Octopus Energy has sparked widespread fury after announcing a price increase for customers on its Intelligent Octopus Go and Octopus Go tariffs with less than two weeks' notice. The changes will take effect from May 1, with emails sent to customers blaming “global volatility” amid the war in Iran.
Standing Charges Increase
The energy giant, which serves households in Birmingham and across the UK, informed customers that standing charges will rise by approximately 52p. The move has drawn sharp criticism, particularly as the company had recently reduced rates following a drop in the Price Cap.
One X/Twitter user commented: “Two weeks’ notice of change. And they say they review every three months. Also wiping out the Government’s levy and costing us more than before.” Another added: “Octopus putting up its Octopus Go rates from 1 May even though it brought them down just weeks ago for the drop in the Price Cap? Doesn’t sound right.”
CEO Responds to Backlash
Greg Jackson, CEO of Octopus Energy, addressed the growing furore, stating: “Typical users on this tariff will have a blended rate of around 18.3p/kWh – around 20% below the Price Cap, and the more they charge their car the bigger the saving.” He explained the short notice, saying: “We aim for about two weeks – slightly less this time, as we didn’t want to email over the weekend when there’d be less support available.”
Martin Lewis Criticises Move
Martin Lewis, the 52-year-old founder of Money Saving Expert and a regular on BBC and ITV, slammed the price hikes on X. He noted that these deals are “not price capped” and are variable tariffs, meaning “it is allowed to move the price as long as adequate notice is given.”
Octopus Defends Decision
A spokesperson for Octopus defended the price rise, saying: “Before the war in the Middle East, customers on these tariffs saved over £860 a year on charging compared to filling a car with petrol, now it’s over £1000 cheaper – one of the many tariffs that Octopus is delighted to be providing to help drive down the cost of energy, even in the current volatile period.”
The news follows reports of a major European airline cancelling 160 flights, with passengers to be rebooked.
