Octopus Energy says it will knock £122 off customer bills from 'next month'

Octopus Energy has announced it is "cutting" customers' bills amid the Cost of Living crisis. Octopus has emailed customers to explain it is ""cutting prices from July 1: around £122 a year for a typical home" and "for over 3 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," the energy firm has wrote. "Dear [customer name]," Octopus wrote, adding: "Wholesale energy costs have fallen again, so we’re reducing our prices. I’ve recorded this short video to give you a bit more detail.

"You’ll find a personalised breakdown of your new rates attached. We’re not adjusting your payments at this point — we’ll continue to keep an eye on your payments and suggest a reduction if it looks like you’re paying too much, or an increase if it’s needed.

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"You can also check our unique Balance Forecast in your online account to get a sense of whether your payments are set to a sensible level, and adjust them if helpful. Analysts are currently predicting wholesale costs may rise back above current rates from October.

"If you’d like to fix your prices for the year ahead, our fixed tariff has no exit fees. This means if prices continue to fall, you can simply choose another tariff in your online account. Compare prices and make the switch in your online account. Unfortunately, mainly because of regulated costs imposed on every meter, standing charges remain high. If you are struggling, please get in touch — you can apply or find out more about our support fund, standing charge help or our electric blanket scheme.

"Alongside our discounted standing charges, we are constantly working on new ways for everyone to save by using energy when it’s cheapest and greenest, or avoiding it when the grid’s stressed. Happily, National Grid has just announced that the programme behind our Octoplus Saving Sessions will now run year round, instead of only Winter — with over £10m+ paid out to more than 1.6m customers, Saving Sessions are a simple way to save a few pounds off your bill.

"And our Octoplus rewards keep getting bigger. Because big companies want our customers’ business, a savvy Octoplus member can claim hundreds of pounds of freebies and bargains a year, including free hot drinks from Caffè Nero or Greggs, regular sweet treats, discounted Odeon cinema tickets, meals at Mitchell & Butler, and National Trust passes. so make sure to make the most of your Octoplus rewards.

"Finally, Ofgem has proposed allowing energy companies to hide, or even bar, their best deals from loyal customers. While some of our tariffs may need smart meters or connected devices, we’re committed to fair pricing for all, so we promise you we will never exclude customers from our cheapest offers simply because of how long they’ve been with Octopus.