Octopus Energy Price Comparison: How Competitive is it in 2024?
As one of the leading energy suppliers in the UK, Octopus Energy has become a well-known name for consumers looking for competitive, green, and transparent energy options. In this guide, we will dive into how Octopus Energy compares to other providers in 2024 and beyond, review the company’s pricing trends, and explore the factors that have helped it stand out in an increasingly crowded energy market.
2024 Trends in Octopus Energy Pricing
In 2024, energy prices across the UK continue to fluctuate in response to wholesale energy market conditions and regulatory changes. As of January 2024, the energy price cap enforced by Ofgem, limits the maximum charge for standard variable tariffs (SVTs). The price cap was set at £1,928 for the January-April 2024 period, following earlier adjustments. Octopus Energy’s standard variable tariff aligns closely with this cap, standing at £1,913, making it one of the more competitive suppliers under this regulation (click here to learn more about Octopus Energy’s tariffs).
However, Octopus’ prices historically have stayed below the cap whenever possible, and the company has committed to limiting price increases relative to the wider market. Even though Octopus’ prices have risen in tandem with the price cap in early 2024, the company’s track record of minimizing increases and offering innovative ways for customers to manage costs remains a key point of differentiation. For customers on standard variable tariffs, the volatility in 2024 has led many to reassess fixed-rate deals, although such deals have become less common as suppliers hesitate to lock in long-term prices.
How Does Octopus Compare to the Big 6 Providers?
Octopus Energy has consistently aimed to disrupt the pricing strategies of the traditional “Big 6” energy providers namely—British Gas, EDF Energy, E.ON Next, OVO, Scottish Power, and SSE. Here’s a comparison of Octopus Energy’s pricing, support, and innovation compared to these legacy providers:
- British Gas
British Gas, one of the largest and oldest energy companies, has traditionally been a trusted brand but has struggled with higher pricing and mixed customer service reviews. In contrast, Octopus Energy is widely regarded for its transparency, with lower rates for many customers and a clear focus on sustainable energy. British Gas has also aligned its prices with the energy price cap, but Octopus’ flexibility in offering green tariffs and smart options provides more variety, especially for tech-savvy and environmentally conscious customers. - EDF Energy
EDF, known for its nuclear and renewable energy portfolio, often has competitive rates. However, Octopus Energy surpasses EDF in terms of customer service, as Octopus has consistently been ranked as one of the best UK providers for customer satisfaction (this is one of the many reasons Octopus is the only supplier to be a Which? recommended energy supplier 7 years in a row). Octopus’ efforts to reward customers for reducing energy usage during peak times and its innovative smart tariffs also put it ahead in terms of innovation. - E.ON Next
E.ON Next’s focus on renewables aligns with Octopus Energy’s mission, but Octopus often undercuts E.ON’s pricing. Octopus’ commitment to keeping its prices below the price cap whenever possible, alongside extensive customer support during the energy crisis, gives it an edge in value for money. Octopus also pioneered tariffs like “Agile Octopus” and “Octopus Go” for electric vehicle owners, which provides added value that E.ON Next doesn’t yet match in flexibility. - OVO Energy
OVO has been a strong competitor to Octopus Energy, focusing on carbon reduction and customer-centric services. However, Octopus’ unique pricing model, which includes wholesale price tracking and rewarding customers for using energy during green hours, continues to set it apart. OVO’s pricing is often competitive but has not consistently beaten Octopus in customer satisfaction or the breadth of green energy incentives (click here to read more about Octopus Energy’s 100% green electricity). - Scottish Power
Scottish Power offers a mix of traditional and renewable energy, but it is often positioned as a mid-to-high cost provider. In contrast, Octopus Energy focuses on keeping prices as low as possible, even in times of market volatility. Octopus’ innovation in customer support, particularly through the Octo Assist Fund during the energy crisis, has helped distinguish it from Scottish Power, which has been slower to offer tailored support schemes for vulnerable customers (click here to read more about how Octopus is helping pensioner with winter fuel payments).
Historical and Ongoing Efforts by Octopus to Support Customers
Since its inception in 2016, Octopus Energy has prioritized fair pricing and customer-centric services. Historically, the company has been a trailblazer in exposing the “tease and squeeze” tactics used by legacy providers, where introductory low prices would switch to much higher default tariffs once the initial deal ended. Octopus has led national campaigns for better consumer protections, helping establish the energy price cap in 2018, which has since saved UK households billions.
During the 2021 energy crisis, Octopus invested over £150 million to shield its customers from excessive costs. It launched the Octo Assist Fund to provide financial assistance to vulnerable households, ensuring that even during volatile times, customers could find relief. These efforts have helped Octopus maintain its reputation as the most customer-friendly energy supplier in the UK.
In addition to financial support, Octopus introduced innovations like the Agile Octopus tariff, which lets customers take advantage of price drops in the wholesale energy market. The company’s Intelligent Octopus Go tariff has also been a game-changer for electric vehicle owners, offering lower rates for overnight charging.
Support and Innovation: A Leader in Sustainable Energy
Octopus Energy is at the forefront of the green energy revolution, continually innovating to help customers save money while reducing their environmental footprint. Its smart tariffs, such as Octopus Tracker, give customers transparent access to real-time wholesale energy prices, allowing them to adjust their consumption accordingly. The Octopus Saving Sessions reward customers for using less power during peak hours, helping the grid balance demand while lowering bills for participants.
Moreover, Octopus is committed to renewable energy generation, supplying 100% green electricity to its customers. It has also taken steps to integrate electric vehicles and home energy storage solutions into its tariffs, paving the way for a cleaner, smarter energy system.
Conclusion
Octopus Energy’s pricing in 2024 remains competitive, with a clear commitment to keeping rates as low as possible despite market fluctuations. Its ongoing efforts to support customers through financial assistance and innovative tariffs, alongside its dedication to green energy, ensure that Octopus continues to lead the UK energy market. Whether you compare it to the Big 6 providers or other challengers, Octopus Energy’s combination of customer service, fair pricing, and cutting-edge sustainability initiatives makes it a top choice for consumers looking for reliability and value.