Whether you choose Fixed or Flexible, all our tariffs have fair & competitive rates and make the most of precious green energy, so you can rest assured you’re getting a good deal.
In this blog, we’ll help you weigh up your options.
The latest guidance
Updated September 27 2024
It’s worth looking at a fixed tariff. Right now, fixed rates are a bit cheaper than the October energy price cap, and we’ve secured a slightly longer 15 month fixed term for more security.
But you need to know: we don’t know what the future holds for the energy price cap, so read on for more info to help make your decision. The good news is, our latest fixed prices don’t have any exit fees, so you can change at any time.
Fixed and Flexible tariffs in a nutshell:
- Our fixed tariff locks in the cost of your energy for a fixed term (usually a year), so you won’t be impacted by any changes in wholesale prices throughout the year.
- Our flexible tariff is a variable tariff, which means the cost of your energy rises and falls with wholesale energy prices that change every 3 months.
Good to know: the price of energy consists of two things: price per unit (pence per kilowatt hour) and standing charge (pence per day).These are the things you should compare to find the cheapest price.
With all our tariffs, how much you pay each month will depend on the amount of energy you use. See our FAQ on this for more info.
How to switch tariff
Want to change tariff? It’s easy to do.
Simply log on to your online dashboard and click ‘Change tariff’. There, you can compare tariffs and switch if you see something you like.
You’ll see this option if you’re on a Flexible tariff or coming to the end of a fixed one. If you can’t see this option on your dashboard, get in touch with our team at hello@octopus.energy.
Fixed vs Flexible?
Fixed tariff pros:
- Price certainty. You know exactly how much you’ll pay per unit of gas and electricity each month, which is good news if you like to budget.
- No sudden changes. The cost of your energy will stay the same for the whole term, even if the wholesale price changes. Plus, none of our latest fixed tariffs have exit fees.
- Sense of security. You can rest easy knowing you’re protected from any significant shifts in the energy market during your fixed period.
Fixed tariff cons:
- If wholesale energy prices fall, the cost of your energy will stay the same, and you won’t benefit from any savings.
Sound like you?
If you’re into budgeting, like a degree of certainty, and are happy to bet on fixing your rates at today’s best price, a fixed tariff could be for you.
Flexible tariff pros:
- Potential to save. If the energy price cap falls, you don’t need to do anything, we’ll automatically lower your tariff prices so you start saving.
- Never any exit fees. There are never any exit fees or contract periods with a variable tariff, so you can switch to a different tariff at any time.
- Protected by the energy price cap. This is an accurate reflection of the cost to supply and stops suppliers making a big profit on your energy. (We are the only major supplier with prices consistently below the price cap).
Flexible tariff cons:
- If the cost of energy rises, your bills will also increase. Of course, you’ll get plenty of notice, so you can always change tariff.
- It’s not as easy to budget.
Sound like you?
If you like transparency, knowing your price reflects market rates and you’re happy to see how things change, a flexible tariff could be for you.
To sum up:
Whether you choose Fixed or Flexible Octopus, our tariffs are always good value. Some prefer to have a degree of certainty about their energy prices. Others are happy to go with the market if it could mean saving.
Ultimately, we want to make our pricing as fair and transparent as possible, whatever you decide. We believe that energy should be more affordable for all, not just in the fixed term but in the long term too.
Quick actions
Change tariffs
See our tariff FAQs
See our bills and payments FAQs
October price cap changes
Ofgem (the energy regulator) has announced the energy price cap will rise around 10% for a typical home from October 1 to December 31 due to the global cost of energy. Find out how this change could impact you and where to get support if you need it.
Ready to go smart?
Our standard energy tariffs are the tip of the iceberg. If you’re a smart meter customer using lots of energy off-peak, Octopus Tracker and Agile Octopus could help you save even more. Or, if you have some super cool low-carbon tech like an EV, you might consider joining the UK’s most popular EV tariff, Intelligent Octopus Go, to make the most of automatic car charging when prices are cheapest.
Further reading
Curious to know more? Our Head of Data Science, David Sykes, explains fixed and flexible (variable) tariffs, how we buy energy, and what happens at the end of your contract.
