We’ll get in contact with each buyer this impacts, with a personalised breakdown of what this implies for you.
What’s the power value cap?
How a lot you are really charged will rely on how a lot power you employ; so those that use extra, pays extra.
The worth cap limits the quantity an power provider can cost for items of gasoline and electrical energy. It additionally impacts the standing cost which is the every day price per gasoline kind and is ready by Ofgem.
The worth 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 power payments by direct debit.
Abstract of adjustments
Solely acquired a couple of minutes? Watch this video by our founder, Greg Jackson.
- Ofgem (the power regulator) has introduced the power value cap will rise round 10% for a typical dwelling from October 1 to December 31, as a result of international price of power.
- As soon as once more, Octopus costs are decrease than the cap, and our prospects proceed to obtain the most affordable customary tariff standing expenses of any giant provider
- If you would like to guard your charges from future adjustments, we’re providing a 15 month mounted tariff with no exit charges. Evaluate the charges in your space right here.
- We’ll keep watch over your account stability, 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: if you happen to’re not paying by Direct Debit, you can save an extra £80 on common by setting one up with us.
In the event you’re struggling to pay we’ve got numerous help on supply.
What about Winter Gas Funds?
What extra help is on supply?
There’s a great deal of other ways we might help. Have a learn of our devoted help 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.
Under, we have included a breakdown of all Versatile Octopus charges and expenses by area and fee technique.
Versatile Octopus costs for purchasers who pay by Direct Debit
Versatile Octopus costs for purchasers who pay by different strategies (i.e customary credit score)
Versatile Octopus costs for Prepayment prospects
Why do costs fluctuate primarily based on location and fee technique?
It prices us extra to provide power to some areas relying on issues like proximity to turbines, price of sustaining native networks and extra.
The identical is true with totally different fee strategies – for instance, it prices suppliers extra to manage and handle accounts that do not pay by Direct Debit, so Ofgem elements that into their Worth Cap.
Managing your direct debit quantity
One of the simplest ways to know our instructed fee quantity is to have a look at your Steadiness Forecast. We constructed this useful device to indicate you precisely how a lot we anticipate you will spend on power over the following yr primarily based in your tariff costs and typical power consumption (which we work out primarily based on years of your meter studying information).
What if I believe Octopus’ fee suggestion is fallacious? You possibly can change your individual fee on-line and through our app. If you’re already in debt and attempt to cut back your direct debit we advocate you give us a name and we may give you a hand.
Desire a fast reminder of why we set your funds to a clean quantity yr spherical? Watch our fast explainer video:
Often Requested Questions:
Does the power value cap have an effect on me?
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In the event you’re on a variable tariff, like our Versatile Octopus, the Ofgem Worth Cap protects the worth you pay.
The worth cap particularly applies to variable tariffs as a result of they aren’t mounted in opposition to the volatility within the power markets. Completely different suppliers can refer to those tariffs in plenty of methods; customary variable tariff (SVT), non-fixed, and so on. At Octopus our variable power tariff is known as Versatile Octopus.
In the event you’d like to verify 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 take a look at the small print beneath your property deal with).
You possibly can learn extra concerning the power value 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 hard and fast tariff?
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Our Octopus 15M Mounted tariff is at the moment £1,656 per yr 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 won’t actually say whether or not it will be your best option for you; it is best to check charges in your space on-line and see if it will prevent cash.
I’m on a hard and fast tariff proper now, what occurs when it ends?
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In the event you’re on a hard and fast 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 upfront of your mounted tariff coming to an finish.
In the event you’d like to verify 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 take a look at the small print beneath your property deal with) or on any PDF power assertion. It’s normally on the second web page, close to the highest of the breakdown in your electrical energy and / or gasoline expenses for the interval.
How might I get power £80 cheaper by paying by Direct Debit?
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Our Versatile tariff may have barely totally different unit charges and standing expenses primarily based in your fee technique. The £80 isn’t a flat low cost for Direct Debit prospects (or a cost on non-Direct Debit prospects) – it’s the everyday financial savings a median dwelling might see over a yr on the cheaper Direct Debit dual-fuel charges.
In the event you change the way you pay, our system will choose that up and modify your charges routinely, so if you happen to don’t have a Direct Debit proper now, it’s tremendous simple to entry the most affordable costs. All it’s essential to 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 assume it is honest to make everybody cowl that additional price, so we do supply a less expensive charge 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 value I’ll pay for power?
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No: this determine just isn’t absolutely the most a buyer might pay.
In the event you’re affected by the worth cap, the safety you obtain is relative to how a lot power you employ.
Ofgem calculates the worth cap primarily based on the yearly utilization of a typical medium consumption dwelling (that is 2,700 kWh of electrical energy and 11,500 kWh gasoline per yr). 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 in opposition to every buyer’s precise utilization. Put merely: if you happen to use extra – or much less – power than that typical dwelling, your individual yearly power prices on a tariff priced on the most charges could also be greater – or decrease – than that £1,717 determine from Ofgem.
What are the precise most unit charges and standing expenses of the power value cap?
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The worth cap units a most charge for:
- Power items: the worth suppliers can cost variable tariff prospects per unit of gasoline and electrical energy you employ
- Day by day standing expenses: the worth 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 purchasers paying by direct debit – the unit charges (inc. VAT) can be:
Electrical:
Fuel:
Necessary: these are averaged figures from throughout all areas within the UK. As sure prices fluctuate, e.g. what transmission community charges we pay in an space, the precise most unit charge varies relying on area. There are different elements too: totally different most charges for Economic system 7 tariffs (which have a day and an evening value) and prepayment meters.
You possibly can see Ofgem’s figures on the worth cap standing expenses and unit charges right here.
