Agile Octopus is a smart energy tariff provided by Octopus Energy. Much like its popular tracker tariff, this smart tariff directly tracks the price of wholesale energy, but with one crucial difference; rather than updating the energy price once a day, it updates every half an hour. While it is only available to existing Octopus customers, new customers can join Octopus Energy on a standard tariff and request to make the switch, so long as they have a smart meter.
In this article, we explain how the Agile Octopus energy tariff works, the pros and cons and whether it is worth switching to the Agile Octopus tracker tariff. For the latest on the best and cheapest fixed-price energy tariffs, check out our regularly updated article 'What is the cheapest fixed-price energy tariff? - Best deals compared'.
Agile Octopus energy tariff key features
- Tariff tracks the wholesale price of electricity, updating every 30 minutes
- 100% green energy
- Tariff is only open to existing customers
- 12 month fixed-term tariff, but you can exit for free (though you then cannot return to the tariff for 30 days)
- Includes 'Plunge Pricing' which lets you take advantage of negative price events, meaning you could get paid for the energy you use
- An electricity-only tariff
- Only open to smart meter customers (non-smart meter customers can sign up and receive a free smart meter installation, but the switch will take longer than for existing smart meter customers)
- Rates can vary depending on the region you live in
- Maximum daily price cap of 100p/kWh for electricity
How does the Agile Octopus energy tariff work?
The Agile Octopus energy tariff tracks the wholesale price of electricity every 30 minutes. So, instead of paying an ongoing 'fixed' rate for electricity, the rate fluctuates every half an hour based on the price of wholesale energy at that time. Wholesale energy prices can be significantly cheaper outside of the typical energy 'rush hours', which tend to be between 6am to 10am and 4pm to 7pm. Those who can shift their energy usage can take advantage of cheaper electricity outside of the busiest periods, potentially saving money on their energy bills.
Interestingly, the Agile Octopus tariff includes 'Plunge Pricing' a feature that allows you to get paid for taking excess energy off of the grid. Octopus will send alerts whenever the prices fall below zero for you to take advantage. According to Octopus data, unit prices dropped below 2p per kWh 163 times between July 2020 and July 2021.
It is worth remembering, however, that energy prices can fluctuate wildly, so while you may end up paying a rate far lower than the current energy price cap – especially when wholesale prices are low – you won't be protected by the energy price cap should wholesale prices quickly rise.
How does the Agile Octopus tariff compare to the energy price cap?
The latest energy price cap figure currently stands at £1,928. This is the cost of the annual energy usage for the average dual-fuel household. It is due to fall from £1,928 to £1,690 from 1st April 2024, a drop of around £19.83 per month.
Wholesale electricity prices have fluctuated wildly in recent years, but based on recent data, those who have shifted their energy usage to quieter times would have saved around 30% in energy over the last few months with the Agile Octopus tariff, when compared to the energy price cap. Octopus says that the Agile Octopus tariff is "Perfect for electric vehicles, storage heaters, or anyone who can shift their electricity use outside of peak times".
Will I need a smart meter to switch to the Agile Octopus energy tariff?
Yes, the Agile Octopus energy tariff is only available to those with a smart meter. You should be able to get the tariff if you have a second-generation (SMETS2) meter and it may work for some types of first-generation (SMETS1) smart meters. If you are an existing Octopus customer and do not currently have a smart meter, you'll need to be willing to get a smart meter in order to switch to the tariff. You can make a smart meter installation request and you will be added to a waiting list. Octopus Energy will contact you when an installation is available in your area and you can book an appointment via the link in the email. The meter will be installed for free, however, you will need to start on one of Octopus Energy's standard tariffs until your smart meter is up and running, which could take a couple of weeks.
Can you leave the Agile Octopus energy tariff?
Yes, while there are no exit penalties for leaving the Agile Octopus energy tariff, it could take up to two weeks to complete a switch to an alternative tariff. Additionally, if you decide to leave the Agile Octopus energy tariff, you will not be allowed to switch back to it for at least 30 days.
Pros and cons of the Agile Octopus energy tariff
Pros
- The tariff tracks the price of wholesale electricity every half an hour, so you will benefit from cheaper energy when wholesale prices are low
- Those who do not have a smart meter can have one installed and switch to the tariff at no cost
- Agile Octopus is capped at a maximum daily price of 100p/kWh for electricity
- Plunge pricing allows you to get paid to take excess energy off the grid
Cons
- The tariff tracks the price of wholesale electricity every 30 minutes so you will be hit with higher energy costs when wholesale prices are high
- Although the price of the tariff is capped, the cap is much higher than the current energy price cap
- Those without a smart meter will have to wait a few extra weeks before they can access the tariff
- If energy prices are high and you decide to leave, it could take up to two weeks to switch (and you will not be allowed to return to the tariff for 30 days)
- The tariff is electricity-only, meaning customers will need to select an alternative tariff for their gas usage
How to switch to the Agile Octopus energy tariff
The process of switching to the Agile Octopus tariff will depend on whether you are already a customer. We explain how to switch to the Agile Octopus tariff in both scenarios below:
How to switch to Agile Octopus
Follow the below steps to switch to the Agile Octopus tracker tariff:
Step 1
Make sure you are an existing Octopus customer. If you are not an existing customer you'll first need to sign up. Once complete, you will join on its standard tariff and you'll need to follow the next steps to move onto Agile Octopus.
Step 2
Ensure you have an eligible smart meter. Octopus can connect to second-generation meters (SMETS2) and some types of first-generation (SMETS1) smart meters. If you don't have a smart meter yet, read the section above titled 'Will I need a smart meter to switch to the Agile Octopus energy tariff?'.
Step 3
Apply for the tariff and wait to be connected. It can take around 14 days for Octopus to connect to a smart meter and that includes a meter that has recently been installed by them as well as those being taken over once you switch to them.
Step 4
Once it has confirmed that you are connected and Octopus is receiving 30 minute readings from your smart meter, you will be sent the terms & conditions via email, which you will need to accept to progress.
Step 5
Once the terms & conditions are accepted, your tariff will change automatically to Agile Octopus and you should see the change immediately in your online account.
