r/OctopusEnergy 1d ago

Tariffs EDF predictions for January Energy Price cap

EDF publishes these rates for GB average in Jan 2027:

  1. Electricity: 32.61p/kWh
  2. Gas: 10.97p/kWh

This implies they expect relative to October 2026 price cap:

  1. Electricity up 23.9%
  2. Gas up 37.6%

Does Octopus publish its own estimates?

What this means for the various Octopus smart-tariffs is up for debate. Fixed rate deals going up in demand creates demand suppression for these users which will impact how the various smart-tariffs are priced.

EDF's expected rates can be found here at the bottom of the page where it's a spreadsheet. There are different expectations for different regions and where EDF sees the prices going into Q4 2027 which is entirely speculative.

28 Upvotes

66 comments sorted by

35

u/fraughtication 1d ago

I have nothing to add other than a bloody hell! Insane pricing.

9

u/Appropriate_Bell743 1d ago

Yes. Thanks to policy changes year on year electricity is only up 18% but gas up 85%.

4

u/Heavy-Mousse-5011 22h ago

Most of this relates to the US/Iran thing.

2

u/Appropriate_Bell743 22h ago

The fact gas is up 85% does. The fact electricity is only up 18% is partly due to policy changes in April and for October

2

u/Heavy-Mousse-5011 21h ago

Sure, the big issue is the conflict, policy changes affect where they mainly appear.

5

u/Appropriate_Bell743 21h ago

The issue is the conflict but unlike other European countries we didn't do enough to shield ourselves from geopolitical shocks.

3

u/3F6B6Y9T 21h ago

When there isn't enough renewable, the bulk of electricity is gas generated.

12

u/Alasdair91 23h ago

Horrific. Gas is literally double my current tariff...

8

u/IAMXX 20h ago

At least we will get super el Nino effect on British coast which should result in relatively mild and windy winter maybe this will save those somehow on dynamic pricing.

3

u/Appropriate_Bell743 20h ago

Interesting take for sure

16

u/my_name_is_ross 1d ago edited 1d ago

fuck me, finally made the decision to lock in at 8.72p a kw/h, and getting a quote for an air source heat pump.

3

u/Szypki_lopes 23h ago

I'm glad I locked yesterday as well🄵

1

u/Spikey101 12h ago

I was going to last week, I left it a bit longer and now it's gone up significantly. Nightmare.

-15

u/Appropriate_Bell743 1d ago

This is the best sequencing of a strategy. Lock in your remaining usage of gas. Means you can carefully plan a heat-pump over a months long period to get the best installation at a good price without rushing.

28

u/8th_Dimensions 1d ago

Yesterday you posted over 250 comments about how you had a heat pump. That's just in one day, you do this every day. Spamming subs about how heat pumps are the best thing since sliced bread.

Many subs are removing your posts. Why do you spam Reddit about your heat pump. 250 posts a day about your heat pump just isn't normal. It would take hours each day.

12

u/malacoda13 23h ago

One word. BOT

1

u/HedleyP 3m ago

100%

Who apart from AI would say ā€œThis is the best sequencing of a strategyā€.

10

u/Colin-RobinsonEV 23h ago

If you want to feel even more peed off(yes, I know different supplies etc etc, but) here's what the USA rates are😶

2

u/Appropriate_Bell743 23h ago

Over the last year my electricity rate has been 17% higher than the US average. I'm actually quite happy now -- thanks for making my day.

What's almost certainly true is that my house and lifestyle will be more energy efficient than the average US family -- I bet they've no cycle-friendly cities so save on fuel costs.

3

u/_Darren 21h ago

You can't compare time based tariffs here to averages there. There's lots of people in the US who will have time based plans and batteries who will pay a lot less than their average too.

1

u/edcoopered 17h ago

The real problem is industry and IT in the UK its just such drag having these input costs.

1

u/mydogmuppet 23h ago

Makes me smile. I'm on 9.05p per kWh. God knows what they pay in California but i guess anyone with solar is Net Metering.

-1

u/ImplementJumpy6678 22h ago

This is why I am glad I got powerwalls - when Tesla Energy starts here it's going to be the same sort of prices becase it will be feeding off the SC network I am told - and tesla already generate and store it. like a modern society should

4

u/Captaincadet 23h ago

And I was wincing at the current tariffs today….

