Gas & Electricity

[Two Gun Bob]

They introduced £75 exit penalties on new gas/electric contracts a couple of weeks ago.

Octopus Energy FAQs

Why do some fixed tariffs have exit fees?

octopus.energy

Think it's really nice they took time out to explain to their customer base the reason behind their unexpected fees.
Volitility indeed:

 

[hampshireblue]

There's a COBRA meeting this afternoon looking at the effects of the war. It feels as if there is a 3-6 moht window before prices rise considerably. There has been much criticism about how electricity prices are based on the cost of gas which is the highest component of the multitude of energy sources thta go towards electricity production.

I hope they look very carefully at using that time effectively to decide how the balance can be changed to allow electricity prices to be based on an average of the methods that go towards it's production, not the highest. It can't be that difficult as every/most other countries don't employ our method of pricing so there are example out there that do it better and cheaper.

PS. Some bloke on Tom Swarbick show on LBC has just suggested exactly the same ;-)

 

[Blue Maverick]

Just doing the maths on whether to go for a fix on the gas with Octopus if I do compared to the rate I was on with our worst month our bill would go up £40 a month! I’m just hoping by the time our deal runs out in November there maybe some light at the end of the tunnel, otherwise it will be like 4 years ago wrapping up in blankets.

 

[BigJoe#1]

So when Labour proclaimed they were going to reduce our Energy bills by £117;00 a (or lets just call it £10 a month) Were they in fact speaking untruths? Because in actual fact it will be by a maximum of £10.00 a month for three months and then it will increase by probably more than £10 month, so in reality over the year we won't see any annual decrease at all. In fact we will probably see an overall increase... just think they should stop promoting untruths, now that they know it is extremely unlikely to materialise.

 

[denislawsbackheel]

You write gibberish!

 

[Blue Maverick]

So when Labour proclaimed they were going to reduce our Energy bills by £117;00 a (or lets just call it £10 a month) Were they in fact speaking untruths? Because in actual fact it will be by a maximum of £10.00 a month for three months and then it will increase by probably more than £10 month, so in reality over the year we won't see any annual decrease at all. In fact we will probably see an overall increase... just think they should stop promoting untruths, now that they know it is extremely unlikely to materialise.

It’s all a lie anyway pal, we are now into spring summer so everyone’s bills will drop due to no gas use, ours will go from a peak of £130 in winter to about £15 in summer! What they need to do is fuck off the standing charges and stick it on the unit rate but you know they won’t as it gives their mates free money. We will be saving like mad for next winter and buying a bit more wood for our wood burner as I expect process to sky rocket, if the war end soon it might jit be too bad but if it drags into summer and they gas is bought in advance thise costs will be passed on in winter it will be like 2022 again but I can’t see them bailing everyone out again.

 

[Blue Maverick]

Bloody hell Octopus EV tariffs yesterday was 5p off peak it’s now 8p, less than 24 hours and it’s gone up 70%! This is not going to end well.

 

[CWAC blue]

So when Labour proclaimed they were going to reduce our Energy bills by £117;00 a (or lets just call it £10 a month) Were they in fact speaking untruths? Because in actual fact it will be by a maximum of £10.00 a month for three months and then it will increase by probably more than £10 month, so in reality over the year we won't see any annual decrease at all. In fact we will probably see an overall increase... just think they should stop promoting untruths, now that they know it is extremely unlikely to materialise.

Just moved the green levy onto general taxation we are still paying it.

 

[hampshireblue]

So when Labour proclaimed they were going to reduce our Energy bills by £117;00 a (or lets just call it £10 a month) Were they in fact speaking untruths? Because in actual fact it will be by a maximum of £10.00 a month for three months and then it will increase by probably more than £10 month, so in reality over the year we won't see any annual decrease at all. In fact we will probably see an overall increase... just think they should stop promoting untruths, now that they know it is extremely unlikely to materialise.

