Octopus Energy’s CEO, Greg Jackson, has addressed customer concerns regarding the imposition of early exit fees on its latest fixed-rate energy plans. The UK’s leading household energy provider has raised fixed-price tariffs and introduced exit charges in response to surging oil and gas prices resulting from the recent Iran conflict.
Renowned consumer advocate Martin Lewis revealed that Octopus Energy customers have raised issues about the company’s new policy. Responding to the feedback, Greg Jackson explained that the company had taken similar measures during previous spikes in energy prices.
In a social media exchange, Martin Lewis highlighted the increase in early exit fees for new fixed plans offered by Octopus Energy. He pointed out that while the company’s rates were not as competitive as those in the open market, the adjustments were likely made to maintain relatively lower fixed prices amidst market volatility.
Greg Jackson further clarified that the imposition of exit fees was a temporary measure driven by the significant rise in wholesale gas and electricity costs. He assured that existing fixed-rate and variable tariff customers would not be affected by the changes.
Meanwhile, several major energy suppliers have withdrawn their fixed-price tariff options entirely, leading to a significant decrease in available fixed deals, as reported by Uswitch. Although energy prices are expected to decrease in April due to the new Ofgem price cap, experts anticipate a subsequent rise of around 10% from July, primarily due to increased gas prices.
According to analysts at Cornwall Insight, projections for the Ofgem price cap in the following quarter have surged to £1,801 annually, marking a substantial increase compared to the April cap. The final price cap will depend on average wholesale prices over a three-month period, with the duration of the Middle East conflict playing a crucial role in determining future price adjustments.
