M&S Energy announces new partnership with Octopus Energy

M&S Energy, which currently supplies energy to households through a partnership with SSE, announced last week that its nine year agreement with the big six firm will come to an end in September 2018.

The retailer says its new tie-up with smaller supplier Octopus Energy - which currently has around 200,000 customers - will start on 29 September.

Similar to its relationship with SSE, M&S Energy will provide energy under what's known as a 'white label' agreement with Octopus - that's where the energy and customer service is supplied by one provider but sold under another's brand.

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Will it be a good deal?

M&S Energy haven't announced any details on its prices once the partnership starts.

However, Octopus Energy's cheapest deal is currently its standard variable tariff - called 'Flexible Octopus' - costing a typical household £955/year.

This is around £105/year more that the market's cheapest - though it's less than M&S Energy's last fix under its agreement with SSE (now withdrawn), which cost a typical user £1,148/year. It would also be around £240/year cheaper than its current standard tariff under the SSE agreement.

Octopus Energy also beats SSE on service, coming joint top in our latest customer service poll in May 2018 - with 93% rating it 'great' and just 1% 'poor' (from 245 votes). In comparison, SSE came seventh, with 53% rating it 'great' and 16% 'poor' (from 175 votes).

The tariffs, under the new agreement with Octopus Energy, will also continue to offer 100% renewable energy.

What do M&S Energy and Octopus Energy say?

Jonathan Hazeldine, Head of M&S Energy, said: "As we continue to transform M&S we have chosen Octopus as a new strategic partner for M&S Energy. Octopus’ values of responsible and transparent pricing and digital-first customer service mirror our ambitions for the business.

"Together, we can challenge the traditional energy market and bring green energy to millions of households at a competitive and fair price. We believe they are the best partner to help transform and grow M&S Energy into a digital, progressive and commercially competitive arm of M&S."

Greg Jackson, CEO Octopus Energy, said: "I’m thrilled. M&S’s choice of Octopus for this vital service is a great vote of confidence in our vision for energy. Fair pricing without annual switching, renewable electricity and incredible customer service.

"M&S will be using the digital technology we’ve built, enabling dramatically better customer experience online, and helping drive the M&S digitisation strategy."