Octopus Energy customers could save themselves up to £50 per year.
The energy providers are offering a new loyalty tariff, and while it is only £50 a year lower than the new energy price cap Octopus is currently the only provider offering to undercut the cap, reports Chronicle Live. The price cap, which is set to kick in on April 1, will see most household bills rise by hundreds of pounds each year. Many families will be struggling to make ends meet so every saving will count.
Every Octopus customer - existing or new - on a Standard Variable Tariff will get £2 off the price cap, so they'll pay an average of £1,969 a year rather than the £1,971 that's to come. Then loyal Octopus customers will get an additional £48 rebate applied via their electricity charges which is automatically calculated and applied every month.
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That means they'll pay £1,921 a year on average and £50 less than the price cap from April 2. The energy price cap sets the maximum figure that a customer can be charged on a variable dual-fuel rate.
It's set by Ofgem and typically changes twice a year - with the next increase in price coming on April 1. Energy companies can charge up to this price, but not more - and with gas prices rocketing, most providers are charging 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'll pay more, use less and you'll pay less.
Octopus has 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 it most. The fund works as a grant for the most hard-up families, who can claim between £50 and £500.
On average, most have been sent £100, and 30,000 customers have been helped by the fund since its launch 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 in case the money runs out.
Other energy firms have been launching flash sales offering cheap fixed deals, but these have disappeared within hours after huge demand.
How do I get Octopus' cheaper rate?
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.
But 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 has said customers will hear from it over the next few days.
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