Octopus Energy CEO Greg Jackson has addressed concerns raised by customers regarding the imposition of early termination fees on its latest fixed-rate plans.
The leading energy provider in the UK has raised prices on fixed-rate tariffs and implemented exit charges in response to the surge in oil and gas prices following the recent turmoil in Iran.
Renowned consumer advocate Martin Lewis revealed that he had received complaints from Octopus Energy clients regarding the new policy change.
In response to a social media post by Lewis, Greg Jackson explained that the company had taken similar measures during previous energy price spikes a few years ago.
Jackson emphasized that the decision was necessary due to the doubling of wholesale gas prices and a 60% increase in wholesale electricity prices, prompting swift action. He assured that existing fixed-rate plans and variable tariffs would remain unaffected.
Amidst a landscape where major energy suppliers are withdrawing fixed-rate deals entirely, data from Uswitch indicates a significant decrease in the availability of fixed tariffs.
Although energy prices are expected to decrease from April following the announcement of a new price cap by Ofgem, experts predict a subsequent rise of around 10% from July, primarily driven by higher gas prices.
Analysts at Cornwall Insight have projected a substantial increase in Ofgem’s price cap for the July to September period, reaching £1,801 annually, a substantial jump from the April cap.
The final price cap determination will be influenced by average wholesale prices over a three-month period, contingent on the duration of the ongoing conflict in the Middle East.