Octopus Energy issues £122 update to millions of customers

Richard Guttridge
·1-min read

Octopus Energy has sent an update to customers about upcoming changes to energy bills. The Energy Price Cap is being lowered from July 1, which will cut bills for millions of households.

It will mean average savings of £122 a year for customers who pay by direct debit, bringing a boost for struggling households. However, bills will not change immediately for most people, but there should be a reduction over time as charges go back in the right direction.

It's the latest reduction announced by the energy regulator Ofgem after two years of sky-high energy prices. Octopus has sent a message to millions of its customers to explain the changes and how they will impact them.

READ MORE: Anyone claiming DWP's legacy benefit warned they must 'do this' or lose money in weeks

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Direct debit customers pay a standard rate from month to month and build up credit on their accounts if they are paying for more than they use. Suppliers may choose to reduce monthly bills if they think they are too high.

The company said: "We’re cutting prices from July 1: around £122 a year for a typical home. For over three years our default standing charges have been cheaper than any other large supplier, and will continue to be so.

"We’re not adjusting your payments right now. As ever, we’ll monitor your payments and automatically suggest a reduction if it looks like you’re paying too much. If you’d like to protect your rates from future changes, we’re offering a 12 month fixed tariff with no exit fees.

"Wholesale energy costs have fallen again, so we’re reducing our prices." But Octopus added: "Analysts are currently predicting wholesale costs may rise back above current rates from October."

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