Octopus Energy has doubled its Fixed Outgoing tariff to help lower customers' bills as they head into winter.
This will increase from 7.5p/kWh to 15p/kWh, with all customers on the tariff seeing their rate automatically changed from today (20 September). This includes domestic customers with solar installations that also use Octopus Energy as a supplier.
Customers on Octopus Energy's Smart Export Guarantee (SEG) tariff will see their rate remain at 4.1p/kWh for every unit of power they export.
The increase in the Fixed Outgoing rate follows the company increasing the tariff from 5.5p/kWh to 7.5p/kWh in February amid high power prices at that point, which have continued to grow throughout the year, spurred by geopolitical volatility following the Russian invasion of Ukraine.
Whilst the majority of customers on Octopus’s Fixed Outgoing tariff have solar panels, the new rate will also apply to those on it who have battery energy storage or small wind turbines.
According to the company, it now pays self-generating customers three times more per kWh than any other UK energy supplier
“We’re always looking at ways to put money back in people’s pockets. By doubling the payments to customers helping to grow the UK’s renewables footprint, we are doing just that,” said Rebecca Dibb-Simkin, chief product officer at Octopus Energy Group.
“It has become abundantly clear that we need to wean ourselves off fossil fuels and become energy independent as a nation. While export tariffs are incredibly cost-intensive for energy suppliers, we still choose to give these best-in-market rates to turbocharge the rollout of renewables, accelerating the shift to a cheaper, cleaner energy future.”
As of February, Octopus Energy topped the ranks of SEG tariff, followed by Bulb offering 5.57p/kWh, E.ON offering 5.5p/kWh and ScottishPower offering 5.5p/kWh.
Meanwhile, customers on Octopus’s Agile Outgoing smart export tariff have already been benefitting from much higher rates, as its dynamic pricing follows wholesale prices.
As such, customers on this tariff were paid 34p/kWh over the last year. Incidentally, this matches the new higher unit rate set out by the government as part of its Energy Price Guarantee from October.
Agile Outgoing customers in London were even paid up to £1.29 for every kWh they sent back to the grid earlier this year, Octopus said.
Doubling its SEG tariff comes as the supplier unveils a new £40 million support package for customers that will see it reduce standing charges for those on variable tariffs by 4%.
The company has already absorbed £150 million of energy bills increases for its customers, it stated, and has now doubled its Octo Assist financial hardship fund to £15 million.