Octopus Energy announces price rise in unwelcome message to customers

Energy firm Octopus Energy has issued an unwelcome message to customers with a price increase from October 1.

That's because energy regulator Ofgem has now set its price cap for October to December, and the bad news is that it's going up yet again. Customers who aren't on a fixed deal will see their bills rise by 2% going into the winter, which is about £35 a year.

Following the news, energy firm Octopus issued a message to customers via its website about the price hike.

It said: "From 1 October to 31 December 2025, the price of energy for a typical home that uses both electricity and gas, and pays by Direct Debit, will go up by 2% to £1,755 per year - meaning bills for customers on a variable tariff will rise by around £2.93 per month.

"The energy price cap only applies to those on a flexible tariff (or variable tariff). As the price cap has gone up a notch, it's worth thinking about locking in your rates on a fixed tariff - as these currently offer our cheapest prices."

The firm explained that its fixes offer the cheapest rates right now, promising to significantly undercut the price cap even before it increases in October.

Octopus told customers that they can change their tariff to save money before the increase comes in. It said: "Click 'Change my tariff': one of the options under your account balance. "You'll have the option if you're on a variable tariff or a fixed tariff that's about to end. If you see a deal you like, you'll be able to switch.

"The price cap follows the cost of energy, which changes based on things like supply and demand, the weather, and global events - that's why it goes up and down. If you're on a flexible tariff (also known as a variable tariff), your prices are linked to the price cap and move with the market to reflect the actual cost of energy. Our Flexible tariff has always been below the price cap, so you'll know you're getting great value.

"However, some people prefer fixed rates for peace of mind. If you're on a fixed tariff, your energy price stays the same for a set time - and right now, these offer our cheapest rates. "That doesn't mean your bill will be the same each month - if you use more energy, you'll pay more - but you won't be hit with sudden price changes, giving you extra security."

Octopus adds: "Keep in mind that Ofgem's price cap sets the max amount suppliers can charge for each unit of gas and electricity - not your final bill. The more you use, the more you'll pay.

"Good to know: Octopus is the only large supplier to have never charged the full price cap!"