Octopus Agile "The Energy Price Guarantee and Agile Octopus"

CanNeverThinkOfAUsername

Dear *****,

The Government has announced a 2 year Energy Price Guarantee that caps variable energy prices at £2,500 for a typical home, in addition to the £400 Energy Bill Support Scheme that will reduce monthly payments between October and March.

From October 1, your dynamic unit rates will be discounted whenever they are above the Energy Price Guarantee rates. You don’t need to do anything — this will be handled automatically.

Now, this is going to get complicated, so you might like to grab a cuppa before reading on…

On fixed term tariffs, the Energy Price Guarantee discounts unit rates above an average of 34p / kWh — the actual number varies in different areas — to bring them down to that price, but with a maximum discount of 17p / kWh (although that’s another average that varies by region).

Essentially, this means:

• If your dynamic unit rate is less than 34p / kWh — congrats, you’re getting a better price than most
• If your dynamic unit rate is 34-52p / kWh, it will be discounted to 34p / kWh automatically
• If your dynamic unit rate is above 52p / kWh, it will be discounted by 17p automatically — so 78p / kWh will be reduced to 61p / kWh

These discounts will apply from October 1, but you won’t see them just yet in the rates in your online account — we should have online prices showing the discount in the next week or so.

If your bill usually lands in the first few days in the month, you may find it’s a little later than usual — don’t worry, it’s still on its way.

We’ll also automatically reduce your October Direct Debit by £67 as part of the Energy Bill Support Scheme. This reduction will be matched with a £66 monthly credit from October, rising to £67 from December to March, paid directly to your energy account by the Government.

CanNeverThinkOfAUsername

I joined Agile on the 29th Aug 2022, so i *think* this means i have the 55p cap. So the max i will pay is 55p - 17p = 38p per unit of elec??

Mstty

CanNeverThinkOfAUsername said:

I joined Agile on the 29th Aug 2022, so i *think* this means i have the 55p cap. So the max i will pay is 55p - 17p = 38p per unit of elec??

I read it that way as well but try and get clarification.

If they are included previous tracker products will be good to be on though and probably the best deal out there.

SJMALBA

Mstty said:

CanNeverThinkOfAUsername said:

I joined Agile on the 29th Aug 2022, so i *think* this means i have the 55p cap. So the max i will pay is 55p - 17p = 38p per unit of elec??

I read it that way as well but try and get clarification.

If they are included previous tracker products will be good to be on though and probably the best deal out there.

Confirmed in Octopus email that Tracker will have EPG applied.

Planeteer

SJMALBA said:

Mstty said:

CanNeverThinkOfAUsername said:

I joined Agile on the 29th Aug 2022, so i *think* this means i have the 55p cap. So the max i will pay is 55p - 17p = 38p per unit of elec??

I read it that way as well but try and get clarification.

If they are included previous tracker products will be good to be on though and probably the best deal out there.

Confirmed in Octopus email that Tracker will have EPG applied.

Not  entirely. The EPG will be applied on a scale - only if the dynamic rate is between 34 and 52p. Above, it will only be discounted by 17p. If the rate go or stays significantly or consistently above 52, then SVT/EPG will be better off. So choice whether to continue with Tracker or go to SVT will depend on mid-term expectations for dynamic rates 

razord

I don't think it's very clear if the new EPG cap is replacing the old cap or not.

For example are those on the old 35p cap now essentially just moving to a ~34p cap, or is that old 35p cap being replaced by the EPG, and so prices may suddenly go up if the agile rate should be over ~52p.

SJMALBA

Planeteer said:

SJMALBA said:

Mstty said:

CanNeverThinkOfAUsername said:

I joined Agile on the 29th Aug 2022, so i *think* this means i have the 55p cap. So the max i will pay is 55p - 17p = 38p per unit of elec??

I read it that way as well but try and get clarification.

If they are included previous tracker products will be good to be on though and probably the best deal out there.

Confirmed in Octopus email that Tracker will have EPG applied.

Not  entirely. The EPG will be applied on a scale - only if the dynamic rate is between 34 and 52p. Above, it will only be discounted by 17p. If the rate go or stays significantly or consistently above 52, then SVT/EPG will be better off. So choice whether to continue with Tracker or go to SVT will depend on mid-term expectations for dynamic rates 

I simply meant that EPG is being applied to Tracker i.e. Tracker is not excluded.

However, there are now, as you suggest, questions about the status of Octopus' UR caps - do they still apply, or have they been replaced by EPG?

Magnitio

CanNeverThinkOfAUsername said:

Essentially, this means:

• If your dynamic unit rate is less than 34p / kWh — congrats, you’re getting a better price than most
• If your dynamic unit rate is 34-52p / kWh, it will be discounted to 34p / kWh automatically
• If your dynamic unit rate is above 52p / kWh, it will be discounted by 17p automatically — so 78p / kWh will be reduced to 61p / kWh

So if the price is 52p/kWh, you pay 34p. If the price is 52.01p, then you pay 35.01p. Seems a little odd.

Alnat1

I'm going to wish for a windy but sunny winter and a Russian revolution. That should sort it all out 

Magnitio

Alnat1 said:

I'm going to wish for a windy but sunny winter and a Russian revolution. That should sort it all out 

And some sticky plasters to put on a couple of leaky underwater gas pipes.

Chrysalis

My email definitely doesnt mention tracker, but I will assume they rushed it and didnt word it right as people on tracker saying they got the same email.

I just read the email and it confirms they have been sitting on the info for weeks, so they apologised.