Misleading email from Octopus Energy

dosh37

Energy prices will rise from January to March

The email states:-

As a result of global gas prices, Ofgem (the energy regulator) has announced energy unit rates will rise from January 1 to March 31 2024.

This is completely wrong.

The Ofgem announcement only refers to an increase in the price cap i.e the maximum amount a supplier can charge per kWh.

It does not necessarily mean that prices will rise unless a supplier chooses to do so.

Ofgem does not set unit energy rates, It only sets the price cap.

matelodave

Its a bit nit-picking, but in the end, most suppliers will push their prices up to (or pretty close) to the energy cap so in reality they are setting the prices.

dosh37

Duh! I do realise that.

However I object to the way the email was worded - it is incorrect.

bristolleedsfan

dosh37 said:

Duh! I do realise that.

However I object to the way the email was worded - it is incorrect.

You are correct Fuse Energy are freezing unit rates until 31 March 2024

masonic

The price cap is determined using a formula, which is a function of the wholesale energy prices for forward delivery over the period. I do not think it is the case that Ofgem has changed this formula between October and now, so it would therefore follow that energy prices are increasing. The specific wording in the email is, however, quite sloppy.

njkmr

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

QrizB

njkmr said:

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

No, no and no, respectively.

masonic

njkmr said:

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

No, we have a national energy grid and no supplier can pipe only renewable energy to their customers. If they did, these customers would have power cuts when the wind wasn't blowing. All suppliers can do is offset the energy customers use through investment in generation from renewables, but that generation won't be synchronised with the times that their customers are using the most energy.

Spoonie_Turtle

njkmr said:

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

Fun fact: the suppliers who supply the greenest energy (I don't know the ins and outs, but Ofgem recognises them as deriving their electricity from fully renewable sources) have a permanent exemption from the price cap - their standard variable tariffs cost more than other suppliers'.

Qyburn

njkmr said:

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

Octopus deliver the same mix of renewable and fossil fuel as everyone else. The only way any other claim could be justified would be if by some magic they increase the percentage renewable each time they take on a new customer.

the_lunatic_is_in_my_head

njkmr said:

I thought all Octopus energy came from renewables?
Therefore nothing to do with price of gas or oil.
Just profiteering.

You can understand why some would feel this is correct, what else does the below mean other than all their energy comes from renewables? (I know what it means, save someone explaining )

https://octopus.energy/renewables/

In 2018, we committed to providing even greener energy - switching all our customers to 100% renewable electricity, at no additional cost. This is heaps more green than the 38.7% national average