Octopus Energy - Switching to new tariff?

boco803

Just a quick one …

As an existing Octopus customer on a fixed tariff for another month or so, I assume if I decided to switch now, the new rates will be effective immediately?

And according to those who've been keeping an eye on energy prices and what it could be in the future, is it worth switching to an 18 month deal?

I suppose even with the exit fees on the new tariff (none for my existing one), the potential savings in the next 10-12 months may offset those fees?

Thanks for any advice.

Ayr_Rage

There is likely to be an option to select a switch date in the future with most providers.

cannugec5

I’ve just switched to a new Octopus Fix, a little early as I was worried I would miss out.
They send you the Terms and Conditions to agree to, by email. When you agree, the new rate applies from the preceding midnight.
I had previously enquired about delaying the start of the new tariff but that was not an option.

MWT

Generally it has been possible to set your next fix to run from the end of your current fix as long as you are within 49 days of the end of the current fix.

I have no idea if it has changed recently, but there always used to be an email sent as you hit 49 days remaining with the invitation to re-fix…

boco803

Thanks for your replies.

With just over a month to go for mine, should I have already been approached by Octopus by now presenting the options I have?

I also have a couple of further questions:

1. Back in April 2026, the current fixed unit rates were reduced to account for the ~£150 government reduction. I've just noticed Octopus actually said this was worth around £130 for dual fuel customers? Does anyone know how they calculated their lower rates?

2. I assume the new tariff rates persented by Octopus are those that are non-reduced? Whilst at the same time, the compare it to your current lower rates? I guess this is the same for everyone else? Do they actually rollover any unused benefit from the April 2026 rate reductiosn onto your new tariff?

Maybe @cannugec5 may be able to confirm this element of signing up to a new tariff recently?

Thanks again.

jennifernil

Wehad a fix with Octopus that ended early August. When we were within the 49 days, I looked at what they were offering and then phoned them to ask whether the new fix would start from the end of the old one, and was assured that it would, and that was indeed what happened.

If in doubt, it is better to phone them.

They confirmed the result by e mail afterwards as well.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82150558#Comment_82150558

There never was a '£150 reduction…' there was a reduction in policy costs which was estimated to provide around £150 reduction for a typical dual fuel customer but higher users would save more, lower users would save less.

There is nothing to 'roll-over' and the reduction is already reflected in any new rates quoted.as it was not a time limited change.

Ildhund

@boco803 asked:

Back in April 2026, the current fixed unit rates were reduced to account for the ~£150 government reduction. I've just noticed Octopus actually said this was worth around £130 for dual fuel customers? Does anyone know how they calculated their lower rates?

They didn't; Ofgem did. The £150 > £130 discrepancy arose for two reasons: (a) the DESNZ estimated the reduction using figures from October 2025, but they changed a bit the following quarter, and (b) DESNZ took the estimated total of the reduced levies and divided by a guess at the number of households in GB. Ofgem have a different measure, the number of accounts, which is different. The reduction was applied to all unit rates (for suppliers who were liable to pay the levies) and amounted to (IIRC) 3.51p/kWh for electricity and 0.51p/kWh for gas including 5% VAT. Since suppliers no longer - for the time being - have to pay these levies, all rates quoted today are lower that they would have been had the levies not been reduced. Not as much lower, though, because the VAT rate is from 1 October 0% instead of 5% for electricity.

This was discussed in detail here at the time; a forum search should reveal the threads involved.

boco803

https://forums.moneysavingexpert.com/discussion/comment/82150745#Comment_82150745

Thanks - this is the key point which is clearer now!

reduction in policy costs which was estimated to provide around £150 reduction for a typical dual fuel customer

boco803

https://forums.moneysavingexpert.com/discussion/comment/82150751#Comment_82150751

Thanks for the detailed explanation!

So taking the electricity reduction and 0% VAT, if you're currently being quoted 26.00p per unit, without the policy rate reduction but with the VAT at 0%, it would have been 29.14p?

cannugec5

https://forums.moneysavingexpert.com/discussion/comment/82150558#Comment_82150558

When I recently signed up to the new fix with Octopus I was advised that the rates will reduce from October 1st inline with the reduction in VAT.

I did not receive any notification that my existing fix was within the 49 days prior to its end on 1st October.
I specifically asked if the new fix could start from the end of the old fix and was told no. The only way to do that was to wait and request the new fix at the end of September thereby risking an increase in the tariff. I decided it was not worth the risk and moved to the new fix 2 weeks early.