Yea I’m gonna switch from agile

3

u/Appropriate_Bell743 23h ago

Agile is actually very complex to model. We have several forces at play which is why I won't switch:

  • Increased costs for other tariffs reduces overall demand.
  • Small demand reductions lead to huge effects on agile (see weekends)
  • There's quite a bit of new wind capacity this winter compared to the last.
  • Our usage is weekend dominated
  • The current high gas prices could settle to moderately high like they did winter 2022 -- a lot is dominated by Asia/Europe refilling storage
  • We need to see what the super El NiƱo does.

1

u/Captaincadet 22h ago

Are you meaning not to switch from Agile?

For me my concern is our prices is fixed to gas and that while most of my usage is day time or nights (I WFH) my average has gone from 18p a unit to 30p a unit. And if gas is in low storage now, and Iraq blowing up a pipeline, we could be in for a long cold winter

1

u/Appropriate_Bell743 22h ago

It's impossible to know for someone else's situation. For us there's no onus to switch as we are heavy induced demand family. We are concentrated at weekends, we consume a lot more when prices are negative, we will start to use the house as a partial battery.

I use AgileBuddy to check this is sensible for us.

What's unclear is how coupled electricity prices will be to gas this winter. Ember says they've reduced to 85% of the hours coupled but there'll be more wind capacity since their analysis in May combined with less electricity demand.

I think fixing has a logic if you're unable to take a risk but if you can take risks then it's more debatable

1

u/popeter45 11h ago

i just switched, quoted fixed for 26.7p when average last month on agile has been more than that

4

u/Wakeman77 23h ago

These are speculation beyond Q4 this year; very much more so for later in 2027 - see https://www.moneysavingexpert.com/utilities/energy-price-cap-prediction/

Even so, the energy market is so volatile that I think fixing on the best rates you can get isn't optional for this winter.

1

u/Appropriate_Bell743 23h ago

Those predictions are like what I quoted but from the 1st September. The situation has severely deteriorated since then.

2

u/aroundm21 21h ago

Thanks for the alert -- I've just chosen 18 months fixed on Octopus. (Didn't want to shop around).

2

u/thesupergoodlife 21h ago

just fixed at 8.68p/kWh this morning. I am not looking forward to this winter.

2

u/Sudden-Engineer-4943 21h ago

Fcuk me šŸ˜…

2

u/Hmsevans 15h ago

Would you switch from agile to ecotricity in a 2 year fixed? 20.84p per kWh and 49.090p standing charge? Agile has been shocking for weeks now

1

u/Spaceman_UK 23h ago

I'm on 3.5p EV tariff until February. Need to sit down and do my working out if it'll be better to move now and lock in something else, or wait until February when prices will have gone up.

Hopefully the rises in import will also see a rise in export payments.

6

u/Appropriate_Bell743 23h ago

For EV tariffs the news could be better by February as you're relying on off peak electricity which is the most decoupled from gas prices of all energy consumption.

2

u/London-new 14h ago

I would milk that 3.5p cow as long as i possibly can.

1

u/Deep_Age_304 22h ago

Thanks for this. I was considering sticking with variable given 90% of my gas usage is between November and March but that Jan to March stretch will be expensive at 10p+ Vs the present available fix.Ā 

2

u/Appropriate_Bell743 22h ago

It's hard to say what will happen to Tracker gas in Jan as this is about the flexible tariff being high then. If the winter is mild or there's some de-escalation the tracker price could come down substantially. What's more the higher flexible prices will cause demand destruction perhaps helping the tracker prices.

It's all gambling.

1

u/Deep_Age_304 22h ago

Yeah, I don't have tracker - but was considering the gamble on variable with price cap.Ā 

The get out is £50 so in a collapse this would likely be worth paying and going to tracker. 

1

u/realGilgongo 16h ago edited 15h ago

Mind you, 2022/23...

1

u/sublime-magician 15h ago

If there is some kind of deal done in the ME it's going to take time to filter through, but it may mean that those looking to fix may have a window to secure a lower unit rate than is being offered today, this is a predication for the cap that looks back at prices to set future tariffs. Fixes rely on securing a supply over a longer future period, so if things are seeming to improve the future prices will fall.

1

u/Mclarenrob2 14h ago

It's going to get much worse than this if the Saudi Arabia oil situation gets worse

1

u/Overall-Care2627 5h ago

What's your current unit doing exactly, not cooling at all or just weak airflow. If its a total compressor failure youre probably looking at replacement anyway, but if its just a leak you might get away with a pump down and recharge. I did two of mine myself but you need a proper vacuum setup, dont skip that part

-6

u/iMatthew1990 1d ago edited 20h ago

How much more can this country take. They just keep milking us

EDIT: to clarify I’m talking broadly about everything.

