- On July 26, 2017
- In News
- By Ittria
- 0 Comments
As reported by The Guardian, Ittria’s preferred energy supplier, Octopus Energy, is hoping to win back consumer trust in the industry with the launch of a tariff that shows how much profit it is making from customers.
The article explains:
Octopus Energy said its new deal would use an app to display the profit margins it made on an account, alongside the wholesale prices it paid for electricity and gas.
The big six energy suppliers – British Gas, EDF, E.ON, Npower, Scottish Power and SSE – have been criticised for being slow to pass on falling wholesale costs, while being swift to impose rising prices on customers.
Npower blamed wholesale prices when it announced the biggest increase in the recent round of price hikes, but the industry regulator, Ofgem, has said the rises have been hard to justify.
Greg Jackson, founder and chief executive of Octopus, which has attracted 90,000 customers since launching a year ago, said he expected transparency to become an increasingly important selling point. “The debate over price rises – where the regulator is saying there is no justification for them and the big six are saying there’s no choice – it’s hard for people to know what’s true,” he said. “This tariff is the first guarantee that you won’t get ripped off.”
The cost of the dual fuel tariff – for electricity and gas – would be about £907 a year based on Friday’s wholesale prices, compared with the £1,044 to £1,160 the big six suppliers are charging customers on the most commonly used deals.
The Octopus price will change daily to reflect how much the company is paying to buy electricity and gas from the market. The app will show the profit margin the firm is making, which it expects to be about 10% rather than the 30% the bigger suppliers make.
You can read the full article here: https://www.theguardian.com/business/2017/may/08/octopus-energy-tariff-customers-see-profit-margins-gas-electricity?CMP=share_btn_link