Ultimate Guide to Octopus Energy’s Agile Tariff in the UK.
Octopus Energy’s Agile tariff is a variable tariff that offers customers the opportunity to save money by shifting their energy use to times when demand is low and prices are therefore lower. This is known as “plunge pricing”.
Plunge pricing occurs when there is a surplus of electricity on the grid, usually due to high levels of renewable energy generation. When this happens, the National Grid may pay suppliers to take some of the excess electricity off the grid. This can lead to negative wholesale electricity prices, which means that customers can actually be paid to use electricity.
Octopus Energy’s Agile tariff tracks the wholesale electricity price every 30 minutes and passes these prices on to customers. This means that customers can see exactly how much they are paying for their energy and can take steps to reduce their usage when prices are high.
The Agile tariff is not for everyone. Customers need to be comfortable with the idea of managing their energy use and being aware of the wholesale electricity price. They also need to have smart meters installed, as this is how Octopus Energy tracks their usage.
Ultimate Guide to Octopus Energy’s Agile Tariff in the UK
However, for customers who are willing to put in the effort, the Agile tariff can offer significant savings. In the past, prices have fallen below zero for extended periods of time, meaning that customers have been paid to use electricity.
Here are some of the benefits of Octopus Energy’s Agile tariff:
- Potential to save money by shifting energy use to times when demand is low and prices are therefore lower
- Ability to track wholesale electricity prices and manage energy use accordingly
- No fixed contract, so you can switch to another tariff if you are not happy with the Agile tariff
Here are some of the drawbacks of Octopus Energy’s Agile tariff:
- Not suitable for everyone, as customers need to be comfortable with managing their energy use and being aware of the wholesale electricity price
- Requires smart meters to be installed
- Prices can fluctuate, so you may pay more for your energy at some times of the year than others
If you are considering switching to Octopus Energy’s Agile tariff, it is important to weigh up the benefits and drawbacks carefully. If you are comfortable with managing your energy use and are looking for a way to save money, then the Agile tariff could be a good option for you.