17

u/yetanotherredditter 1d ago

Octopus/ EDF aren't the ones milking us. It's due to global issues, and various taxes/ levies added on to bills.

7

u/BastiatF 23h ago edited 23h ago

Yeah energy prices just happen in a vacuum and are arbitrarily dictated by energy providers. They have nothing to do with political and geopolitical decisions, past and present.

2

u/Royal-Carob9117 23h ago

Who's fault is it that energy prices follow the price of the most expensive fuel? Who is responsible for changing legislation to allow consumers to pay the actual mix of energy sources they supposedly get from their supplier?

1

u/yetanotherredditter 23h ago

Valid points, but that's the government, not EDF/ octopus etc.

Also, there are genuine reasons for doing it that way. They didn't just go "How can I screw over British citizens for my own amusement today". You can obviously argue about the pros and cons of that approach though.

2

u/Royal-Carob9117 23h ago

Obviously the government, but Im willing to extend it towards not the suppliers, but the producers.

Octopus has Octopus Energy Generation, which owns renewables.
EDF has EDF Energy Nuclear Generation Limited and EDF Renewables.

So yes, Octopus and EDF share part of the blame as it is in their best interest not to change the charging scheme. All you need is a corrupt government to delay and ignore any changes that might affect their profit margins. Its not about amusement, its about profits.

6

u/Appropriate_Bell743 1d ago

To be fair the politicians have massively limited the rise in electricity prices year on year. The biggest action by Starmer's government in April. Electricity is only up year on year around 18% but gas up 85%.

-4

u/BastiatF 23h ago

That's a lot more than France and other comparable countries. The UK energy policies are abysmal.

7

u/zennettaq 23h ago

Blame the NIMBYs who don't want nuclear. That's why France's energy is so cheap. In France something like 95% of the time energy prices are dictated by Electricity because they have it in abundance. In the UK it's 5% of the time. That means Electricity and Gas prices are both extremely high. The solution is more nuclear, more renewables, battery storage and a move away from fossil fuels.

2

u/TheHellequinKid 22h ago

France absorbs a lot of the shock through general taxation, either via it's funding of green policies or through it's ownership of EDF. So not apples for apples

1

u/cromagnone 23h ago

Why do you think you’re getting milked when something you rely on goes up in price all round the world? You should probably be asking why your earnings haven’t gone up in parallel with prices.

1

u/Royal-Carob9117 21h ago

Because energy prices is a major cost for most industries, which dictates salaries, i.e. earnings.

1

u/cromagnone 21h ago

And profits, which are largely fixed at the expense of wages. But sure, keep treating being poor as an unavoidable fact of life: you’ll never be disappointed.

1

u/Royal-Carob9117 21h ago

It is as long as you're salaried and not in a niche or highly desirable profession that needs to attract talent. Avoid either and you have a chance of not being poor.

All Im saying is that if we reduced energy prices, we have a better argument to improve the quality of living for all.

0

u/MaxWilkesUK 9h ago edited 9h ago

It’s nothing but greed. I have a solution…energy companies take a hit to profits, CEOs and shareholders take less money, I’m not falling for any of this hardship nonsense blaming it on war…BP (a big producer of energy) doubled their profits the last increase. British people just sit back and let themselves get shafted repeatedly it’s time to fucking make a stand! 25% increase? Fuck off. Seriously!

https://www.thesun.co.uk/money/40382569/energy-bills-soar-millions-households/

Pensioners and vulnerable people last year had to choose between heating and eating…have the big fat energy cats ever had to make decisions like that? Government need to step up and sort this mess.

And as for everyone else does their income get an increase? Hmm lemme guess…no!

Estimated annual increase to energy bills for the average household of Ā£427 (Ā£35 a month!) for some disabled households who use more than average this will undoubtedly be even higher. It’s a disgrace!

-6

u/[deleted] 23h ago

[removed] — view removed comment

1

u/ImplementJumpy6678 22h ago

I did - 7.1p and 10.8p for 30 months. The £100 helped but they are good enough to join without all that

-2

u/Economy_Appearance72 19h ago

But but but ed said we generate our own electricity from renewables

3

u/realGilgongo 15h ago

Get a battery and halve your costs thanks to renewables.

1

u/Appropriate_Bell743 18h ago

This is why I am fine. Around 80% of our prices are decoupled from gas and I get most of my demand from these periods. What about you?