Understanding Octopus tariffs

Most energy suppliers give you one choice: a flat rate per kilowatt hour, the same price whether you use electricity at 3am or 6pm. Octopus does things differently. They offer a range of tariffs, each designed around how and when you actually use energy. Understanding the options is the key to picking the one that saves you the most.

Fixed vs variable

Traditional suppliers talk about “fixed” and “variable” tariffs. A fixed tariff locks in your unit rate for 12 months. A variable tariff moves with market conditions, usually tracking the Ofgem price cap.

Octopus has a similar distinction, but their variable tariffs are far more interesting than most. Their standard variable tariff (Flexible) works like any other supplier’s variable rate. Their smart tariffs, though, vary in much more granular ways. Agile changes price every 30 minutes. Tracker changes daily. Go and Cosy have different prices at different times of day.

Octopus’s variable and smart tariffs have no exit fees. You can switch between them freely, which makes it low-risk to try something new. Their fixed-rate tariffs may carry an exit fee if you leave before the term ends, so check the terms before committing to a fix.

Time-of-use tariffs

This is the concept that makes Octopus stand out. Electricity doesn’t cost the same to generate and distribute at every hour of the day. At 2am, when most people are asleep, demand is low and wholesale prices are cheap. At 5pm, when everyone gets home and turns on the oven and the heating, demand spikes and prices rise.

Time-of-use tariffs pass this reality on to you. Use electricity when it’s cheap and you pay less. Use it during peak demand and you pay more. If you can shift even some of your usage to cheaper periods, the savings are real.

Standing charges

Every Octopus tariff includes a daily standing charge for each fuel. This is the fixed daily fee you pay regardless of how much energy you use. It covers the cost of maintaining the grid connection to your home.

Standing charges vary by region (more on that below) and by tariff. They’re typically around 45p to 55p per day for electricity and 28p to 35p per day for gas. The standing charge is often overlooked, but it adds up. At 53p/day for electricity alone, that’s nearly £200 a year before you’ve used a single unit.

Tariff codes

Every Octopus tariff has a code that tells you exactly what it is. You’ll see these in your account details. They follow a pattern like E-1R-AGILE-23-12-06-A where the components indicate the fuel type, number of rates, tariff name, launch date and region.

You don’t need to memorise these, but it’s useful to know they exist. If you’re ever checking rates on the Octopus API or third-party tools, the tariff code is how you look up the right prices.

Regional variations

Energy prices in the UK aren’t uniform. The country is divided into 14 electricity regions (based on the old regional electricity boards) and 13 gas regions. Your region affects both your unit rate and your standing charge.

The differences aren’t enormous, but they exist. A kWh of electricity might cost 1-2p more in one region than another. When you sign up, Octopus assigns you to the correct region based on your postcode. If you’re comparing tariffs online, make sure you’re looking at rates for your area.

The Ofgem price cap

The Ofgem price cap sets a maximum amount that suppliers can charge on their default variable tariffs. It’s updated every quarter based on wholesale costs and other factors. The cap applies to the unit rate and standing charge, not to your total bill.

Octopus’s Flexible tariff is set at or slightly below the cap. Their smart tariffs work differently. Agile and Tracker both have their own Price Cap Protect (a maximum unit rate of 100p/kWh for electricity and 30p/kWh for gas) that’s separate from the Ofgem cap. Go and Intelligent Go have fixed off-peak rates that don’t directly relate to the cap at all.

The price cap is essentially a safety net. It means the standard tariff can never be outrageously expensive, even when wholesale prices spike.

The tariff lineup

Here’s a quick overview of every tariff Octopus currently offers:

Flexible is the standard variable tariff. One flat rate per kWh, same price all day. Tracks the Ofgem price cap. No smart meter required. Best for households with straightforward usage who want simplicity.

Agile has prices that change every 30 minutes, following the wholesale market. Can go negative (you get paid to use electricity). Best for people with batteries, flexible schedules or a willingness to shift usage around.

Go offers a cheap 5-hour overnight window (00:30 to 05:30) at 8.5p/kWh. The day rate is higher than Flexible. Best for EV owners who charge overnight with any charger.

Intelligent Go provides a 6-hour overnight window (23:30 to 05:30) at 7p/kWh with smart scheduling that can allocate additional cheap slots when the grid has spare capacity. Requires a compatible EV or charger. Best for EV owners who want hands-off scheduling.

Tracker follows the daily wholesale price using a published formula. One price per day rather than half-hourly like Agile. Best for people who want transparency and believe wholesale prices will stay low.

Flux has three time bands: cheap overnight import, standard daytime and premium evening export. Designed for “buy low, sell high” with solar and batteries. Best for solar owners, especially those with battery storage.

Cosy provides cheap electricity windows in the early morning (04:00 to 07:00), afternoon (13:00 to 16:00) and late evening (22:00 to 00:00). Three rate levels throughout the day. Best for households with heat pumps, electric boilers or electric radiators that can take advantage of off-peak heating.

Snug is designed for traditional storage heater homes. Cheap overnight charging (00:30 to 06:30) plus an afternoon boost period. Requires a SMETS2 smart meter with auxiliary load control. Best for storage heater households wanting to replace old Economy 7 arrangements.

Switching between tariffs

One of the best things about Octopus is that you can switch between smart tariffs without any fuss. There are no exit fees on variable or smart tariffs. You don’t need to call anyone. You request the change through the app or website and it typically takes effect the same day or next business day.

This means you can try a tariff, see how it works for your household and switch to something else if it doesn’t suit you. There’s very little risk in experimenting.

Use the tariff comparison tool to check rates on each tariff before you switch, or read the guide on choosing the right tariff if you’re not sure where to start.