Octopus Energy to pass on Autumn Budget savings to both variable AND fixed customers

MSE_Emily

Octopus Energy customers on fixed tariffs WILL see the proposed '£150 energy saving' announced in the Autumn Budget passed on to their bills, the provider has announced. MoneySavingExpert.com founder Martin Lewis has been lobbying the Government in recent weeks to ensure the savings aren't just applied to those on standard variable tariffs, but to all fixes too...

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Octopus Energy to pass on Autumn Budget savings to both variable AND fixed customers

Sea_Shell

It will interesting to find out how a "typical" saving of £150 will be passed on.

A reduction in everyone's tariff rate of Xp 
Or a "typical" reduction.


Eg, say it was 3p off per unit, flat, then high users save more, low users save less.

Or

Will the reduction for higher users be say only effectively a 2.5p reduction, and lower users 4p, so it equates to £150 saving 

MattMattMattUK

I would imagine for single rate customers it will be a flat unit rate reduction which will not be particularly interesting. What will be interesting is how they make the changes for ToU tariffs, their E7, EV, heat pump, storage heater, tracker, Agile, Flux etc. 

squirrelpie

Perhaps the simplest would just be to credit everybody's account with £150? No, that would be too easy.

Newbie_John

Well, they were planning to provided low standing charge tarriffs right? Here we go..

MattMattMattUK

squirrelpie said:

Perhaps the simplest would just be to credit everybody's account with £150? No, that would be too easy.

The costs are not attributed in that way so it would not really work. The costs are mostly on the unit rate, though a small amount is on the standing charge, so the simplest way is to remove those costs, not create a chunk of credit.

Bungle73

Surely other companies have to follow suit now?

Outfox I'm looking at you..........

Scot_39

If they are passing on these savings - why havent they - and why arent they passing on the rises in policy costs to those on fixes already announced ?

Like those in Oct and those to come on Jan 1st.

Scot_39

Bungle73 said:

Surely other companies have to follow suit now?

Outfox I'm looking at you..........

Many of Octopus tariffs are exit fee free - and when last checked MSE comparison table - lower discount than others with exit fees.

They know many will just switch if dont - as there is no penalty for breaking their fixes - so arguably just avoiding the hassle of xxx,xxx customers all switching penalty free at once.

This arguably more of a marketing stunt - than any significant financial change for them.

But like SP now offer flexi - there is a real risk that the pressure - arguably hypocritical pressure to pass on policy cuts but expecting firms to absorb other policy rises over a number of years - like the recent ones in cuurent Oct cap period and coming in the Jan cap - might well have a massive detrimental impact on the availability of traditional fixes in future.  With pass through of govt costs becoming more common.