Octopus Energy have updated their terms and conditions announcing a change for new customers.
The update comes as millions will be concerned about the rising energy costs as experts forecast the average yearly household bill will rise by 74 per cent to £3,600 this winter. Back in April, the energy price cap jumped by 54 per cent and now it is expected to rise even higher.
Despite the cost of living payments and the energy discount, thousands of homes across the UK are at risk of falling into fuel poverty as the bills rise as does the cost of the living with inflation is forecasted to hit 13 per cent in the coming months.
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Energy provider Octopus issued an update to its customers as it amended the terms and conditions, highlighting a change for new customers.
As well as 'simplifying and removing duplicate words' in the terms and conditions, Octopus Energy confirmed that when new customers join due to their previous provider going bust, they will supply energy quicker than previously. The green energy firm has updated the fine print to state that they will supply energy in five days rather than 21.
Along with that, Octopus has clarified what happens to new customers' credit if they are moved by Ofgem.
The terms and conditions states: "If we take over your energy supply because Ofgem gives a "Last Resort Supply Direction" and appoints us to be your new supplier, and if we had committed to do so with Ofgem before we were appointed, then if you had a credit balance with your previous supplier, we will honour this credit balance. We may need to get in touch to check certain information with you about this."
Most recently, it has been announced that energy prices are change to rise every twelve weeks, down from six months, warning that customers face a “very challenging winter ahead”. The changes are designed so that any fall in wholesale prices is passed on in full to customers and more quickly.
But it also means that consumers are less shielded from rising prices in the short term.
Conor Forbes, director of policy with Advice Direct Scotland, said: “The impact of this change will be watched with interest, but what is beyond doubt is that there are some incredibly challenging months ahead for households.
“Unfortunately, bills are going to soar in October just as winter arrives – and we can expect further rises in January. The key advice to everyone in Scotland is not to struggle alone.
“Our experts at energyadvice.scot are available to provide free advice on the support and assistance available, such as grants, and we can also ensure that Scots are claiming all the benefits they are entitled to by using our free checker tool at www.advice.scot.”
Since the beginning of 2021, 31 energy companies in the UK folded under the pressure as energy prices soared to record highs after demand increased across Europe in the wake of the pandemic and lockdown and prices have continued to spike since Russia invaded Ukraine in February 2022.
Millions of customers were left without an energy provider and as the energy crisis first hit the UK back in September 2021, firms stopped accepting new customers or offered high tariff deals. Financial journalist Martin Lewis urged people to 'do nothing' as Ofgem assigned new companies to affected customers.
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