with each buyer this impacts, with a personalised breakdown of what this implies for you.
What’s the power worth cap?
How a lot you are truly charged will rely on how a lot power you employ; so those that use extra, can pay extra.
The value cap limits the quantity an power provider can cost for models of fuel and electrical energy. It additionally impacts the standing cost which is the each day price per gas sort and is ready by Ofgem.
The value cap is usually communicated as an annual determine based mostly on the ‘typical consumption’ of a dual-fuel family that pays for his or her power payments by direct debit.
Abstract of modifications
Solely bought a couple of minutes? Watch this video by our founder, Greg Jackson.
- Ofgem (the power regulator) has introduced the power worth cap will rise round 10% for a typical dwelling from October 1 to December 31, as a result of world price of power.
- As soon as once more, Octopus costs are decrease than the cap, and our prospects proceed to obtain the most affordable normal tariff standing fees of any giant provider
- If you would like to guard your charges from future modifications, we’re providing a 15 month fastened tariff with no exit charges. Examine the charges to your space right here.
- We’ll control your account stability, and recommend a change to your funds if it appears to be like such as you’re paying an excessive amount of or too little.
Good to know: in the event you’re not paying by Direct Debit, you could possibly save an extra £80 on common by setting one up with us.
For those who’re struggling to pay we’ve got a number of assist on supply.
What about Winter Gas Funds?
What extra assist is on supply?
There’s a great deal of other ways we will help. Have a learn of our devoted assist weblog, and if something is unclear simply get in contact.
What power costs will I be paying?
Your power costs rely on the place you reside and the way you select to pay.
Beneath, we have included a breakdown of all Versatile Octopus charges and fees by area and cost technique.
Versatile Octopus costs for purchasers who pay by Direct Debit
Versatile Octopus costs for purchasers who pay by different strategies (i.e normal credit score)
Versatile Octopus costs for Prepayment prospects
Why do costs differ based mostly on location and cost technique?
It prices us extra to provide power to some areas relying on issues like proximity to mills, price of sustaining native networks and extra.
The identical is true with totally different cost strategies – for instance, it prices suppliers extra to manage and handle accounts that do not pay by Direct Debit, so Ofgem components that into their Worth Cap.
Managing your direct debit quantity
One of the best ways to grasp our recommended cost quantity is to take a look at your Steadiness Forecast. We constructed this helpful instrument to point out you precisely how a lot we count on you will spend on power over the subsequent 12 months based mostly in your tariff costs and typical power consumption (which we work out based mostly on years of your meter studying knowledge).
What if I believe Octopus’ cost suggestion is fallacious? You may change your personal cost on-line and by way of our app. If you’re already in debt and attempt to cut back your direct debit we suggest you give us a name and we can provide you a hand.
Need a fast reminder of why we set your funds to a easy quantity 12 months spherical? Watch our fast explainer video:
Incessantly Requested Questions:
Does the power worth cap have an effect on me?
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For those who’re on a variable tariff, like our Versatile Octopus, the Ofgem Worth Cap protects the worth you pay.
The value cap particularly applies to variable tariffs as a result of they aren’t fastened towards the volatility within the power markets. Completely different suppliers can refer to those tariffs in various methods; normal variable tariff (SVT), non-fixed, and so forth. At Octopus our variable power tariff is named Versatile Octopus.
For those who’d like to substantiate which tariff you are on, and particulars like your present costs and contract dates, you’ll be able to see them in your on-line account (scroll just a little manner down and have a look at the main points under your property deal with).
You may learn extra in regards to the power worth cap and whether or not it impacts you on Ofgem’s web site.
I am on a versatile tariff proper now, ought to I select a set tariff?
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Our Octopus 15M Fastened tariff is at the moment £1,656 per 12 months for a typical dwelling, and has no exit charges. This implies if costs proceed to fall, you’ll be able to merely select one other tariff in your on-line account.
We will not actually say whether or not it will be the only option for you; it is best to check charges to your space on-line and see if it will prevent cash.
I’m on a set tariff proper now, what occurs when it ends?
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For those who’re on a set tariff, the very first thing to know is that the worth cap doesn’t have an effect on your present power contract.
We’ll all the time electronic mail you prematurely of your fastened tariff coming to an finish.
For those who’d like to substantiate your present costs and contract dates, you’ll be able to see them in your on-line account (scroll just a little manner down and have a look at the main points under your property deal with) or on any PDF power assertion. It’s often on the second web page, close to the highest of the breakdown to your electrical energy and / or fuel fees for the interval.
How may I get power £80 cheaper by paying by Direct Debit?
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Our Versatile tariff can have barely totally different unit charges and standing fees based mostly in your cost technique. The £80 isn’t a flat low cost for Direct Debit prospects (or a cost on non-Direct Debit prospects) – it’s the standard financial savings a median dwelling may see over a 12 months on the cheaper Direct Debit dual-fuel charges.
For those who change the way you pay, our system will decide that up and alter your charges mechanically, so in the event you don’t have a Direct Debit proper now, it’s tremendous straightforward to entry the most affordable costs. All you’ll want to do is ready up a Direct Debit on-line and we’ll do the remainder.
Why are tariffs typically cheaper if I pay by Direct Debit?
Not having a Direct Debit prices us much more in admin.
We do not assume it is honest to make everybody cowl that further price, so we do supply a less expensive fee for individuals who select to pay by Direct Debit, which prices us much less to handle.
Is the £1,717 determine from Ofgem the utmost worth I’ll pay for power?
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No: this determine shouldn’t be absolutely the most a buyer may pay.
For those who’re affected by the worth cap, the safety you obtain is relative to how a lot power you employ.
Ofgem calculates the worth cap based mostly on the yearly utilization of a typical medium consumption dwelling (that is 2,700 kWh of electrical energy and 11,500 kWh fuel per 12 months). It represents the utmost quantity Ofgem considers honest for power suppliers to cost prospects on variable tariffs.
This determine is utilized by suppliers to use the worth caps safety towards every buyer’s precise utilization. Put merely: in the event you use extra – or much less – power than that typical dwelling, your personal yearly power prices on a tariff priced on the most charges could also be increased – or decrease – than that £1,717 determine from Ofgem.
What are the precise most unit charges and standing fees of the power worth cap?
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The value cap units a most fee for:
- Vitality models: the worth suppliers can cost variable tariff prospects per unit of fuel and electrical energy you employ
- Day by day standing fees: the worth suppliers can cost per day for ongoing prices, like paying the businesses who handle distribution networks, working prices, and so forth.
Ofgem have shared that on common – for purchasers paying by direct debit – the unit charges (inc. VAT) might be:
Electrical:
Fuel:
Vital: these are averaged figures from throughout all areas within the UK. As sure prices differ, e.g. what transmission community charges we pay in an space, the precise most unit fee varies relying on area. There are different components too: totally different most charges for Economic system 7 tariffs (which have a day and an evening worth) and prepayment meters.
You may see Ofgem’s figures on the worth cap standing fees and unit charges right here.
