Octopus Energy Tariffs 2020: Compare Prices and Switch

Octopus Energy has taken the energy world by storm. Since it was established in 2015, the supplier has enjoyed near-constant accolades from the industry and customers alike. Winning awards for its value or money and its customer service, they aim to offer renewable energy at budget-friendly prices. As their website states “We’re doing energy better — for you and for the environment”. But are Octopus’ energy tariffs really as affordable as we’ve been led to believe?

Octopus Energy Tariffs 2020

Octopus Energy fare well by virtually every metric against which you can measure an energy supplier. Their Trustpilot page shows over 90% positive reviews. They consistently win “best supplier” awards year after year. And they’re increasingly popular, picking up 30,000 customers a month on average. In this post, we’ll list and compare Octopus Energy’s tariffs directly to see which is the best value for money. This will allow you to ensure that you’ll get the best possible value for money by switching to this supplier.

Hopefully, we’ll be able to see if you could save a few squid by switching… And for that pun, you have our deepest apologies. Seriously, let’s get kraken!

Octopus Energy Tariffs and Prices

At first glance, Octopus has a fairly modest range of tariffs. On closer inspection, however, we can see that there are enough tariffs to cover all bases, without there being enough tariffs to bamboozle energy consumers. All told, Octopus has 6 energy tariffs. By contrast, Scottish Power (one of the biggest of the “Big 6” UK energy suppliers) has almost 40!

Octopus Energy’s website states that its customers save £222 on average when compared to similar tariffs offered by the “Big 6” energy suppliers. Here we’ll look at each tariffs unit rates and standing charges in order to show you which is the best fit for your home.

Flexible Octopus: Octopus Energy standard tariff

Every energy supplier has a standard default tariff. This is usually a variable rate tariff that offers customers flexibility, with no exit fees. However, this tariff is usually by far the most expensive, and can allow customers’ energy prices to skyrocket when their variable rate tariffs come to an end.

Fortunately, Octopus Energy’s “Flexible Octopus” tariff is eminently reasonable, and while it is indeed a little cheaper than its 12 month fixed rate tariff, the difference is actually surprisingly negligible.

Rates for this tariffs are described in the table below. These are inclusive of VAT and are based on a UK average. Your rates may vary depending on where in the country you live. Estimated monthly / annual costs are based on average energy consumption of 2,900 kWh of electricity per year and 12,000 kWh of gas per year.

Energy Cost Price
Electricity unit rate 16.0125p per kWh
Gas unit rate 2.856p per kWh
Electricity standing charge 20.643p per day
Gas standing charge 17.85p per day
  • Estimated monthly cost £78.96
  • Estimated annual cost £947.58

This is an estimated £98.31 less per year than the average “Big 6” tariff.

Octopus 12M Fixed tariff

Surprisingly, Octopus Energy has only one fixed rate tariff. This is the Octopus 12M Fixed tariff and is likely to be the cheapest option for most energy consumers. That said, it is only slightly cheaper than the standard variable rate tariff at present. So if your tariff should expire, you know that you won’t have lapsed onto a cripplingly expensive tariff.

However, given that the price of energy is likely to rise in 2021 with the wholesale price of oil and the economic fallout of Brexit, the gulf between this cheapest tariff and the “Flexible Octopus” may widen in the coming months.

Energy Cost Price
Electricity unit rate 15.9495p per kWh
Gas unit rate 2.814p per kWh
Electricity standing charge 20.643p per day
Gas standing charge 17.85p per day
  • Estimated monthly cost £78.39
  • Estimated annual cost £940.71

This is an estimated £88.81 less per year than the average “Big 6” fixed 12 month tariff.

Super Green Octopus

All of Octopus’ tariffs offer 100% renewable electricity. However, this tariff also provides natural gas that is 100% carbon-offset. This means that the carbon generated from sourcing the gas is offset by projects undertaken through their partner Renewable World. This non-profit organisation brings renewable energy to communities around the world.

Energy Cost Price
Electricity unit rate 15.9495p per kWh
Gas unit rate 2.982p per kWh
Electricity standing charge 20.643p per day
Gas standing charge 17.85p per day
  • Estimated monthly cost £80.07
  • Estimated annual cost £960.87

This an estimated £68.65 less per year than the average “Big 6” green tariff.

Octopus Energy prepayment tariffs

Octopus Energy does offer tariffs for prepayment meters. However, it does not advertise these, or present them when obtaining a quote. Instead, Octopus advises customers on prepayment meters to email prepayment@octopus.energy for a quote.

In order to obtain an accurate quote, they request that customers include as much of the following information as possible:

  • Your full address and postcode.
  • Whether you use a card and key to top up your meter, or whether you top up online / through an app.
  • Whether your electricity is Economy 7 or a standard single rate meter.
  • Your annual gas and electricity usage in kWh.
  • How much energy you use in the day / night (for Economy 7 prepayment meters).
  • Whether you consider yourself to have any vulnerabilities.

Octopus Energy Economy 7 tariffs

Octopus offers day and night rates on all of the tariffs mentioned above, for customers with Economy 7 meters. We have included the day and night rates for each tariff in the table below. Again, rates are based on UK averages. Yours may vary, depending on where in the country you live. Off-peak hours will also vary depending on where you live.

