Is Octopus Energy Still the Cheapest Supplier in 2024?

The UK energy market is ever-changing, leaving many consumers questioning whether their current supplier provides the best value. Octopus Energy has been widely recognised for its competitive pricing and strong focus on renewable energy. This article explores whether Octopus Energy continues to stand out as an affordable choice and evaluates how it compares to other suppliers in terms of cost, service quality, and added benefits.

Is Octopus Energy still the cheapest supplier?

Yes, Octopus Energy is still among the cheapest energy suppliers in 2024, especially for customers on their Tracker tariff, which adjusts rates based on wholesale prices. However, the cheapest supplier varies depending on individual usage and regional rates, so it’s important to compare tariffs to find the best deal.

The Current Energy Market

The UK energy sector has experienced significant price fluctuations in recent years due to factors such as geopolitical tensions, increasing demand, and global supply chain issues.

As of November 2024, energy costs remain a concern for households. For January 2025, Ofgem increased the energy price cap by 1.2%, setting the average annual bill at £1,738. The rise in the price cap highlights the pressures on the energy market and underscores why many consumers are re-evaluating their options to ensure they are not overpaying.

Wholesale energy prices continue to be unpredictable, and suppliers face challenges in offering consistently low tariffs. As a result, consumers must carefully assess their energy usage and supplier contracts to avoid unexpected costs.

Octopus Energy’s Tariffs

Octopus Energy offers several tariff options to suit different needs, making it appealing to a broad range of households and businesses. Here are the main options:

• Flexible Octopus: A variable tariff that adjusts according to market prices. This option provides no long-term commitment and allows customers to switch if better deals arise.
• Octopus Tracker: A unique tariff linked to wholesale energy prices, which updates daily. It can result in lower costs when market prices fall but also carries the risk of price increases.
• Octopus Go: Designed for electric vehicle (EV) owners, this tariff provides reduced rates during off-peak hours to make overnight charging more economical.
• Fixed Tariffs: These plans lock in energy prices for a set period, protecting customers from sudden market changes.

Each tariff is structured to meet specific energy usage patterns, allowing customers to find a plan that suits their financial and practical requirements.

Comparing Octopus to Other Suppliers

Octopus Energy faces stiff competition from other major suppliers in the UK. Comparing its tariffs to other providers gives a clearer picture of its position in the market:

• British Gas: A well-known name with a variety of fixed and variable tariffs. While its experience in the market is a strength, its prices are often higher than newer suppliers like Octopus.
• EDF Energy: Known for offering a range of fixed-rate plans, EDF has introduced initiatives such as free electricity on certain days to attract customers. These incentives may benefit specific households depending on their usage.
• E.ON Next: E.ON offers a fixed discount below the energy price cap for 12 months, which provides some stability for customers.
• Outfox the Market: This supplier has consistently offered some of the lowest fixed-rate tariffs available, often undercutting the energy price cap by significant amounts.
• Ovo Energy: Another provider focusing on renewable energy, Ovo offers fixed-rate tariffs that provide protection from price hikes, while maintaining a commitment to sustainability.

Consumers looking for the cheapest option must consider all elements of their contract, including standing charges, exit fees, and potential perks offered by the supplier.

Customer Satisfaction

The quality of service provided by energy suppliers is just as important as the cost of their tariffs. Octopus Energy has built a strong reputation for customer satisfaction, with many users praising its transparency, responsive service, and easy-to-use digital tools.

On Trustpilot, Octopus Energy holds an impressive rating of 4.8 out of 5, reflecting overwhelmingly positive experiences from a large number of customers. This contrasts with some traditional suppliers like British Gas, which has a Trustpilot rating of 4.2. Common complaints against British Gas include billing issues and difficulty reaching support teams.

Octopus’s focus on clear communication and reliable service has helped it establish itself as a trusted provider, even if it is not always the cheapest option.

Beyond Pricing

While the cost of tariffs is a key factor, there are other aspects that influence the overall value of an energy supplier:

• Customer Support: Quick and effective resolution of issues can make a significant difference, particularly when dealing with billing or technical problems.
• Sustainability: Octopus Energy is committed to providing 100% renewable electricity across all its tariffs. This appeals to environmentally conscious customers looking to lower their carbon footprint.
• Technology: Octopus offers innovative tools, including an app and an online portal that allow customers to monitor usage and manage their accounts easily.
• Extras: Services like smart meter installations and tariffs tailored for electric vehicles offer added convenience for customers with specific needs.

These elements add value to a supplier’s offering, even if they do not directly affect the cost of energy.

Tools for Choosing the Right Supplier

Choosing an energy supplier can be simplified by using the right resources:

• Comparison Websites: Platforms such as MoneySavingExpert and Compare the Market help users compare prices, standing charges, and additional benefits across different suppliers.
• Energy Usage Monitoring: Analysing past bills and usage patterns can help identify the most suitable tariff for your household.
• Customer Reviews: Reading feedback from other customers can provide useful insights into the experiences offered by various suppliers.

Using these tools helps ensure that you select a supplier that aligns with your financial and practical needs.

Is Octopus Energy Still the Cheapest?

Whether Octopus Energy remains the most affordable choice depends on individual circumstances, such as your energy consumption, location, and preferences.

For some households, Octopus’s transparent pricing and innovative tariffs may offer excellent value, especially for those prioritising renewable energy. However, other suppliers like Outfox the Market or E.ON Next might provide lower rates under specific conditions.

Octopus Energy continues to be a strong choice for those who value sustainable energy and exceptional service. Nevertheless, regular comparison of tariffs is essential to ensure you are getting the best deal.

Frequently Asked Questions (FAQs)

1. What makes Octopus Energy different from other suppliers?

Octopus Energy stands out for its focus on renewable energy, transparent pricing, and customer-friendly digital tools. It also offers innovative tariffs like Octopus Go for electric vehicle owners and Octopus Tracker, which tracks daily wholesale energy prices.

2. Is Octopus Energy 100% renewable?

Yes, Octopus Energy provides 100% renewable electricity across all its tariffs. The company sources its energy from wind, solar, and other renewable sources.

3. Does Octopus Energy have exit fees?

Octopus Energy typically does not charge exit fees on its standard variable tariffs, allowing customers to switch tariffs or suppliers without penalties. However, fixed-rate plans may include exit fees, so it’s essential to check the terms of your contract.

4. How can I switch to Octopus Energy?

Switching to Octopus Energy is straightforward. Visit their website, choose a tariff that suits your needs, and provide your details. Octopus handles the transition process with your current supplier, ensuring no interruptions in your energy supply.

5. Are Octopus Energy’s prices affected by the energy price cap?

Yes, Octopus Energy’s variable tariffs are subject to the energy price cap set by Ofgem. Fixed-rate tariffs are not directly affected by the cap but can still reflect changes in wholesale energy costs.