Octopus Energy launches the first tariff that could actually pay you to use energy
Octopus Energy has launched ‘Agile Octopus’ – the world’s first energy tariff to pay domestic customers to use electricity when wholesale prices plunge.
Across Britain, whenever more electricity is generated than consumed, wholesale prices fall – sometimes to below zero pence/kWh, when suppliers are paid to take energy off the grid.
The new Agile Octopus tariff introduces ‘Plunge Pricing’, which passes these negative prices on to customers – effectively paying them to use energy during times of over-supply.
This tariff enables anyone with the ability to shift their energy consumption – whether by setting timers for dishwashers and washing machines, using storage heaters, or setting the time for their electric vehicle charging – to get rewarded for helping reduce the stress on the grid.
Greg Jackson, founder and CEO of Octopus Energy, said: “This tariff is groundbreaking. By reflecting the real cost of energy on the grid every half hour, customers can capitalise on times when prices are especially low. Indeed, if the wholesale price goes below zero pence/ kWh, Octopus Agile will actually pay you to take the unwanted energy from the grid. As renewable energy production grows these events are only going to become more frequent.
“As well as having launched the first (and only) daily price tracker, this innovative tariff proves that it is challenger suppliers like Octopus Energy, not the Big Six, who are leading the way in unleashing the power of renewables.
“The Agile Octopus tariff cements Octopus’s claim to be the most progressive and innovative energy supplier in the UK and we’re excited about what we can do to help our customers move to a more renewable future.”
Customers will be alerted to ‘Plunge Pricing’ via text message, email or via their online dashboard, and once a month they will be sent a full breakdown of their half-hourly energy pricing and usage.
Over the past 12 months:
- The unit price of electricity dropped below 2p / kWh 31 times
- There were four ‘Plunge Price’ events when the unit price of electricity dropped below zero pence/ kWh
- A typical home with a typical consumption profile would have saved £231 compared to the average Big 6 variable tariff
- A home-charging EV owner could have saved £669 compared to the average Big 6 variable tariff.
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