We’ll be in contact with all our clients within the coming weeks, with a personalised breakdown of precisely what this implies for you.
What’s the vitality value cap?
The value cap limits the quantity an vitality provider can cost for items of fuel and electrical energy. It additionally impacts the standing cost which is the day by day value per gas sort and is ready by Ofgem.
The value cap is usually communicated as an annual determine primarily based on the ‘typical consumption’ of a dual-fuel family that pays for his or her vitality payments by direct debit.
How a lot you are truly charged will rely upon how a lot vitality you employ; so those that use extra, can pay extra.
Abstract of adjustments
- On the first July the Ofgem value cap will lower from £1,690 to £1,568 for a typical house.
- We’re slicing costs from July 1: round £122 a 12 months for a typical house.
- For over 3 years our default standing costs have been cheaper than every other massive provider, and can proceed to be so.
- In case you’d like to guard your charges from future adjustments, we’re providing a 12 month fastened tariff with no exit charges.
- We’ll keep watch over your account steadiness, and counsel a change to your funds if it seems to be such as you’re paying an excessive amount of or too little.
Good to know: should you’re not paying by Direct Debit, you possibly can save an additional £80 on common by setting one up with us.
In case you’re struggling to pay we’ve got plenty of assist on supply.
What extra assist is on supply?
In case you’re nervous about paying your payments proper now, head to our devoted assist weblog or give us a name.
You’ll discover detailed details about our tariffs, background information on the vitality disaster, and a hyperlink to our Monetary Assist kind, which directs you to other ways we might help you should you’re struggling to pay – together with a £30 million Monetary Hardship fund.
What vitality costs will I be paying?
Your vitality costs rely upon the place you reside and the way you select to pay.
Under, we have included a breakdown of all Versatile Octopus charges and costs by area and fee technique.
Why do costs range primarily based on location and fee technique?
It prices us extra to provide vitality to some areas relying on issues like proximity to mills, value of sustaining native networks and extra.
The identical is true with completely different fee 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 simplest ways to grasp our urged fee quantity is to take a look at your Stability Forecast. We constructed this helpful software to indicate you precisely how a lot we anticipate you will spend on vitality over the subsequent 12 months primarily based in your tariff costs and typical vitality consumption (which we work out primarily based on years of your meter studying information).
What if I believe Octopus’ fee suggestion is mistaken? You’ll be able to change your individual fee on-line and through our app. If you’re already in debt and attempt to scale back your direct debit we suggest you give us a name and we may give you a hand.
Need a fast reminder of why we set your funds to a clean quantity 12 months spherical? Watch our fast explainer video:
Regularly Requested Questions:
Does the vitality value cap have an effect on me?
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In case you’re on a variable tariff, like our Versatile Octopus, the Ofgem Worth Cap protects the value you pay.
The value cap particularly applies to variable tariffs as a result of they aren’t fastened in opposition to the volatility within the vitality markets. Totally different suppliers can refer to those tariffs in quite a lot of methods; customary variable tariff (SVT), non-fixed, and so on. At Octopus our variable vitality tariff is named Versatile Octopus.
In case you’d like to substantiate which tariff you are on, and particulars like your present costs and contract dates, you possibly can see them in your on-line account (scroll slightly method down and take a look at the main points under your property deal with).
You’ll be able to learn extra concerning the vitality value cap and whether or not it impacts you on Ofgem’s web site.
How might I get vitality £80 cheaper by paying by Direct Debit?
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Our Versatile tariff may have barely completely different unit charges and standing costs primarily based in your fee technique. The £80 isn’t a flat low cost for Direct Debit clients (or a cost on non-Direct Debit clients) – it’s the standard financial savings a median house might see over a 12 months on the cheaper Direct Debit dual-fuel charges.
In case you change the way you pay, our system will decide that up and modify your charges routinely, so should you don’t have a Direct Debit proper now, it’s tremendous simple to entry the most affordable costs. All you could do is ready up a Direct Debit on-line and we’ll do the remaining.
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 suppose it is honest to make everybody cowl that further value, so we do supply a less expensive price for many who select to pay by Direct Debit, which prices us much less to handle.
Is the £1,568 determine from Ofgem the utmost value I’ll pay for vitality?
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No: this determine will not be absolutely the most a buyer might pay.
In case you’re affected by the value cap, the safety you obtain is relative to how a lot vitality you employ.
Ofgem calculates the value cap primarily based on the yearly utilization of a typical medium consumption house (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 vitality suppliers to cost clients on variable tariffs.
This determine is utilized by suppliers to use the value caps safety in opposition to every buyer’s precise utilization. Put merely: should you use extra – or much less – vitality than that typical house, your individual yearly vitality prices on a tariff priced on the most charges could also be increased – or decrease – than that £1,568 determine from Ofgem.
What are the precise most unit charges and standing costs of the vitality value cap?
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The value cap units a most price for:
- Vitality items: the value suppliers can cost variable tariff clients per unit of fuel and electrical energy you employ
- Each day standing costs: the value suppliers can cost per day for ongoing prices, like paying the businesses who handle distribution networks, working prices, and so on.
Ofgem have shared that on common – for patrons paying by direct debit – the unit charges shall be:
Electrical:
- 22.36p / kWh unit
- 58.03 p / day standing cost
Gasoline:
- 5.48p* / kWh unit
- 29.36p / day standing cost
Necessary: these are averaged figures from throughout all areas within the UK. As sure prices range, e.g. what transmission community charges we pay in an space, the precise most unit price varies relying on area. There are different components too: completely different most charges for Economic system 7 tariffs (which have a day and an evening value) and prepayment meters.
You’ll be able to see Ofgem’s figures on the value cap standing costs and unit charges right here.
* rounded from 5.479p / kWh unit
I’m on a hard and fast tariff proper now, what occurs when it ends?
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In case you’re on a hard and fast tariff, the very first thing to know is that the value cap doesn’t have an effect on your present vitality contract.
We’ll at all times electronic mail you upfront of your fastened tariff coming to an finish.
In case you’d like to substantiate your present costs and contract dates, you possibly can see them in your on-line account (scroll slightly method down and take a look at the main points under your property deal with) or on any PDF vitality assertion. It’s normally on the second web page, close to the highest of the breakdown on your electrical energy and / or fuel costs for the interval.
