Why are Octopus increasing their standing charge by almost 10%?

greenbee

My standing charge (Eastern, Agile) is staying the same.

mta999

I got this email from Octopus...

• Energy bills are coming down: Thanks to the Government removing certain levies and obligations, energy bills will fall from April 1. These cuts will save a typical home around £120 a year
• Standing charges: While other large suppliers are increasing electricity standing charges, Octopus is not. We are holding or reducing electricity standing charges in every single region.

Spoonie_Turtle

https://forums.moneysavingexpert.com/discussion/comment/81935873#Comment_81935873

What are they supposed to do when Ofgem increases the regional SCs? I haven't kept up with whether Octopus' SC for SVT is still a bit below what Ofgem sets for the price cap.

Scot_39

Ofgem set the guidelines for standing charges on variable (strictly standard variable rates) - suppliers set theirs on other tariffs.

Agile iirc havent be reviewed for a while - a pseudo periodically fixed equation or regional weighting factors / offsets iirc on unit costs as well.

But the cap is a cap - they dont have to follow it - but most on SVT do.

Octopus used to discount vs Ofgem about 2-4% iirc on their variable tariffs - maybe around £8-12pa iirc - haven't checked for a while.

The Ofgem regional cap SC and unit changes are tabled here for SVT - on average SC up c2.46p for electric single rate DD, down 6p for gas

But as above it's really very very regional, within that average for electric - some are up over 6p some are down over 4p (S & N Scotland respectively the first 2 I looked at).

It's definitely one to check - and not just rely on the media / cap announcement headlines - which are always the regional average figures.

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region/

In terms of total prices - there is around £35 ex vat (714-751) regional variation on gas (inc SC) and c£120 ex VAT inc SC (795-919) on electric

https://www.ofgem.gov.uk/sites/default/files/2026-02/16a-PDF-cap-tables.pdf

Previous regional cap tables can also be found here (nil kWh - effectively the SC, then iirc be total for m units + SC - and note the units allowance has changed now to reflect current cap tdcvs )

https://www.ofgem.gov.uk/energy-regulation/domestic-and-non-domestic/energy-pricing-rules/energy-price-cap/energy-price-cap-default-tariff-levels/

tfhnota

Also, if you are on a fix that is ending then that s/c may be lower than the variable s/c - mine has gone up but the lowered unit rates cancel that out (again, changing from a fix the new unit rate is only slightly lower than the old one), so overall despite the policy costs being removed I am only 50p a month better off (would have been much worse off if the policy costs had not been removed or I had not done the new fix just before prices went crazy). Given the crazy oil and gas prices, I am not complaining (for once) and I doubt if there will be any major reforms to the money printing aspect of s/c's until it all settles down again. I am buying some bits and pieces for a small DIY solar installation (off-grid probably) as and when the components turn up cheap, have a year on the fix so no great hurry and just an amusement rather than a great money saving enterprise.

UnsureAboutthis

https://forums.moneysavingexpert.com/discussion/comment/81935724#Comment_81935724

So, whats the solution?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81936380#Comment_81936380

What do you mean by "solution", what are you trying to solve?

EssexHebridean

https://forums.moneysavingexpert.com/discussion/comment/81936380#Comment_81936380

If you're not happy, then change supplier. Be aware though that there is a decent chance that you may then see an even higher SC! Depends if a principal is important enough to you to be willing to pay more for, probably.

bristolleedsfan

https://forums.moneysavingexpert.com/discussion/comment/81936749#Comment_81936749

Easy to find tariffs elsewhere with lower SC than Octopus.

Chrysalis

https://forums.moneysavingexpert.com/discussion/comment/81935816#Comment_81935816

Agreed, and for reference I am in a cheaper SC area. So would lose out, but still agree as its fairer on the consumer for a critical resource.

I got no comment on Octopus specifically though, as I havent observed or not if they actually have increased SC (remember each tariff is different), so a proper comparison is only on the same tariff.