HELPFUL FAQS ABOUT RISING PRICES
What’s the worth improve?
This worth improve will have an effect on any buyer on our Versatile Octopus (variable) tariff, efficient from April 2.
If you’re on one in every of our Versatile Octopus tariffs, your unit charges (the quantity you pay for every kWh of gasoline or electrical energy you utilize), aren’t fastened, and might fluctuate based mostly on elements like longterm adjustments in our prices to purchase vitality.
How do I do know if I’m affected by this worth improve?
You’ll be able to test what tariff you’re on in your on-line account, however we will even electronic mail each affected buyer with a private projection of what this improve means on your vitality prices.
Does this imply you’re one of many costlier suppliers now?
Completely not; fairly the alternative. Our Versatile tariff has at all times been priced under the federal government’s Power Worth Cap, and whereas most different massive suppliers have elevated costs as excessive as they’re legally allowed to, with our Loyal Octopus assist, Versatile Octopus is ready £50 under the brand new cap degree.
How do you evaluate to different suppliers?
The opposite massive suppliers (British Gasoline, EDF, E.on, OVO, Scottish Energy, and Bulb) have all introduced April worth rises already, taking their costs as much as inside pennies of the Power Worth Cap: the authorized most they will cost their clients.
Our normal costs are barely decrease for brand spanking new clients, and current clients will save an extra £50 a yr in comparison with Worth Cap costs.
How does the Loyal Octopus assist work?
The assist robotically reduces electrical energy prices by £48 per yr in comparison with our normal tariff. By decreasing your standing cost, all Versatile Octopus clients obtain the identical assist. We’re the one massive vitality firm to do something like this. It’ll price us one other £50m over the following 6 months.
Solely my gasoline is on Versatile Octopus. Can I obtain the reward?
Our gasoline costs are nonetheless cheaper than some other massive provider. In case your electrical energy is on a hard and fast or sensible tariff, we’ve already priced your electrical energy as little as we presumably may (as if it consists of the Loyal Octopus assist). Nevertheless, ought to your present tariff expire and your electrical energy roll onto Versatile Octopus, you’ll see the assist in your new costs, so long as you have been an Octopus buyer for a minimum of 8 months.
In case your electrical energy is presently equipped by one other provider, you may swap to Versatile Octopus and robotically qualify for our Loyal Octopus assist as quickly as you have been an Octopus buyer for a minimum of 8 months.
I’m already struggling because of Covid, why have you ever elevated my costs additional?
We all know lots of people are having a tricky time proper now. For a very long time, we have sheltered clients from rises by chopping considerably into the small margin we normally placed on our tariffs (~5%, to cowl our enterprise prices). This has price us round £100m over winter.
We have already helped over 30,000 households with our Octopus Help fund, which right this moment we’re doubling to £5m to assist extra clients at this tough time.
For those who or somebody you recognize is combating payments, please do tell us.
How do I transfer to a hard and fast worth tariff?
You’ll be able to repair your costs at any time in a couple of clicks. For those who’re on Versatile Octopus and you’ve got not obtained one already, you may get an electronic mail very quickly with all the small print of this worth change clearly set out. There will be a personalised hyperlink within the electronic mail the place you may repair your costs at any time.
Are you utilizing the vitality disaster to cost clients extra and earn cash for shareholders?
We have by no means made a revenue, and with the measures introduced right this moment, we cannot be making one this yr both. However we have now obtained main investments and are extra environment friendly than different firms. We’re utilizing this to do every little thing we are able to to assist our current clients by means of the disaster.
Will I begin having to pay extra instantly?
We’ll proceed to honour your present unit costs till April 2. Over the approaching weeks, we’ll overview all accounts and if it’s essential regulate your funds, we’ll get in contact with a advice. You are at all times in charge of your funds, and in case you’d want to regulate your month-to-month fee now, you are able to do so at any time in your on-line account.
I’ve solely simply switched to you, why have you ever already elevated your costs?
For those who’ve not been with us lengthy, we are able to recognize this comes a bit out of the blue. However even after this improve Versatile Octopus remains to be very competitively priced: cheaper than our fastened tariffs, and £51 cheaper than the value cap for a typical dwelling.
For those who want, you can too repair your costs at any time, which is able to lock them in for 12 months. If you want to repair your costs now, comply with the hyperlink in our electronic mail setting out the small print of this worth change.
Why do renewable vitality costs improve when gasoline costs rise?
The UK vitality market works like this as a result of the grid at all times has to steadiness: the UK’s vitality wants (or ‘demand’) must match with an equal quantity of energy ‘provide’.
Nationwide Grid’s fixed job is to name on many several types of energy: more and more inexperienced wind, photo voltaic and hydro; but in addition together with gasoline, nuclear and even coal, to maintain issues in steadiness. As a result of all vitality turbines are filling the identical necessary operate on this approach, the very best worth finally ends up setting the wholesale market worth. So when gasoline costs are excessive, electrical energy costs from all sources are too.
That is outdated and we’re pushing for change however, for now, it’s simply the best way issues work.
What’s occurring with the Authorities’s £200 vitality invoice rebate?
We count on this to be a one-off credit score to your account in October, however are discussing particulars with the federal government. We’ll let you recognize as soon as it’s finalised.
I’m on one in every of your Fastened tariffs, am I affected?
No. On a hard and fast tariff you’re protected towards future wholesale worth rises. As a result of we purchase your vitality up-front, your prices per unit don’t change in the course of the fastened interval.
I need to take my enterprise elsewhere, will you penalise me for leaving?
In no way – you are on a Versatile tariff with no exit charges.
And we perceive. No-one desires to pay extra for his or her vitality than they should, and that’s a precept we use to set our costs at a good degree. Nevertheless, altering wholesale costs are affecting all suppliers within the trade, not simply ourselves.
All the opposite massive suppliers have already introduced bigger rises from April. Because of this, we predict it is necessary to have all the proper and related data when different suppliers.
Because the wholesale price determines vitality costs throughout the entire trade, we would suggest evaluating the unit charges and standing prices of any offers you have a look at rigorously.
After all in case you nonetheless want to swap away, we utterly perceive, and need you one of the best of luck sooner or later.
