Agile Octopus tariff is an electricity time-of-use tariff where the rate that is paid per kilowatt-hour (kWh) of energy used varies by time of the day. There are two types of time-of-use tariff (we consider Agile to be Dynamic): Contact online >>
Agile Octopus tariff is an electricity time-of-use tariff where the rate that is paid per kilowatt-hour (kWh) of energy used varies by time of the day. There are two types of time-of-use tariff (we consider Agile to be Dynamic):
Because Agile prices reflect the cost of electricity to energy suppliers (wholesale prices), the price is much higher during peak hours (4pm to 7pm). Octopus introduce an artificial rate uplift during these hours of between 10 and 12 p/kWh, not only reflecting the increased procurement costs in the wholesale market, but also to disincentivise consumption over the peak period. Likewise, prices will tend to be higher during winter when demand is greater. Prices will however follow prevailing market conditions, so will go up more rapidly, and also fall more rapidly when prices come down. For more information from Octopus, see these pages:
Time-of-use tariffs are generally best for households who:
With those caveats in mind, Agile prices are competitive right now and can be a good option if a household is happy with assuming some risk future price rises. Additionally, from January 2024 the Agile tariff is returning to a 12 month fixed-term tariff in order to more easily comply with regulations that resulted in ''unworkable complexity'' when under a variable tariff designation. As such, Agile is unlikely to be bound by the Ofgem price cap as it has been recently, and it will be much harder to ''game'' the system by switching between Agile and their standard variable tariff during the winter months to avoid the higher seasonal prices. It''s therefore also important to consider any exit fees.
The chart below shows the price in pence per kWh average for each hour of the day (weekdays only). For reference the chart also shows the current average electricity unit rate Ofgem price cap. During the early part of 2023 Agile prices were bounded in line with the Energy Price Guarantee price caps, explaining why peak prices were much lower until April 2023. Without the EPG, Agile rates are capped at 100p/kWh in any half-hour period, although the highest rate recorded so far has been 82.1p/kWh.
Along with other tariff prices, Agile has in the last year seen a decrease in prices to summer (ignoring peak periods in Q1 2023). Unlike standard variable tariffs though, Agile has seen month-on-month decreases reflecting the dynamic nature of the tariff. Off-peak prices for agile have stayed flat through Autumn and start of winter, whilst peak prices have increased to just over 40 p/kWh before dropping back in December.
If we assume a standard consumption profile (based on Elexon profile class 1) and a total annual consumption value equivalent to Ofgem''s typical domestic consumption values we can estimate the cost in each month of the year. In the chart below we have taken the monthly cost and created the annual equivalent to enable easier comparison to that quoted for other tariffs. As can be seen from the chart there is considerable variation in the cost, with winter periods being generally more expensive and summer it being cheaper. Remember this assumes no switching consumption from an ''average'' profile.
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Gas and electricity prices remain stubbornly high compared to a couple of years ago, despite the fall in the energy price cap at the beginning of this month.
Soaring energy prices over the past 18 months have just about wiped out any new fixed deals. With the exception of a handful for existing customers at around the current price cap rate, there's not much choice over and above the standard variable rate (SVR) for most households wanting to have more control over their energy bills before we go into the colder months..
But while a fixed tariff might give peace of mind, a new electricity tariff is offering the exact opposite, with prices changing every half hour throughout the day, with no certainty from one day to the next how much you will be paying. Agile Octopus has been cheaper than the Ofgem price cap recently – and it even paid customers to use electricity last weekend. But it's not for the faint hearted as it's a complicated tariff and it's not a good choice for everyone. However, if you're prepared to put the effort in, it could mean big savings.
Agile Octopus's rates are based on a forecast of wholesale prices firms pay for energy for the next day, including nationwide demand for electricity throughout the day – meaning cheaper rates in off-peak periods, usually overnight or in the afternoon, but higher prices in the morning and evening.
You may have heard about it through social media, as the tariff is the only one that passes ''negative'' prices to customers – through what the firm calls ''price plunge'' events. This happens very occasionally whenever more electricity is generated than consumed, meaning wholesale prices drop below zero. This last happened last weekend, July 15 and 16, when customers on the tariff were paid up to 10p for every kWh of electricity used for a few hours each day.
Agile is a smart electricity-only tariff for existing customers only, although you can switch Octopus's standard tariff for a couple of weeks then move to Agile if you fancy giving it a whirl. You'll also need to get a smart meter, so if you don't want one, this tariff is not for you. Plus, as it's an electricity-only tariff, you'll need a separate gas tariff either from Octopus or another supplier.
It's also worth bearing in mind that while Agile Octopus gives quicker access to falling prices, it works both ways. If wholesale prices were to shoot up, as they did last autumn, the rates you pay will shoot up overnight too. Agile is not covered by the energy price cap, though it has a 100p/kWh maximum cap, so if prices do rise rapidly, there is a limit on what you would pay, but it will be a lot higher than the SVR on the price cap of 29.29p kWh in the Northern region.
If you want to leave Agile Octopus, you can switch to Octopus' standard tariff at any time without charge, but you can''t move back to Agile or to any other of its smart tariffs within 30 days, so you can't chop and change depending on the pricing.
If all this sounds a bit much, Octopus also offers a Tracker tariff for both gas and electricity, which also tracks wholesale energy prices, but the rate you pay only changes once a day, rather than every half hour. Like Agile, customers who sign up to Tracker will benefit from a reduced standing charge.
An Octopus spokesperson claimed that Agile is the fairest tariff on the market and allows customers to benefit from falls in the wholesale cost of energy in real time (from the previous day). "Agile is also the ONLY smart tariff in the UK that passes ''negative'' prices to customers – as in, at certain times suppliers are paid to take energy from the grid," he said. "Two Sundays ago (2nd July) Agile customers were offered 8 hours of negative prices – that means we PAID customers up to 20p for every kWh of electricity they used. Some customers earned as much as £22 from turning up their energy use, while the top 5% earned on average £5 during the eight hour window," he said.
"85% of the time Agile is cheaper than a standard variable tariff (SVT). It allows customers to tweak their consumption to make the most of times when energy is cheaper. So far this year, the average rate on Agile has been 20.7p/kWh compared to 32.4p/kWh on Flexible Octopus. This means that customers on Agile have saved on average over £190 compared to our SVT so far this year. However, Agile is a complex beta tariff, so customers should be understand how it works and are aware of the risks it comes with."
With wholesale energy costs falling massively over recent months, Agile Octopus could now be a good option for some households, although it's it's difficult to give a definitive answer on whether it can save you money and how much. It all depends on the rates you get, how wholesale energy prices are changing, how much you use and when you use it. I signed up for Agile Octopus on July 3 and here's what I think about it.
My first three weeks on Octopus Agile
I have found that if you want to get the most out of the tariff and make the biggest savings, you do have to monitor the rates. So far, there has been a peak from around 4pm until about 7.30pm pretty much every day when the costs are higher than the price cap. On a few occasions this has been by quite a substantial amount - up to 42p/kWh on one day, so about 13p more. The times of cheapest rates tend to vary - sometimes it's cheaper mid-morning, sometimes mid-afternoon. Overnight rates are usually - but not always - the cheapest.
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