Octopus announces it'll knock £315 off customer energy bills

Octopus Energy has moved to launch a new off-peak rate for heat pump customers. Octopus drops UK’s lowest heat pump tariff even further – saving customers up to £315 savings a year on heating costs compared to a gas boiler.

The one-of-a-kind ‘Cosy Octopus’ heat pump tariff gets a third off-peak rate window and customers love the tariff, with nine out of ten (93%) saying they’d like it to stay. ‘Cosy Octopus’ is the UK’s cheapest smart heat pump tariff, with all three off-peak windows priced roughly 50% below the new rate on a standard variable tariff (SVT).

The addition of a new low-cost period offers more savings and flexibility for Cosy customers who often also have other clean technologies such as solar panels, batteries and EVs in their homes. On top of the additional dip pricing window, Octopus is lowering rates across the entire tariff by 10%.

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An average customer on Cosy can save £315 a year on heating costs compared to a customer with a gas boiler on an SVT. Customers love ‘Cosy Octopus’, with 93% saying they would be disappointed if the tariff were to be removed.

Rebecca Dibb-Simkin, Chief Product Officer at Octopus Energy, said: "Heat pumps are ushering in a new era in heating – helping us to end our addiction to dirty gas boilers and moving us towards a clean, cheap heating system. We’re always looking for new ways to reward customers who are choosing clean tech and, by that, are getting the country closer to a green, flexible energy system. And we’ll keep innovating relentlessly to bring the costs of green heating down even further.”

Octopus Energy has been pioneering heat pumps since 2021, investing over £50 million to accelerate their rollout and launching Britain's first R&D centre for heat pumps in Slough. Last year the company launched its own air-source heat pump – the Cosy 6 – which is designed and manufactured in the UK.