Octopus Agile – is it now an energy tariff worth switching to?

While rates are cheaper right now, they can spike suddenly if wholesale rates rise

As the Agile Octopus tariff tracks daily wholesale costs, it gives quicker access to falling prices – but if wholesale starts to climb, so too will the rates you pay. 

Currently, energy prices are controlled by regulator Ofgem's Price Cap and the Government's Energy Price Guarantee (EPG). These only change every three months, so there's a big time-lag between changes in wholesale prices and any change to the actual rates we pay for energy. For full info, see Martin's briefing on how wholesale energy prices affect rates.

With Agile Octopus, falling wholesale prices are reflected in the rates you pay almost immediately, and with wholesale rates dropping back massively from all-time highs over the last month or so, now is the perfect time to examine the tariff.

Yet this works both ways – if wholesale prices were to shoot up, as they did last autumn to all-time highs, the rates you pay could shoot up too. 

Though Agile Octopus has a 100p/kWh maximum cap, so if prices do rise rapidly, there is a limit on what you would pay for each unit of electricity you use. Plus, as we outlined earlier, while the EPG is still available you'll get the discount on this maximum rate, taking it down to around 66p/kWh.

If you're considering Agile Octopus, shift your usage out of peak hours to make the most of it

As prices change every 30 minutes, with cheaper rates at certain times of the day when nationwide demand is lower, if you can shift your usage outside of peak periods, the tariff could help you save even more. Yet if you need to use lots of energy during peak periods, you could end up paying more.

According to Octopus, due to volatile wholesale energy prices, it is currently only recommending the tariff to customers with solar panels, home batteries and electric vehicles (EVs) –  as these households may be able to more easily shift use outside of peak periods, or they need to use a lot of electricity overnight to charge their EVs. 

Who can get it and how to apply 

To get it, you'll need to do the following: 

• Step 1. For new customers only – switch to Octopus (existing customers skip to step 2). If you're not already with the firm, you'll first need to switch to Octopus' standard tariff. You can apply online, or give it a call.
  
  As Agile is an electricity-only tariff, you could switch just your electricity to Octopus' standard tariff, though you might prefer to have both your gas and electricity with the firm for ease. 
  
  
• Step 2. Get a smart meter if you don't already have one. You'll need to ask the supplier for one, then wait for it to be installed and for Octopus to connect to it – this should take a few weeks. If you already have one, and Octopus is already connected to it (so it can receive automatic meter readings), you can skip this step. 
  
  
• Step 3. Ask Octopus to move you to the Agile tariff. Contact it online, via email or on the phone and ask to be moved to the Agile tariff. You'll need to accept new terms and conditions and then you'll be moved across. If you're with Octopus for your gas supply, it will remain on the provider's standard tariff. 

Are there any other similar tariffs?

Alongside the Agile tariff, the supplier has the Octopus Tracker tariff – a gas and electricity deal that also tracks wholesale energy prices, but the rate you pay only changes once a day, rather than every half hour. 

However, the supplier has told us that there is currently a six-month wait time to join the tariff. You can sign up to the waiting list if you're interested, just remember to check what rates are being offered when you finally can join, as they could have changed dramatically.

On the Octopus Tracker tariff, in the Midlands region between 13 and 19 February, the rates were between about 22p/kWh and 26p/kWh for electricity, with a standing charge of 45.24p a day. Gas rates were around 6p/kWh, with a standing charge of 25.56p a day.