I know what you’re thinking: What is this ridiculous clickbait title? Well, a few weeks ago, I charged my electric car, made lunch in my oven, and washed my clothes in a matter of hours, all for free. Last weekend, my electricity cost less than 8p per kWh to do the same job. On average, I’m currently saving 40 per cent on my electricity bills compared to what most people in the UK are forced to pay now.
then how? Octopus Energy, and I want everyone to know about it.
I’ve noticed my electricity use over the past few months thanks to a mix of UK energy market prices and buying a new electric vehicle. recommended by a friend Octopus Energy’s Agile Contract, which offers variable pricing every 30 minutes based on wholesale rates. He’s been using it all winter with great savings, as wholesale electricity prices in the UK have started to fall in recent months. In 2023, Octopus’ agile prices are set to fall well below the Energy Price Guarantee subsidy, which was introduced by the UK government to cap maximum consumer prices for electricity after wholesale prices were hiked following Russia’s invasion of Ukraine.
Octopus Energy releases its 30-minute rates every day at 4 PM so you can see when is the best time to use your dishwasher, washing machine, oven or charge an electric car. The peak rate between 4PM and 7PM is usually the normal rate of 34p or 35p per kWh, but outside of that time, it’s averaged out at around 20p per kWh for me personally in recent months.
You can save a bundle of money if you can shift your energy use outside the peak window. Even if you can’t, you’re still going to save, because for about 20 hours of the day, Agile rates are well below standard rates.
A standard rate for electricity across UK providers is currently around 34p per kWh, with daily service charges of up to 50p. These rates and service charges vary slightly per provider, but most people in the UK are currently paying over 30p/kWh. In July, the cap will be set at 30p per kWh in the UK, a rate that falls below the current energy price guarantee and back to the Ofgem regulator with its own price cap.
But this price range is still way higher than what I am currently paying. Over the past 28 days, I have used an average of 16kWh per day at a rate of 16.9p per kWh, instead of the 34p per kWh I pay at the standard rate. That’s a savings of about 50 percent compared to what most people would pay for the same amount of electricity.
So why haven’t I and many other people heard about it until recently? Variable rate tariffs are risky. Octopus Energy Markets Agile As a tariff that is ideal for people with EVs, storage heaters or anyone who can move their energy use outside of peak times. But it also warns that prices could rise by up to 100p per kWh at any time, more than three times standard rates now. It sounds scary, but it’s something that rarely happens. In fact, it has not exceeded 40p per kWh in most places in the UK by 2023.
This is largely because wholesale prices are falling, creating more stable averages and declining pricing moments where you get hours of free electricity. You can see in the chart above that the price on Octopus Energy Agile has dropped to 0p per kWh or less several times over the past six months.
Despite discounts offered in recent months, you can also see a sustained spike for most of December, where maximum prices rise to 80p per kWh, a very expensive rate that customers will see mostly during the 4PM to 7PM window . If wholesale prices continue to stabilize and decline, hopefully we won’t see the same again this winter. If prices go up, you can always switch back to the standard rate immediately, which will be capped by Ofgem’s guarantee.
If prices skyrocket, you can always switch back to the standard tariff
This volatility makes it difficult to recommend this type of energy tariff to everyone in the UK, which is another reason why most people may not have heard of Agile. Consumer advocate Martin Lewis, better known as “”.money saving experthas been consistently pushing the government to help electricity prices, but has rarely recommended people switch to variable rate tariffs. Consumers in the UK throughout this energy and cost-of-life crisis Lewis recommendations, but he highlighted Octopus Energy’s “clever” agile tariffs. in april, Now that we have six months of stable data, I think it’s time to start recommending Agile until we have fixed rates back in the market.
If you are smart enough to track the daily prices, you will make a huge profit here. I personally have become Octopus Energy salespeople with my friends and family, as the company also offer a referral program where you split £100 with a friend you refer for the service. I use the excellent Octopus Watch iOS app to see when prices drop and to see price rates over a 24-hour period, but Octopus also publishes these in its mobile app and website.
You Desire The latest SMETS2 smart meters are required (some SMETS1 are supported), however, to be able to automatically send meter readings to Octopus Energy and use Agile. If you don’t have a smart meter, you can still switch, and Octopus will arrange for the meter to be installed. Octopus has also started marketing it tracker tariff Lately, which is similar to Agile, but has more restrictions on how long to exit if price goes the wrong way.
It’s also refreshing to use a utility company that is eco-friendly and has good customer service. with speed Inefficient and Broken UK Energy MarketOctopus Energy goes far beyond just supplying green energy with one of the best Software-as-a-Service products I’ve seen in the UK.
Eventually, I hope to automate this with smart home tech and outlets so I can limit the time I’m monitoring rates. But I thought I’d share this tip just in case it helps you save some great British pounds.










