The money-saving tip comes after Ofgem lifted its price cap
Octopus is the UK’s largest energy provider(Image: Getty)
Octopus Energy has revealed how customers can get an automatic £93 reduction on their energy bills with one simple change. The company is the UK’s largest energy provider, serving one in four households with 7.3 million UK customers.
The energy provider has announced that customers who settle their accounts via Direct Debit will get discounted tariffs, with those making the change saving an average of £93 annually. Customers without Direct Debit arrangements end up paying more as it creates extra administrative work for suppliers.
Octopus says it believes it’s unfair to make all customers pay the extra expense, so it provides reduced rates to those who opt for Direct Debit payments, which are less pricey for the company to handle.
Any customers who change their payment method will see their bills automatically recalculated, resulting in yearly savings of £93, reports the Express. For money-saving tips, sign up to our Money newsletter here.
The supplier clarified: “A steady monthly Direct Debit is our most popular way to pay, because it allows you to spread your payments evenly across the 12 months, rather than paying less in summer and much more over the winter.
“Because this method costs us less in admin, your unit price is less, saving the average home on our variable tariff around £93 a year.”
This money-saving advice follows an increase to household energy bills from October when Ofgem lifted its price cap.
The cap rose by 2% – or £35 – from the previous £1,720 per year for a typical household in England, Wales and Scotland to £1,755. The price cap restricts the amount an energy supplier can charge for units of gas and electricity, and also affects the standing charge, which is a daily cost per fuel type set by Ofgem.
However, it’s important to note that the cap isn’t the absolute maximum price households will pay for energy as it is based on usage, so those using more energy will pay more.