Tariff Name Electricity Day Rate (Per kWh) Electricity Night Rate (Per kWh)
Flexible Octopus 17.493p 10.6575p
Octopus 12M Fixed 17.5665p 10.5945p
Super Green Octopus 17.5665p 10.5945p

Octopus Energy innovative tariffs

In addition to the tariffs mentioned above, Octopus Energy also have several innovative tariffs. While some of these are in the Beta-phase, they may be of interest to savvy energy consumers who want more transparency from their energy bills or who want to know that they’re always paying the best rates on the market.

Please note that rates and standing charges are not advertised for these tariffs as they are only available to existing customers.

Agile Octopus

Agile Octopus gives customers access to half-hourly energy prices that are tied to wholesale prices and updated every day. Wholesale prices drop, so do customers’ bills. Especially those who use energy outside of peak times. Octopus Energy’s website states that over the past 12 months, a typical UK family would have saved £210 on Agile Octopus compared to the average Big 6 variable tariff. A further £120 can be saved by using more electricity outside of peak hours.

Customers can even benefit from plunge pricing, potentially getting free energy at times when more electricity is generated than consumed.

Octopus Tracker

Octopus Tracker is Britain’s first tariff that allows customers to follow the wholesale price of energy in real time. Perfect for those who want to better understand what goes into the cost of the energy they pay for. You also get daily updates for your energy forecast. Great for households that like to budget.

Octopus Go

Finally, Octopus Go is a tariff that’s built around the needs of electric vehicle drivers. This tariff allows customers to charge for less with energy costs of 5p per kWh between 00:30 – 04:30. This is over 50% cheaper than typical Economy 7 night time rates, and can mean that you pay as little as 1p per mile for your travel.

Octopus Energy Tariffs 2

Octopus Energy business tariffs

Octopus offer a range of business tariffs for different businesses. All of which offer 100% renewable electricity. They are capable of handling all kinds of business energy needs from microbusinesses to enterprise-level companies. They even have specific EV business tariffs, as well as energy tariffs for vertical farms and solar developers / installers.

Octopus Energy no standing charge tariff

Unfortunately, Octopus Energy does not have a tariff without any standing charges, However, these can be a false economy for many households anyway. Unless your home is unoccupied for 7 months a year, you could end up paying more on a tariff like this.

Octopus Energy tariffs compared: Which is the cheapest tariff?

Now we know the unit rates and standing charges for Octopus Energy’s tariffs. But which are the cheapest? We compare Octopus Energy’s 3 main tariffs below to illustrate which is the best value for money.

Tariff Name Estimated Monthly Cost Estimates Annual Cost
Flexible Octopus £78.96 £947.58
Octopus 12M Fixed £78.39 £940.71
Super Green Octopus £80.07 £960.87

As we can see, the Octopus 12M fixed is a shade cheaper for most energy consumers. Nonetheless, all of Octopus Energy’s tariffs are pretty far below the Ofgem Energy Price Cap, As of October 2020, this stands at £1,042 per year. The lowest it’s ever been since its inception in January 2019.

As we can see, there isn’t a whole lot of variation between prices, and all 3 represent excellent value for money.

Octopus Energy price changes in 2020

Unlike most energy suppliers, Octopus Energy did not need to adjust its fixed rate in line with the reduced energy cap in October 2020. As a supplier, Octopus Energy prides itself on helping customers to better understand the wholesale cost of energy and how it impacts on their tariffs. This is evident in tariffs like Agile Octopus and Octopus Tracker.

Octopus Energy exit fees

Although Octopus Energy has a fixed rate tariff, energy consumers who value their freedom will be delighted to learn that none of their tariffs carry an early exit fee. So you can change tariffs and suppliers at any time to stay ahead of the curve.

Get an Octopus Energy quote today

Think that Octopus Energy might be the supplier for you? We can match their tariffs to meet your household’s needs. So you can rest assured that you’re getting the best deal on the market. What’s more, we can even manage your switch from end-to-end. So you can enjoy Octopus Energy’s cheaper, greener energy completely hassle-free.

Want to know more?

Call us today on 0330 054 0017. We’re available from 9am to 7pm.

FAQ

How much does Octopus Energy charge per kWh?

Octopus Energy’s unit rate charges per kWh vary by tariff. They are listed below as follows:

  • Flexible Octopus- 15.9495p electricity. 2.856p gas.
  • Octopus 12M Fixed- 15.9495p electricity. 2.814p gas.
  • Super Green Octopus - 15.9495p electricity. 2.982p gas.

What is the Octopus Energy standing charge?

Standing charges are the same for all 3 tariffs. They are 20.643p per day for electricity, and 17.85p per day for gas.

Does Octopus Energy have an exit fee?

No. While Octopus Energy does have a fixed rate tariffs, unlike most of its kind it carries no early exit fee. None of Octopus Energy’s tariffs carry an exit fee at the time of writing.

Has Octopus Energy raised its prices in 2020?

Unlike most energy suppliers, Octopus Energy did not announce any energy price rises in 2020 in line with the newly reduced Energy Price Cap, which currently stands at £1,042 per year.

Redactor

Written by eleanor

Updated on 7 Jan, 2021

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