Octopus Energy CEO, Greg Jackson, has addressed customer concerns regarding the company’s implementation of early exit fees on its latest fixed tariffs.
The UK’s leading household energy provider has raised prices on fixed-rate tariffs and introduced exit fees in response to surging oil and gas prices following the recent conflict in Iran.
Renowned consumer advocate Martin Lewis revealed that Octopus Energy customers have raised issues about the new policy changes. Following a social media post by Lewis, Greg Jackson explained that the company had taken similar measures during previous energy price spikes.
The current market volatility has led to a scarcity of affordable fixed-rate deals, prompting companies like Octopus Energy to take defensive actions to maintain competitive pricing. Jackson emphasized that existing fixed-term contracts and variable tariffs remain unaffected by the recent changes.
In related news, several major energy suppliers have withdrawn their fixed-price tariff offerings entirely, leading to a significant reduction in available fixed deals, according to data from Uswitch.
While energy prices are expected to decrease from April due to the revised Ofgem price cap, experts anticipate a subsequent increase of around 10% from July, primarily driven by elevated gas prices. Analysts at Cornwall Insight predict a substantial rise in the price cap for the period of July to September, attributing it to the ongoing Middle East conflict and its impact on wholesale energy prices.
The final price cap adjustment will be determined based on average wholesale prices over a three-month period, thus contingent on the duration of the geopolitical tensions in the Middle East.