Octopus Energy makes admission over bills and says 'we're not'

Octopus Energy has issued a message to millions of its customers explaining how their bills will be affected by upcoming changes to the Energy Price Cap. The Price Cap is being lowered by the energy regulator Ofgem from July 1.

This sets out how much the average direct debit household should be paying each year. The cap is being lowered by £122 on July 1.

This may be good news for households but direct debit-paying customers have been warned not to expect an immediate reduction to their bills. That's because bills are fixed at a standard monthly rate for most households and reviewed at a certain point to see if people are paying too much or not enough.

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It means bills should eventually come down for most families but there is unlikely to be an immediate change to bills. Those households charged more for what they are using will build up credit on their account, to be used to help cover bills when they rise higher in the colder months.

Octopus explained in a message to customers: "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."