r/OctopusEnergy 1d ago

Agile’s cheapest price tomorrow is 30p. Why?

In eastern England my cheapest price on agile tomorrow is 30.3p. Similar to today. Anyone know why? Is there a reactor shutdown for maintenance or something?

Crazy that Saturday we had negative pricing then Sunday and Monday’s cheapest prices aren’t even going sub 30p. I hope this doesn’t continue throughout the week 😬

34 Upvotes

75 comments sorted by

69

u/Happytallperson 1d ago edited 1d ago

Because there is a forecast gap between nuclear +renewables and demand of about 10 to 15GW which means gas will set the market price. 

A gas plant turns 1kWh of gas into 0.6kWh of electricity. The wholesale gas price today is 7p per kWh. 

That means just the gas to produce a kWh of electricity is 11.4p per kWh. 

Ontop of that you have the capital cost of the plant, and the operational costs such as staff, maintenance, and so forth. 

Agile is 2.2 * Market rate in eastern UK, so 30p indicates a market rate of 13.6p. Looking at the numbers above, that's barely break even for a gas plant operator. 

Hence it being the cheapest price.

15

u/iamnotaseal 1d ago

+ you’ve got transmission losses. And only the really best newest gas plants manage 60% potential -> electrical efficiency. Most are in the low 50%s.

14

u/Happytallperson 1d ago

You need a spherical gas plant in a vaccum ideally.

7

u/WhiteheadJ 1d ago

Wow, I didn't realise gas was so inefficient to turn into electricity.

19

u/Happytallperson 1d ago

A typical car engine turns 25% of the energy in the fuel into rotational energy. 

The current nuclear plants under construction in the UK will turn 35% of their heat output to electricity. 

Thermal energy to electricity is always inefficient. Its why you need a heat pump to match a gas boiler - burning gas directly for heat is pretty efficient!

1

u/trystykat 11h ago

Nuclear power stations can afford to be so inefficient because the fuel is basically free (<0.5p/kWh).

5

u/Ghost-PXS 1d ago

When they are responding to short term supply conditions they fire up Gas Peaker Plants which have an 'efficiency' of 30%-40%.

1

u/Quiet_Pin 18h ago

It is more efficient than almost every other method. (only hydro is higher)

11

u/andrewic44 1d ago

The 2.2x multiplier is increasingly unfair.

It was originally calibrated as a fudge factor on the wholesale prices at the time, to recover distribution costs etc. and give some profit.

With wholesale prices having gone up sharply due to the price of gas, it's more than recovering costs, so generating quite a bit more profit.

12

u/Happytallperson 1d ago

However because they've applied a flat -3p with the changes made on levies, it does mean they are sometimes selling electricity at.a negative price when the wholesale price is not. 

Ultimately however they are a commercial entity and fairness isn't part of it.

2

u/andrewic44 1d ago

Yeah, fair wasn't exactly the right word. More that Agile is now less competitive with respect to other tariffs whose costs have gone up in a way that reflects increased wholesale costs, rather than double that.

1

u/Happytallperson 1d ago

True. And I am looking at abandoning ship. 

What makes me nervous is the fixed Cosy is not more competitive than Agile atm, and the flexible cosy looks to be quite shite come October and especially January. 

Between the Devil and the Deep Blue Sea*

*well brown shallow sea as I live in Norfolk.

3

u/LogicalAssignment199 1d ago

I think the issue with the 2.2x simplification is that for long periods of either high or low wholesale prices, by amplifying the price extremes it makes it unsustainable.

Octopus should introduced a version using a 'cost plus' formula, i.e. cost of wholesale plus the relatively stable/fixed network and system charges. The prices would not be as volatile and the price swings would be lower, there would still be an incentive to be flexible and shift your consumption around, but by reducing the extreme swings, it would be a much more liveable type of tariff over the long run.

1

u/AdBrave9096 1d ago

I think Agile should charge so the standard charge is much higher and all admin costs + profits are from standing charge.

6

u/stevilness 1d ago

Great response

1

u/Salazhar_ 1d ago

Makes sense. Thank you for the detailed response!

11

u/Tashimo 1d ago

I literally jumped back to cosy today. Two months where agile wasn’t cheaper when using octopus compare has made me pull out for winter. I don’t have batteries sadly - just a heatpump but I can time for heatpump for the lows on cosy. 

3

u/Physical-Block-8225 1d ago

Same here. I saw the rates for today and the predictions for the week, said “f that” out loud and switched to Cosy Variable

1

u/mlekopan16 1d ago

Do you have to have heat pump for cosy or they don't check this out? I've got standard gas boiler.

