Octopus Energy CEO Greg Jackson has addressed customer concerns regarding the imposition of early termination fees on the company’s new fixed-rate plans. The leading energy provider in the UK has raised prices on fixed-rate tariffs and implemented exit charges due to the surge in oil and gas prices following the recent conflict in Iran.
Renowned consumer advocate Martin Lewis revealed that Octopus Energy customers have reached out to him regarding the changes in company policy. Responding to the situation, Greg Jackson explained that the company had taken similar measures in response to high energy prices a few years back.
In a social media post, Martin Lewis highlighted that Octopus Energy has introduced early exit fees for new fixed plans, which were not as competitive as open-market rates. He suggested that the move might be a defensive strategy amid the volatile energy market conditions.
Greg Jackson responded, acknowledging the necessity of the action given the significant rise in wholesale gas and electricity prices. He assured that existing fixed-rate plans and variable tariffs remain unaffected by the changes.
Meanwhile, several major energy suppliers have discontinued fixed-rate tariff offerings entirely, with a notable decrease in the availability of fixed deals, as reported by Uswitch. Although energy prices are expected to decrease from April due to the new Ofgem price cap adjustment, experts anticipate a subsequent increase of approximately 10% from July onwards, primarily driven by higher gas prices.
According to analysts at Cornwall Insight, the forecasted Ofgem price cap for July to September could reach £1,801 annually, marking a £160 increase from the April cap. The final cap figure will depend on average wholesale prices over a three-month period, contingent on the duration of the ongoing conflict in the Middle East.
