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

Scot_39

Exactly the nature of fixes - whether term or actual fixes - should be - sometimes you win, sometimes you loose.

Expecting as ML EM and others here expect its always the suppliers who loose - to pass on cuts but absorb increases - just risks as my post above the move to business style contracts with pass through for network and govt policy charges - as SP have with flexi.
In last five years those honouring fixes have been burnt by the likes of Offem SoLR in the past imposed around £50 per fuel over its 18m to 2 years duration. And in the last 2 caps alone - Oct and coming Jan - they and those on SVT -  have seen policy and network costs increase £62 +vat+overheads in just 3 months. 

Compared with say the £42 current annual EBIT allowance and you might just appreciate the risks these companies face from such large external cost changes being imposed on them.

Just out of interest, how quickly could those impacted - like @bristolleedsfan above - leave then rejoin agile on current terms  - if that would allow them to gain back the 10p daily ? 

If days or weeks - maybe if timed across a cold atmospheric block / still period when wind low for days and demand so rates high like saw last winter and could again this - like when Agile hit its cap sone hours some days.

Read 30d on Google ai - but then said 9m for tracker - is that correct ?

Bendo

Its 30 days for Agile. But they haven't updated the tariff so the standing charges are the same so nothing to gain in his case as he would rejoin at the same rates he's currently on. 

troubledme

I work for an Eco company and all companies like this will be closing in the New Year all the audits and oversight that the government set up are still coming in thick and fast yet with no income stream to support the remedial there is just no way that the companies will be able to survive Especially since there is no news on when the new funding the warm homeland will be released or how it will be accessed small businesses just can’t stay open. This will put pressure on insurance companies that are provided insurance back guarantees it will put pressure on manufacturers the skill trades that know how to do this will scatter thousands and thousands of jobs losses so homeowners will still lose out not to mention the counsellor wrote back to us saying the saving will actually be £59 not 150.

troubledme

If the ECO funding is collected from standing charges and we are getting money back, why on January are Ofgem putting them up….again!! 

Although biased as my job is at risk I just feel like they have told the country there’s a £150 saving yet we have an email from a councillor in Bassetlaw saying the saving is actually £59. 

I have many clients that were living in mouldy homes with no heating. An old lady that sat at home with coat, hat & scarf in winter. Now she has new heating and insulation and is happy. I have so many similar stories. We didn’t install any external wall insulation and this is where so many of the stories on tv show. 

I would love to know if they understand the implications of cutting funding with no release date for the next scheme. Who will end up paying for any work that needs to be fixed if the companies like one close. Us no doubt somehow.

manufacturers, merchants, accrediting bodies, energy companies, insurance companies, ECO companies, admin, installers and apprenticeships part way through courses will all face job losses

MattMattMattUK

troubledme said:

I work for an Eco company and all companies like this will be closing in the New Year all the audits and oversight that the government set up are still coming in thick and fast yet with no income stream to support the remedial there is just no way that the companies will be able to survive Especially since there is no news on when the new funding the warm homeland will be released or how it will be accessed small businesses just can’t stay open. This will put pressure on insurance companies that are provided insurance back guarantees it will put pressure on manufacturers the skill trades that know how to do this will scatter thousands and thousands of jobs losses so homeowners will still lose out not to mention the counsellor wrote back to us saying the saving will actually be £59 not 150.

troubledme said:

If the ECO funding is collected from standing charges and we are getting money back, why on January are Ofgem putting them up….again!! 

Although biased as my job is at risk I just feel like they have told the country there’s a £150 saving yet we have an email from a councillor in Bassetlaw saying the saving is actually £59. 

I have many clients that were living in mouldy homes with no heating. An old lady that sat at home with coat, hat & scarf in winter. Now she has new heating and insulation and is happy. I have so many similar stories. We didn’t install any external wall insulation and this is where so many of the stories on tv show. 

I would love to know if they understand the implications of cutting funding with no release date for the next scheme. Who will end up paying for any work that needs to be fixed if the companies like one close. Us no doubt somehow.

manufacturers, merchants, accrediting bodies, energy companies, insurance companies, ECO companies, admin, installers and apprenticeships part way through courses will all face job losses

The people who should pay for the work are the property owners, be that the landlord or resident owner, not other taxpayers/energy bill payers.

The funding schemes only covered a small proportion of the installations and upgrades done, or only paid a small percentage of the total, the vast majority of the supply chain will continue operating on the same or similar commercial basis that they have already been operating under. 

The £150 headline figure is for the "typical user", those who use more will save more, those who use less will save less. The standing charge and unit rate on the energy price cap change quarterly not annually, the costs will be removed from the bills, but there are other factors that influence the price as well, the Q2 2026 price change when this kicks in will likely see a 6-9% reduction over current rates, varying based on the assessment period and region.

QrizB

troubledme said:

If the ECO funding is collected from standing charges and we are getting money back, why on January are Ofgem putting them up….again!! 

To respond to this point in isolation, January's cap was announced before the budget. The prices you've quoted don't include any of the ECO scheme changes.

We don't yet know when the budget-related bill reductions will happen, or how they will be implemented.

wrf12345

Funding for the Local Grant, the new form of Eco4 Flex, was announced some months ago but it is date sensitive for different areas, where I live not available until 2027 but some areas are getting it immediately or next year.. Rather annoying as if I do any upgrades it will push the EPC into C, already being high D, and then not applicable.

bristolleedsfan

Scot_39 said:

Bungle73 said:

Surely other companies have to follow suit now?

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

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.

Scottish Power currently offer traditional 12 months fixed, "lock in your prices for a year", rather than part Flexi/Fix they were offering previously.

Scot_39

https://www.scottishpower.co.uk/flexi

The latest prices dated here was 1st Oct 2025 -  tge previous ones Apr and Jul - in line with cap changes.

So there must I guess have been some still current deals in place  - I didn't realise they had stopped offering them.

There probably not that popular because govt policy changes have largely been upwards.

The policy line in cap breakdown up 50% £79 come Jan in 21 months.  ( I know 21 months a funny period to quote - but its the point it hit 50% milestone  - for policy - from govts of both hues -  that surely  should be targeting 2% inflation in all its imposed costs - the same remit both have given to BofE).

Network costs have been changing for a while - not always upwards - but the trajectory over tge period of the caps has been - and Oct rise not tge first.  Certainly won't be last.  As Ofgem have made clear in latest two announcements- one costed, the latest 3 hvdc targetting new timescales to 2034 not 2039 not yet afaik.

And just last 2 caps  - network up £24 and policy up - £17+£21 = £62 in 3 months  
Compared to suppliers annual operating profit allowance (EBIT) of £42/44 in Oct / Jan caps. 

Potentially driving them further into financial trouble and risking further collapses.  12m are supplied by Ovo and Octopus - 2 known failing new Ofgem financial resilience checks.  At least one seeking new financing, and press reports 100s of job cuts in its recovery plan.

People who expect suppliers to absorb policy and network cost revisions, shouldn't really expect them to pass on savings.  Especially those who have been imposing those costs.

Why should be people on svt - who pay these new costs first - not also be tge first to benefit from the cuts ?
Or are we just expected to subsidise those on fixes - as of course there shortfall must be recovered ?

MWT

Scot_39 said:

Potentially driving them further into financial trouble and risking further collapses.  12m are supplied by Ovo and Octopus - 2 known failing new Ofgem financial resilience checks.

Octopus have already provided Ofgem with a credible plan to meet the target, I'd be a bit more worried about OVO as they appeared to need new investment to get to where they need to be...