I think you're getting a bit mixed up with what charges are being reduced and who is responsible for what. Let me help you to understand. A simple search reveals the following regarding changes that come into place next week:

Key Changes to Your Bill
The reduction is achieved by shifting certain policy costs from energy bills to general taxation:
GOV.UK +4

• Ending the ECO Scheme: Funding for the Energy Company Obligation (ECO) scheme, which was previously added to bills, will end on 31 March 2026.
• Reducing Renewables Obligation (RO) Costs: The government is removing 75% of the costs for the Renewables Obligation scheme from household bills, funding them through general taxation instead.
• Lower Standing Charges: A portion of these changes involves removing Warm Home Discount funding from standing charges, which is expected to lower the fixed daily cost of having an energy supply by roughly £39 a year

So the above are the government imposed charges that are due to be removed or reduced from next week. That makes up the £117 you refer to. However those charges are simply being moved onto general taxation so are being levied in a different way.

Then we have the price cap that the regulator determines for 3 month periods and which the government has no direct control over. That will fall for the next 3 months. However, the way it is reported, for some reason, is always for what it means annually. So when the media say it will reduce the average bill by, say, £300 that is over the course of a year so that figure can be divided by 4, so in this case the reduction is £75 assuming you are not on a fixed tariff and that you use the average amount. Remember all of the figures are an average and the best way to save money is to actually use a bit less.

Of course the price cap only applies to those that are on a variable tariff. It is down to individual suppliers if they decide to pass on any savings when the cap falls. Some do, some don't.

It is a common trait with some posters that they seem to blame the government for absolutely everything when it is actually the way an open market operates (not always in the most efficient manner but that's down to the regulator).

I hope this helps you to understand how your bills are constructed and that you can see which parts are government controlled and which are not.

 

[hampshireblue]

It’s all a lie anyway pal, we are now into spring summer so everyone’s bills will drop due to no gas use, ours will go from a peak of £130 in winter to about £15 in summer! What they need to do is fuck off the standing charges and stick it on the unit rate but you know they won’t as it gives their mates free money. We will be saving like mad for next winter and buying a bit more wood for our wood burner as I expect process to sky rocket, if the war end soon it might jit be too bad but if it drags into summer and they gas is bought in advance thise costs will be passed on in winter it will be like 2022 again but I can’t see them bailing everyone out again.

Some of the energy companies are looking at SC free tariffs. The SC is a way to differentiate what the costs are for supply, meters etc and the actual cost of the product. I don't like it either but it will be interesting to see what a SC free tariff looks like.

 

[BigJoe#1]

I think you're getting a bit mixed up with what charges are being reduced and who is responsible for what. Let me help you to understand. A simple search reveals the following regarding changes that come into place next week:

Key Changes to Your Bill
The reduction is achieved by shifting certain policy costs from energy bills to general taxation:
GOV.UK +4

• Ending the ECO Scheme: Funding for the Energy Company Obligation (ECO) scheme, which was previously added to bills, will end on 31 March 2026.
• Reducing Renewables Obligation (RO) Costs: The government is removing 75% of the costs for the Renewables Obligation scheme from household bills, funding them through general taxation instead.
• Lower Standing Charges: A portion of these changes involves removing Warm Home Discount funding from standing charges, which is expected to lower the fixed daily cost of having an energy supply by roughly £39 a year

So the above are the government imposed charges that are due to be removed or reduced from next week. That makes up the £117 you refer to. However those charges are simply being moved onto general taxation so are being levied in a different way.

Then we have the price cap that the regulator determines for 3 month periods and which the government has no direct control over. That will fall for the next 3 months. However, the way it is reported, for some reason, is always for what it means annually. So when the media say it will reduce the average bill by, say, £300 that is over the course of a year so that figure can be divided by 4, so in this case the reduction is £75 assuming you are not on a fixed tariff and that you use the average amount. Remember all of the figures are an average and the best way to save money is to actually use a bit less.

