Octopus Energy announces new tariff that's £50 cheaper than April price cap

Octopus Energy has announced a new loyalty tariff that is £50 cheaper than the price cap which is set to increase in April.

The new Octopus Flexible tariff will kick in from 2 April and is a temporary measure to help struggling families, the firm said.

The tariff is being quoted at £1,921 a year for someone with typical energy use, while the price cap will increase to £1,971 for direct debit customers - up from the current level of £1,277.

The supplier is also doubling its Octopus Assist fund to £5 million to help ease the burden on hard-up families.

Who is eligible for the tariff?

The new Octopus rate only applies to customers who joined the energy firm by 3 March 2022 or if you’re coming off a fixed deal before 2 April 2022.

Every Octopus customer on a Standard Variable Tariff will get £2 off the price cap - existing or new.

You will pay £1,969 rather than the £1,971 that’s to come with the new price cap in April.

Loyal Octopus customers get an additional £48 rebate applied via their electricity charges which is automatically calculated and applied every month.

You will pay £1,921 a year - £50 less than the price cap.

The supplier announced the change in a blog post on its site, and tweeted the news to its followers.

What else is Octopus offering to its customers?

The energy supplier is doubling its Octopus Assist fund to £5 million to help struggling customers.

The fund is a grant for the most hard-up families, who can claim between £50 and £500.

On average, most have been sent £100.

The provider has already helped 30,000 customers through the fund since its launch in November 2021.

There’s no deadline to apply for this either but it is recommended to claim as soon as possible if you think you are eligible.

How do I check my tariff with Octopus?

If you are an Octopus customer, you can check which tariff you’re on in your online account.

If you are already on the flexible tariff you won’t need to do anything, the lower prices will kick in automatically from 2 April.

If you are affected you will be sent an email from the supplier explaining what the cost difference means to your bills.

Customers will hear from the supplier over the next few days, Octopus said.

If you are 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 will still be paying under the price cap.