Octopus Energy is passing on even greater savings than expected from Monday
Energy firm Octopus has issued a message to customers informing them of a big price change coming into effect from Monday, April 1 that will be a lifeline for everyone battling big gas and electricity bills.
Ofgem works out the cap cost based on the wholesale energy price costs, but because the wholesale supply is months behind the price cap, it usually takes as much as half a year for wholesale price reductions to be factored into the next price cap. Octopus though is charging an average of 58p for the electricity standing charge and 29.36p for gas standing charge, which is lower than the 60.10p and 31.43p standing charges set by Ofgem. It means that on top of the average saving of £238 from the cap, each household will save another roughly £1.20 per month on standing charges against the price cap despite a rise overall.
"Standing charges have been increased but Octopus will keep our customers standing charges below the price cap, unlike other large suppliers.
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