Of course the price cap only applies to those that are on a variable tariff. It is down to individual suppliers if they decide to pass on any savings when the cap falls. Some do, some don't.

It is a common trait with some posters that they seem to blame the government for absolutely everything when it is actually the way an open market operates (not always in the most efficient manner but that's down to the regulator).

I hope this helps you to understand how your bills are constructed and that you can see which parts are government controlled and which are not.

So why does the Government in the form of Starmer, Milliband or in fact any other Minister (because it is always them that come out and tell us - after the OFGEM announcement) come on all TV channels and say "WE are reducing your energy charges by £xxx. A bit disingenuous don't you think?"

Maybe you should go into consultancy and offer them your pearls of wisdom - I'm sure they'd appreciate it. Nice cut and paste by the way. I worked in the Energy sector in part alongside OFGEM (was OFGAS) for 37+ years.

 

[hampshireblue]

So why does the Government in the form of Starmer, Milliband or in fact any other Minister (because it is always them that come out and tell us - after the OFGEM announcement) come on all TV channels and say "WE are reducing your energy charges by £xxx. A bit disingenuous don't you think?"

Maybe you should go into consultancy and offer them your pearls of wisdom - I'm sure they'd appreciate it. Nice cut and paste by the way. I worked in the Energy sector in part alongside OFGEM (was OFGAS) for 37+ years.

Because they are politicians and they are, strictly speaking, reducing your energy charges by reducing the government imposed levies from your energy bill. Disingenuous? no not really as they are factually correct.

I have no "pearls of wisdom". All I did was try to help a fellow BMooner in a factual and strightforward manner who was unclear of how his bill was made up despite the fact, we now find, that he worked in the sector for many years. And then all that poster did was come back with some sarcastic comment rather than acknowledging the help they had just received.

Cut and paste saved me typing it out, so an efficient use of my time.

 

[abu13]

Only a matter if time until we get taxed on the number if breaths we take each month.
We will end up as a 3rd world country at this rate.

 

[Blue Maverick]

Only a matter if time until we get taxed on the number if breaths we take each month.
We will end up as a 3rd world country at this rate.

Looking at the roads I’d say we are there already

 

[kaz7]

I got the air fryer ovo sent me to help my cooking cost and am surprised it is a really big fucker, i was expecting a tiny one but they have gone all out, i fixed again months ago so wont be affected too badly i hope

 

[remember arthur mann]

I got the air fryer ovo sent me to help my cooking cost and am surprised it is a really big fucker, i was expecting a tiny one but they have gone all out, i fixed again months ago so wont be affected too badly i hope

Shows you how much profit they're making.

 

[hampshireblue]

Shows you how much profit they're making.

Not as much as you'd think. Octopus are the biggest supplier and made:

Previous Profitability (FY23/24 Results - Reported Feb 2025)

• Net Profit: £83 million (for the year to April 30, 2024), down from £203m in 2023.
• Revenue: £12.4 billion, reflecting a massive growth in customer base

That's less than 1% profit on turnover. They made a loss in 2025.

 

[remember arthur mann]

Not as much as you'd think. Octopus are the biggest supplier and made:

Previous Profitability (FY23/24 Results - Reported Feb 2025)

• Net Profit: £83 million (for the year to April 30, 2024), down from £203m in 2023.
• Revenue: £12.4 billion, reflecting a massive growth in customer base

That's less than 1% profit on turnover. They made a loss in 2025.

My heart bleeds.

 

[remember arthur mann]

Only a matter if time until we get taxed on the number if breaths we take each month.
We will end up as a 3rd world country at this rate.

End up?

 

[MCFC_ Phil]

My heart bleeds.

If it wasn't for Octopus buying out all those failed suppliers Govt would be in shit street and having to Nationilse the industry. Octopus used data and tech to change the game. Makes British Gas look like dinosaurs.