Octopus Energy has introduced exit fees on fixed-price tariffs and raised prices, citing turmoil in energy markets due to the Middle East conflict. The UK's largest household energy supplier said wholesale gas prices have roughly doubled since the start of the conflict between Iran and US-Israeli forces.
Chief executive Greg Jackson told Times Radio that fixed tariffs are based on buying a year's worth of energy upfront, and higher wholesale costs are being passed on. He noted that new fixed tariffs are now about £100 a year more expensive than before the conflict, and some suppliers have withdrawn such deals entirely.
According to data from Uswitch, the number of fixed deals available has more than halved in the past week. Most UK households remain on variable tariffs protected by the energy price cap, which is set to fall in April but could rise by around 10% from July due to higher gas prices.
Jackson stressed that Octopus's exit fees are in line with other suppliers, and the company has had to adjust its offerings as Iran effectively closed the Strait of Hormuz, which transports 20% of the world's oil and gas, and Qatar indicated it cannot honour gas delivery contracts.
