Octopus Energy has launched Agile Octopus – the world’s first energy tariff to pay domestic customers to use electricity when wholesale prices plunge.
Across Britain, whenever more electricity is generated than consumed, wholesale prices fall – sometimes to below 0p/kWh – when suppliers are paid to take energy off the grid.
The new Agile Octopus tariff introduces ‘Plunge Pricing’, which passes these negative prices on to customers – effectively paying them to use energy during times of over-supply.
Customers will be alerted to ‘Plunge Pricing’ via text message, email or via their online dashboard, and once a month they will be sent a full breakdown of their half-hourly energy pricing and usage.
Over the last 12 months, the unit price of electricity dropped below 2p/kWh 31 times. There were four ‘Plunge Price’ events when the unit price of electricity dropped below 0p/kWh.
On the Agile Octopus tariff, a typical home with a typical consumption profile would have saved £231 compared with the average Big 6 variable tariff. A home-charging EV owner could have saved £669 compared with the average Big 6 variable tariff.
‘This tariff is groundbreaking. By reflecting the real cost of energy on the grid every half hour, customers can capitalise on times when prices are especially low. Indeed, if the wholesale price goes below 0p/kWh, Octopus Agile will actually pay you to take the unwanted energy from the grid. As renewable energy production grows these events are only going to become more frequent.
Founder and CEO of Octopus Energy
Supporting a greener Britain
Historically, big drops in energy prices have occurred overnight as energy consumption drops. With increasing amounts of renewable energy available from solar and wind generation, such events are becoming more frequent.
The Agile Octopus tariff enables anyone with the ability to shift their energy consumption – whether by setting timers for dishwashers and washing machines, using storage heaters or setting the time for their electric vehicle charging – to get rewarded for helping reduce stress on the grid.