Martin Lewis Addresses Octopus Energy's Price Increase for Go Tariffs
MoneySavingExpert (MSE) founder Martin Lewis has publicly shared his perspective on an imminent price adjustment affecting certain Octopus Energy customers. The energy provider has notified subscribers of a forthcoming hike for both the Octopus Go and Intelligent Octopus Go (IOG) variable tariffs, scheduled to take effect from May 1, 2026.
Details of the Tariff Changes
The overnight rate for Intelligent Octopus Go is reportedly set to rise to 6.9p per kilowatt-hour (kWh). This increase was announced on April 20, providing customers with approximately ten days' notice prior to implementation. Despite this adjustment, the revised rate remains notably lower than the standard national average for energy costs.
A customer, using the username @Ken_w_davies, contacted Martin Lewis on the social media platform X to express concerns. They stated: "@MartinSLewis Octopus putting up their Octopus Go rates from 1st May even though they brought them down just weeks ago for the drop in the price cap? Doesn’t sound right."
Martin Lewis's Response and Clarification
Martin Lewis replied: "Doesn't sound great, but just to be technical. Octopus Go is not a price capped tariff so it didn't move due to drop in Price Cap. It dropped due to the removal of some govt policy costs from energy bills (which is the same reason the cap moved but still they're separate)."
He further explained: "As its not priced capped and it is a variable tariff it is allowed to move the price as long as adequate notice is given. I'm afraid the only option is to ditch and switch elsewhere. You're supposed to get thirty days notice of yen changes some of you saying you got less.. We're going to check it out."
Octopus Energy's Defence of the Price Adjustment
Octopus Energy chief executive Greg Jackson defended the company's actions, asserting that no rules have been broken and emphasising that the tariffs remain "very cheap". He commented: "Whilst rises are painful and we work very hard to avoid them (you can look back and see very few over the years on these tariffs) – these tariffs are still very cheap – typical users on this tariff will have a blended rate of around 18.3p/kWh – around 20% below the Price Cap, and the more they charge their car the bigger the saving."
Jackson addressed timing concerns: "In terms of 'reviewed every three months' – although the price was changed less than three months ago – that was simply passing through the Government cut, in full. We haven't changed the price ourselves for four months (Octopus Go) and longer (for Intelligent Octopus Go) – and in terms of notice period, Ofgem removed the 30 days (we assume because it sometimes caused people to leave good value tariffs)."
He added: "We aim for about two weeks – slightly less this time, as we didn't want to email over the weekend when there'd be less support available. And perspective is important – an EV on these tariffs is about five to eight times cheaper per mile than a petrol car, despite the fact the UK has such high electricity prices."
Further Reactions and Clarifications
Martin Lewis issued a follow-up reply: "Thanks for the reply Greg. Interesting to read. I must admit I didnt know Ofgem had ditched the 30 day notice rule, I think that's a shame. Clearly there are still some unhappy customers though. We're going to cover this in MSE news and will include your response in full."
On X, Octopus Energy's official account responded to another customer inquiry, explaining: "That 3.49p off-peak rate on Intelligent Octopus Go (IOG) happened because we took the government’s recent levy cuts (about £130 off a typical bill) and baked them directly into those smart windows."
The account continued: "For those on a variable tariff like Flexible Octopus, your price is protected by the Ofgem Price Cap, which is currently falling but at a different pace because it averages out wholesale costs over several months to avoid sudden spikes. Each tariff reflects a different way of buying energy, either locking it in early or following the market's 'weighted average' under the cap."
Background on Octopus Go Tariffs
Octopus Go is a fully renewable energy plan offering five hours of inexpensive, fixed-rate electricity daily from 12:30 AM to 5:30 AM. Specifically designed for electric vehicle (EV) drivers, it accommodates all types of cars and chargers. With prices ranging between 6.99p and 8p per kWh, significant savings are possible, reducing overnight charging costs to approximately 3p per mile, ideal for home and vehicle charging.