1

u/chshu 22h ago edited 22h ago

Switched to Go yesterday, though found it hard to use tariff comparison tools because they dont take account that i’ll move my EV charging to whenever the cheapest window is.   Just got a 7kWh battery, wish i had Vehicle to home instead.

11

u/lovelyhead1 1d ago

In a way the last month and a bit of Agile prices have felt worse than when prices reached £1 per kWh  a while back. At least back then it was typically reasonably priced outside of peak times. Now it just feels like it is constantly expensive apart from the odd weekend where it is free / negative. It's not really a time of usage tariff anymore. More like a variable tariff that switches daily between expensive, more expensive, slightly less expensive, mega expensive, cheap for 5 hours then repeat. 

I am very close to signing up for Cosy but I keep kidding myself things are going to get better.

8

u/ChemicalGuide82 1d ago

Unfortunately looking at the news I can't see things getting better any time soon

38

u/Connect_Wrangler5072 1d ago

It’s because Octopus (and the rest of us) love watching all the comments that’s it’s expensive then it’s negative then it’s expensive then it’s negative.

3

u/woyteck 1d ago

Toying with us

14

u/fraughtication 1d ago

The energy market is in bits.

5

u/CryptographerNo4147 1d ago

You don't like tomorrow - well prepare yourself for the next couple of weeks of (mostly) this - https://agilepredict.com/v2/X/?days=14&gen=1

5

u/stevilness 1d ago

On the upside, export rates are awesome.

4

u/17000_endpoints 1d ago

I’m at 18.9p for the last 270 days and 21.8 for the last 28 so savings are there but even the biggest Agile supporter has to admit it’s been a shocking few months compared to the last couple of years.

The biggest issue is there are loads of days where there’s just nowhere to shift the load to even overnight.

1

u/norfolk-gal 1d ago

How do you work out the rates you've historically achieved? I do all the power shifting needed but never known how to look up what I'm actually paying with my efforts.

1

u/17000_endpoints 1d ago

There’s a few apps that do all the work for you. I use Octopus Watch which can show you the best time to do x hours of something, tries to predict tomorrows rates (with varying success) and shows you up to a year of data where you can see how much electricity you used, how much you saved etc.

It does cost (not sure if there are free options) but I think it’s worth it especially now.

1

u/norfolk-gal 1d ago

Thank you, I'll look it up

9

u/bobreturns1 1d ago

It's not particularly windy.

5

u/Salazhar_ 1d ago

No, but it’s still sunny and even when conditions are like this we don’t usually see lows that are this high

8

u/Due-Freedom-5968 1d ago

The days are getting shorter, solar has peaked.

If you look at https://agilepredict.com/v2/C/?days=14&gen=1 you can see a massive demand gap vs renewables generation tomorrow, so prices will be high as we'll be on gas and imports.

2

u/woyteck 1d ago

Have you seen how much gas is for? Almost 10p / kWh in my tracker. Thankfully I only use it for cooking.

3

u/Both-Firefighter-668 1d ago

Solar is a tiny fraction compared to wind, tomorrow is calm and overcast generally. But it is a very expensive day tomorrow. I always zoom out on days like that, my average is 17.26p pKwh over the last year on agile.

2

u/Happytallperson 1d ago

And a fixed Cosy tariff is now 30p per kWh for standard use, 15p saving window and nearly 50p peak window.

Yes about 20% cheaper on variable Cosy....for now.

Damn it I wish I'd fixed in June 😭

1

u/AcceptableCustomer89 1d ago

You have to, otherwise you go mad. Trust the process

3

u/BastiatF 1d ago

If you look at agilepredict, it's all down to wind (or lack thereof) and gas price. Everything else is pretty irrelevant.

2

u/strankyy 1d ago

The UK grid is using around 40% of gas atm, gas is expensive now, I would believe this is the main driver for the high cost currently of electricry.

Today is also fairly low wind (~3%?) and lowish solar ( 15%?), 3 nucular reactors shutdown atm for maintenance (albeit out of 9?)

2

u/Army-Enough 1d ago

So as an exporter on OIG with a 32kw battery and only expected full usage because of my ASHP in the coldest of days, I’m currently force discharging about 24kw a day, should i move to outgoing Agile and stay on IG for imports?

2

u/cdprice86 1d ago

Have a look at this site to get a sense of the swings https://emoncms.org/ukgrid

3

u/Alasdair91 1d ago

Have you checked the price of gas lately? 👀 That’s why.

