Octopus Energy has announced a £40million support package for customers, including standing charge reductions to all households on its Flexible Octopus tariff. All customers on the tariff will automatically get a 4% discount compared to the Ofgem price cap.
A standing charge is the daily amount that you must pay, despite the amount of energy you use, to be connected to the grid. In addition, up to 100,000 Octopus customers will be able to apply for "standing charge holidays" of up to six months.
Households on a low income will be eligible and could go several months without needing to pay a standing charge. The application process is expected to look at evident financial struggle, so those on benefits may stand a higher chance of being accepted, reports The Mirror.
CEO and Founder of Octopus Energy, Greg Jackson, said: “High standing charges are egregious. This £40million package is the beginning of our battle to bring them down. Far too many costs have been loaded onto standing charges - from grid and distribution charges to failed suppliers.
“These charges just make it more difficult for hard-pressed customers to save money through efficiency and Octopus is making a stand to change that.”
Octopus’ standing charge support comes on top of Government support. PM Liz Truss's energy plan will see a price freeze that caps energy bills at £2,500 for two years.
But the energy Price Guarantee is based on unit prices, so the more energy you use, the more you will pay - meaning your bill could exceed the £2,500. The Government's £400 rebate to reduce every households energy bill this winter will still go ahead.
