Octopus Energy Leads in Export Tariff
Since homeowners have been able to export their own energy to the national grid, they have benefitted from receiving payments from their energy supplier. Current rates have been incredibly lacklustre, not least because of the rising cost of wholesale gas and electricity, but one energy supplier has gone above and beyond to kickstart a green revolution.
Octopus Energy says its Smart Export Guarantee (SEG) rate is three times higher than any competitor. The company has doubled its Fixed Outgoing tariff to help customers with their winter bills. Octopus rates have been at 7.5p/kWh since February, but are now sitting at a healthy and much more attractive 15p/kWh.
The rates went up from 5.5p/kWh in February due to the impact of the Russian invasion into Ukraine, but recent crises have impacted rates further. With the government introducing the Energy Price Guarantee, energy bills will still be higher than usual. Octopus has decided that it will help its customers as much as possible by upping its export rate to almost three times more than any other UK energy supplier.
Here’s how eight other energy companies compare to Octopus Energy’s new SEG rate.
While the fixed tariff boasts 15p/kWh, customers are able to keep their current energy supplier and export their energy to Octopus, but they’ll have to settle for a reduced rate of 4.1p/kWh. As a green energy supplier, the upped rate is a great incentive to switch.
The good news is, this export tariff isn’t only limited to customers with solar panels, as those with solar battery storage and small wind turbines will still qualify for this rate. So it pays to be green and be part of a green supplier network, knowing you’re doing good for the grid and the environment.
While it is an amazing rate compared to other companies, the reality is, it does cost energy companies a hefty sum to pay its customers for the energy they produce. But Octopus is taking the UK’s renewable energy into its own hands, aiming to turbo-charge the nation to go green for cheaper, cleaner energy.
In this way, it’s doing better than the UK Government already. With the ban on fracking controversially lifted, shale gas will only make a significant difference to domestic supplies only after around a decade. What’s more, fracking isn’t likely to stem any further price hikes, which are largely driven by international wholesale gas prices. According to the latest government data gathered earlier this year, just 17% of people support fracking, whereas solar had an almost 90% backing.
With people like Jacob Rees-Mogg determined to put a spanner in the works of renewable energy generation, it’s humbling to see an energy company start to pave the way for homeowners to go green by offering a clear and desirable incentive.
Octopus Energy’s Agile Outgoing tariff has even had higher rates than the advertised 15p/kWh. It dynamically follows wholesale prices and averaged 34p/kWh over the past year. According to the company, London Agile Outgoing customers were paid up to £1.29/kWh earlier this year, which makes a real difference to homeowners facing mounting energy price hikes.
This announcement comes after they unveiled a new £40 million support package for customers, reducing standing charges for those on variable tariffs by 4%. The UK needs more forward-thinking, customer-friendly energy companies like Octopus Energy and hopefully this will start a trend for others to follow suit.