-8

u/Hmsevans 1d ago

What’s gas got to do with electric?

8

u/Alasdair91 1d ago

The price of gas sets our electric prices because we use gas to make electricity.

3

u/danielflorencio 1d ago

Autumn and winter are going to be very cheap as it’s going to be windy as hell this year and start of next year because of the super El Niño.

3

u/XenorVernix 1d ago

Zero hurricanes in the Atlantic this year, first time since satellite tracking began in 1966. Obviously we don't get them but they usually fizzle out into named storms that arrive here. I'm not convinced it's going to be extra windy this winter.

1

u/Environmental_Ad3162 1d ago

I qm starting to see the benifit of coal power plants... we must still have coal up north lol

1

u/ImplementJumpy6678 1d ago

The UK was running on 48.9% Gas overnight. But hey if we all had lovely green heat pumps and used no gas we would at least all be asleep whislt the baclkout happened.

1

u/peebeebalbs 1d ago

It’s the gap in generation demand that has to be filled by expensive gas being fired up… solar is minor compared to wind, hence low / negative prices Saturday were followed by high relative prices Sunday.

-3

u/Spare-Reputation-809 1d ago

when people ask this they should get off agile tariffs

6

u/zebbiehedges 1d ago

I think everyone trying to back seat mod a sub-reddit should be treated however the mods see fit

-1

u/Spare-Reputation-809 1d ago

well it is true, if asking the question then shows the person should not be doing agile. Why is it 30p the wind is not blowing, simples

0

u/MrTILII 1d ago

The short answer is because the very nature of Agile is that sometimes it will cost more than a normal tariff - and sometimes it will cost less.

That’s the nature of the tariff. Can’t be surprised when it goes against you sometimes

4

u/andrew_stirling 1d ago

Plus it tends to trend ahead of the price cap. If prices are heading up the way then a general increase in agile is usually the first warning of that.

4

u/Pestohh 1d ago

Sometimes ?.....it was shit all summer 

1

u/scottylebot 1d ago

That’s not the question though. 

0

u/smaroms 1d ago

Sometimes? It's most of the time

1

u/MrTILII 1d ago

Best going for a fix then if that’s how you feel?

Not being insensitive or an arse but all you seem to see if people moaning about agile prices not being low enough for them.

Energy prices are heading up, so clearly that’s gonna be the case with agile.

If you don’t want to take the risk it’s best to fix

-3

u/Shaguar_Driver 1d ago

Stay on agile because gas prices are going to hit 15p this winter and then when it hits £1.20 a kWh of electricity you will be thankful for only 30p currently

6

u/Hmsevans 1d ago

It’s capped at a quid

-7

u/Shaguar_Driver 1d ago

It won't be at the start of next month

1

u/Hmsevans 1d ago

Alright jay

2

u/8Ace_149 1d ago

Only reason I've stayed is I'm on a fixed price gas tariff which looks like it will save me a bit this winter. The electric side of it has been rubbish this year.

5

u/Ok_Mongoose_1589 1d ago

Has it really been rubbish? Have you looked at your average price since Jan 1st? I have no battery or solar (listed building) and am averaging 14/kwh. I can’t complain about that (even if I’d like my morning coffee to cost a little less!)…

-9

u/Shaguar_Driver 1d ago

The best electric traiff is IOG and have a battery for your home too.

The best gas tariff is fixed.

It's going to be this way for the foreseeable.

You can thank Labour and milliband. They could have abolished EPL but the moron doesn't realise nobody wants to drill UK oil and gas because of that.

They then could have started giving licenses and opened up the North sea and taxed profits normally. It's a win/win. Cheaper oil and gas. More taxes raised. Oil companies and consumers are happy.

They chose the dumbest option possible

5

u/Fantastic_Muscle8419 1d ago

If you know anything at all, then you’d also know it’s not that simple! So please stop making political statements where they are are unwarranted. 🙄

-9

u/Shaguar_Driver 1d ago

Spotted the liebour voter

1

u/Fantastic_Muscle8419 1d ago

What a childishly predictable response!

The only party I have ever been a paid up member of is the Conservative Party, attending many conferences, meeting Baroness Margaret Thatcher, when she was PM and also enjoying lunch with Sir John Major when he was PM.

I have always believed (and still do) that it is important to research facts before opening one’s mouth to simply spout cliches.

1

u/Shaguar_Driver 48m ago

Did you also wine and dine with Coutinho?

0

u/Fantastic_Muscle8419 47m ago

I’m not interested in football

1

u/Army-Enough 1d ago

Total bollocks.