Octopus Energy issues £200 warning as customers given ‘good news’ | Personal Finance | Finance

Octopus Energy has issued a £200 warning to customers following ongoing conflict in the Middle East.

US-Israeli strikes on Iran, followed by retaliatory strikes across the region, has caused global gas prices to spike, driving UK wholesale energy prices up by around 50%. The conflict means it currently costs energy suppliers more to buy energy to supply to customers, which has prompted UK suppliers to pull a raft of fixed-price tariffs from the market, or reprice them so they’re more expensive. According to data from price comparison website Uswitch, the number of fixed deals has more than halved since last weekend, while those remaining have gone up in price, meaning customers now have fewer options to switch and save.

Octopus Energy has warned that its latest fixed prices have already gone up by around £200 this week and could rise again depending on what happens in the Middle East.

Households on fixed deals don’t need to do anything as prices remain locked in for the duration of their fix, but those on flexible tariffs, or nearing the end of a fixed deal, are being urged to consider their options.

Octopus Energy said: “None of us have a crystal ball that shows how long this conflict will last, so we can’t know for sure what’s best.

“If you’re on a fixed tariff with several months left to go, then it might be best to stay on that, as otherwise you’ll be paying more in the short term.

“If you’re on Flexible Octopus, or near the end of your fixed tariff and you’re worried about lasting conflict in the Middle East, fixing for 12 months means you’ll be paying around the same as the energy price cap throughout 2025 – so it may not be a bad deal to protect against future increases.

“Bear in mind that our latest tariffs do have exit fees, so that’s something to consider carefully if you might need to move tariffs within the next 12 months.”

Energy experts have warned that if wholesale energy prices remain high, Ofgem’s price cap for July will almost certainly go up, meaning fixing now may be a better money-saving option, but it is impossible to predict energy prices that far ahead, so switching now does carry an element of risk.

But the energy price cap will provide protection for households until the start of July, regardless of developments in the Middle East.

And in a further piece of “good news” for customers, around £150 will be cut from the average household bill from April 1 as a long-running energy efficiency programme introduced under the Tories is scrapped.

Major UK energy suppliers, including Octopus Energy, British Gas, E.ON, OVO and EDF, have all confirmed plans to pass on savings to all customers from April, meaning a reduction in household energy bills.

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The saving is a reduction of your electricity and gas unit rates, so how much you save depends on what you have and how much you use.

According to Octopus Energy, households on a variable tariff at the max energy price cap will see savings equivalent to around £117 a year for a typical medium-sized house, while those on a fixed tariff will gain savings equivalent to around £130 per year for a typical medium-sized house.

Octopus Energy added: “Our latest fixed prices have already gone up about £200 in the last few days (as of 8pm 4/3/26). It’s impossible to predict the future: they could go up more, or they could come down – it largely depends on what happens in the Middle East.

“One bit of good news: from April 1st, the government are cutting some levies from your energy bills – around £130 cost saving for a typical home – which helps to counteract the impact of higher wholesale prices.”