Millions of households across Scotland and the rest of the UK are bracing themselves for the upcoming energy price hikes which are set to come into effect at the start of next month.
Ofgem, the energy regulator, announced in February a 54% rise in the price cap which could see average users on a standard tariff see their annual bills soar by £693 to £1,971 from April 1.
Deals have been thin on the ground with comparison sites unable to offer anything which could offset the eye-watering increase, however, Octopus Energy customers will be able to save £50 annually through a new loyalty tariff, reports Chronicle Live.
Octopus is currently the only energy firm offering to undercut the price cap.
New and existing Octopus Energy customers on a Standard Variable Tariff will get £2 off the price cap, so they will pay an average of £1,969 a year rather than the £1,971 that's predicted through the Ofgem increase of 54%.
Loyal Octopus customers will receive an additional £48 rebate applied via their electricity charges which is automatically calculated and applied every month.
That means they will pay £1,921 a year on average and £50 less than the price cap from April.
Octopus reportedly said the discount is a temporary measure to help struggling households, and also announced it is doubling its Octopus Assist fund to £5m to help more customers who need financial support to pay their bills.
The fund works as a grant for the most hard-up families, who can claim between £50 and £500.
On average, most have received £100 with some 30,000 customers receiving support from the fund since it launched in November 2021.
There's no deadline to apply, but it is a good idea to make a claim if you think you're eligible as soon as possible.
How do I get this Octopus reduced tariff?
If you are an Octopus customer, you can check which tariff you're on in your online account.
You don't need to do anything if you're already on the flexible tariff with the provider - the lower price will kick in automatically from April 2.
If you're on a fixed tariff you won't be impacted by the change as your price is locked in for your deal period, however, once your deal ends, you should be moved on to the Flexible Octopus, so you'll still be paying under the price cap.
New customers who switch to Octopus can choose its Flexible tariff to pay less than the price cap, and will automatically qualify for the Loyal Octopus support.
If you are affected, you will be sent an email from the supplier explaining what the cost difference means to your bills.
Octopus said it is contacting customers over the next few days.
What is the energy price cap?
The energy price cap sets the maximum figure that a customer can be charged on a variable dual-fuel rate.
It is set by Ofgem and typically changes twice a year - with the next increase after April due in October.
Energy companies can charge up to this price, but not more - and with gas prices rocketing, exacerbated by the situation in Ukraine, most providers are expected to charge customers the full amount.
The price cap refers to the cost per unit and the daily standing charge you pay, so your actual bill will still always depend on how much energy you use.
Use more than average and you will pay more - use less and you will pay less.
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