Octopus Energy to hike bills in matter of weeks after 'changing formula'

Octopus Energy – which has 5.4 million customers across the country – is overhauling its tracker tariff for the first time since its reintroduction last summer and customers face paying more.

Octopus is to hike bills for tens of thousands in weeks. Octopus Energy – which has 5.4 million customers across the country – is overhauling its tracker tariff for the first time since its reintroduction last summer and customers face paying more.

It means customers will have to pay more from Thursday, February 15, the Sun newspaper reports. This is because the energy firm – which is rivalled by the likes of OVO, British Gas, EDF and more – tries to recoup lost cash.

Starting February 15, all existing customers will see their prices rise. The energy company, which also counts the likes of E.On among its rivals, said in an email to customers: “It’s been a good few years since the daily formula was updated.

READ MORE Met Office speaks out over horror maps as three inches of snow hit

“Since then, a lot has changed in energy – including a once-in-a-generation energy crisis and regulatory changes. A number of costs have slowly crept up. We’ve been shouldering the extra cost for customers ever since, meaning you’ve had a particularly great deal.

“We held off updating this for as long as possible, but ultimately, Tracker was designed to transparently reflect real-time energy costs. We changed the formula for new customers in December 2023, but held off a few months extra for existing customers.”

Octopus Energy will also be increasing their electricity standing charge on 15th February 2024 to 49.77p a day [£181.66/annum] from currently 41.61p/day, which is a 19.6% increase. Changes to the formula will mean on average, daily electricity rates are generally around 2.3 p/kWh higher and gas rates around 0.38 p/kWh higher.

Octopus said: “Because of how Ofgem’s price cap works, Tracker is becoming a ‘fixed term’ tariff. Your unit prices still change daily but your unit price formula and standing charge will be fixed for 12 months. We’ve updated Tracker’s T&Cs to reflect these changes.