How to get free electricity in the UK

I do know what you’re considering: what is that this ridiculous clickbait headline all about? Well, a few weekends in the past, I charged my electrical automotive, cooked lunch in my oven, and washed my garments completely for free over a number of hours. Last weekend, my electricity value lower than 8p per kWh to do the similar factor. On common, I’m at present saving 40 % on my electricity payments in contrast to the extortionate capped price that most individuals in the UK are pressured to pay proper now.

So, how? Octopus Energy, and I would like everybody to find out about it.

I’ve obsessed over my electricity utilization over the previous few months thanks to a mixture of the UK’s power market costs and shopping for a brand new electrical car. A good friend advisable Octopus Energy’s Agile contract, which supplies variable pricing each half-hour primarily based on wholesale charges. He had been utilizing all of it winter with large financial savings, as wholesale electricity costs have began to drop in the UK in latest months. In 2023, Octopus’ Agile costs have dropped far beneath the Energy Price Guarantee subsidy that the UK authorities launched to cap the most shopper costs for electricity after wholesale costs surged following Russia’s invasion of Ukraine.

Octopus Energy points its 30-minute charges every single day at 4PM so you possibly can see when the finest occasions are to use your dishwasher, washer, oven, or cost an electrical automotive. Peak charges between 4PM and 7PM are sometimes the normal charges of 34p and even 35p per kWh, however exterior of these occasions, it has averaged at round 20p per kWh in latest months for me personally.

You can save a bundle of cash when you can shift your power utilization exterior the peak window. Even when you can’t, you’re nonetheless going to save as a result of, for round 20 hours of the day, the Agile charges are far beneath the commonplace ones.

A regular price for electricity throughout UK suppliers proper now could be round 34p per kWh, with a day by day service cost of up to 50p. These charges and repair expenses range barely per supplier, however the overwhelming majority of individuals in the UK are at present paying in extra of 30p / kWh until they’re on a set contract with decrease charges. In July, the cap in the UK will probably be set at 30p per kWh, a price that falls beneath the present Energy Price Guarantee and sees the Ofgem regulator return with its personal worth caps.

But this worth cap continues to be far past what I’m at present paying. Over the previous 28 days, I’ve used a median of 16kWh per day at a price of 16.9p per kWh as a substitute of the 34p per kWh I’d have paid on a regular price. That’s a saving of practically 50 % in contrast to what most individuals would pay for the similar quantity of electricity.

So why have I and plenty of others not heard about this till just lately? Variable price tariffs are dangerous. Octopus Energy markets Agile as a tariff that’s splendid for individuals with EVs, storage heaters, or anybody who can shift their power utilization exterior of peak occasions. But it additionally warns that costs can spike up to 100p per kWh at any time, 3 times greater than the commonplace charges proper now. That sounds scary, but it surely’s one thing that not often occurs. In truth, it hasn’t peaked previous greater than 40p per kWh in any respect in most locations in the UK in 2023.

That’s largely as a result of wholesale costs have been dropping, creating extra secure averages and moments of plunge pricing the place you get hours of free electricity. You can see in the chart above that pricing has dropped to 0p per kWh or beneath a number of occasions over the previous six months on Octopus Energy Agile.

Despite the reductions seen in latest months, it’s also possible to see a sustained spike for many of December, the place the most costs shot up to 80p per kWh, a really costly price that prospects would have seen largely throughout the peak 4PM to 7PM window. If wholesale costs proceed to stabilize and drop, hopefully we received’t see a repeat of this once more this winter. If costs do shoot up, you possibly can all the time simply instantly change again to the commonplace price, which will probably be capped by Ofgem’s assure.

This volatility does make it arduous to advocate such an power tariff to everybody in the UK, which is one more reason most individuals received’t have heard about Agile. Consumer advocate Martin Lewis, higher often called the “Money Saving Expert,” has been pushing the authorities frequently to assist with electricity costs, however he’s not often advisable individuals change to variable price tariffs. Consumers in the UK have been trying to Lewis’ suggestions all through this power and value of residing disaster, however he did spotlight Octopus Energy’s “clever” Agile tariff in April. Now that we have now six months of secure information, I feel it’s time to begin recommending Agile till we have now respectable mounted charges again on the market.

If you’re savvy sufficient to observe the day by day costs, then you definately’ll profit tremendously right here. I’ve personally was an Octopus Energy salesman with my family and friends, as the firm even affords a referral program the place you break up £100 with a good friend you advocate to the service. I exploit the glorious Octopus Watch iOS app for alerts on when costs plunge and to see worth charges over 24-hour durations, however Octopus additionally publishes these in its personal cellular app and web site.

You will want the newest SMETS2 good meter (some SMETS1 are supported), although, to find a way to routinely ship meter readings to Octopus Energy and use Agile. If you don’t have a wise meter, you possibly can nonetheless change over, and Octopus will organize for a meter set up. Octopus has additionally began advertising and marketing its Tracker tariff just lately, which is analogous to Agile however has extra restrictions on how lengthy it takes to exit out if costs go the unsuitable means.

It’s additionally simply refreshing to use a utility firm that’s environmentally pleasant and has nice customer support. In an more and more inefficient and damaged UK power market, Octopus Energy is means out forward supplying inexperienced power with one among the finest software-as-a-service merchandise I’ve ever seen in the UK.

Eventually, I hope to automate a lot of this with good residence tech and shops to restrict the time I’m monitoring charges. But figured I’d share this tip proper now in case it helps prevent some nice British kilos.