Last reviewed: May 2026
Quick answer: Octopus Energy is major supplier in the UK energy market. Founded 2015. Acquired Shell Energy and Bulb customer book. Known for time-of-use tariffs (Cosy, Go, Flux). All UK domestic and business energy suppliers are regulated by Ofgem under the Gas Act 1986 and Electricity Act 1989.Octopus Energy: Founded 2015. Acquired Shell Energy and Bulb customer book. Known for time-of-use tariffs (Cosy, Go, Flux). Segment: major supplier.
Ofgem regulates all UK energy suppliers, including Octopus Energy. The Energy Price Cap applies to domestic standard variable tariffs and prepayment; it does not apply to business energy or fixed-term domestic tariffs. Micro-businesses (under 10 employees and small consumption thresholds) have some consumer-style protections under the Standards of Conduct.
Octopus Energy tariffs and product range
Octopus Energy offers the standard mix of fixed-term and variable tariffs. Fixed-term contracts lock the unit rate (pence per kWh) and standing charge (pence per day) for the term (typically 12 or 24 months). Variable tariffs track wholesale prices through Ofgem-approved formulas.
Where the supplier offers time-of-use tariffs (cheap off-peak windows), the savings can be substantial for customers who can shift usage: EV charging overnight, heat pump operation during cheap periods, dishwasher / washing machine on cheap-rate slots.
For business energy specifically, half-hourly metered sites (high-consumption customers) get individually negotiated contracts; small business sites use standard tariffs similar to domestic structure.
Octopus Energy bill structure
A Octopus Energy bill has: unit rate (pence per kWh, multiplied by consumption); standing charge (pence per day, multiplied by days in the bill period); VAT (5 per cent on domestic; 5 per cent for small business under low-use threshold, 20 per cent above); Climate Change Levy for business (around 0.775 pence per kWh electricity, 0.583 pence per kWh gas in 2024-25).
Domestic and small business bills also reflect Renewable Obligation, FiT, ECO and other policy cost recovery built into the unit rate. The Ofgem bill breakdown shows the wholesale cost vs network cost vs policy cost vs supplier margin.
Where Octopus Energy offers paperless billing, the PDF is normally available through the online account. Quote your account reference on any payment to ensure it credits correctly.
Switching to or from Octopus Energy
Domestic switching is usually 5 working days from confirmation under the Faster Switching Programme. The new supplier handles the change; you do not need to contact Octopus Energy to cancel (though it is sensible to confirm cancellation directly).
Business energy switching is more complex: most contracts are fixed-term with end dates. Switch at renewal; mid-contract switching normally incurs termination fees. Use a "letter of authority" to a broker for managed switching.
Brokers and consultancies negotiate business energy contracts for commission built into the unit rate. Under Ofgem rules, the supplier must disclose broker commission; ask for the breakdown before signing.
Complaints and the Energy Ombudsman
If you have a complaint about Octopus Energy, complain in writing first. Under Ofgem Standards of Conduct, the supplier has 8 weeks to issue a final response (or sooner if they accept the complaint).
If unsatisfied or no response in time, complain free to the Energy Ombudsman (energyombudsman.org). The Ombudsman handles domestic and micro-business complaints; larger businesses have access to alternative dispute resolution.
The Energy Ombudsman can require Octopus Energy to correct the bill, apologise, and pay up to £10,000 compensation. Decisions are binding on the supplier if you accept them.
Smart meters and prepayment
Octopus Energy should offer smart meter installation free of charge under the smart meter rollout (target completion was 2025 but extended). Smart meters enable time-of-use tariffs, accurate billing without manual reads, and (for prepayment) easier top-up.
Prepayment customers have been historically charged more per unit; the 2022-23 reforms equalised standing charges and introduced specific protections. Prepayment can be moved to credit billing on request and credit check.
Vulnerable customer protections under Ofgem rules require suppliers to identify and support vulnerable households (Priority Services Register). Sign up through Octopus Energy or any energy supplier.
Where to get further help and how to escalate
If the council cannot resolve your Council Tax issue through its own complaints process, you can escalate to the Local Government and Social Care Ombudsman, an independent body that investigates complaints about local councils. The Ombudsman is free to use and does not require legal representation.
For independent debt advice on Council Tax arrears, free help is available from Citizens Advice (national phone line, webchat and in-person service), National Debtline (free phone line and webchat run by the Money Advice Trust) and StepChange (free phone line and online advice). All three can speak to the council on your behalf with your written authority.
For premium-rate phone number complaints, the Phone-paid Services Authority handles regulation of premium rate services in the UK. For Council Tax scams or fraudulent demands, report to Action Fraud, the UK national reporting centre for fraud and cybercrime.
If you are facing enforcement and need to pause the collection process to get advice, the Breathing Space (Debt Respite Scheme) provides up to 60 days of legal protection from creditor action while you work with a debt adviser. A separate Mental Health Crisis Breathing Space lasts as long as you are receiving treatment for a mental health crisis, plus 30 days afterwards.
The council must, under the Equality Act 2010 and the Public Sector Bodies (Websites and Mobile Applications) Accessibility Regulations 2018, make reasonable adjustments for residents with disabilities. Ask for the format that works for you (large print, audio, Braille, BSL interpretation, plain English) if the standard channels are not accessible.
If you have moved house recently and you are unsure whether the old or the new council is the right one to contact, check both: each council's online "Council Tax when you move" page sets out the date from which it considers you liable. The old council closes the account at your move-out date and the new council opens an account from your move-in date; the two are normally the same day, and any gap is dealt with by the owner of the empty property.
For Council Tax questions specific to your circumstances (self-employed income, disability registration, recent bereavement, complex household arrangements, foster placements, military service or shared custody), ask the council in writing or by phone rather than relying on a general guide. The council's benefits team handles individual assessments and can give a binding answer for your account.
If the council's decision is final and you disagree, the Valuation Tribunal for England (and the equivalents in Wales and Scotland) hears appeals on liability and banding free of charge. You do not need legal representation; the tribunal is designed for unrepresented applicants.
Frequently Asked Questions
Is the Energy Price Cap relevant to UK business energy?
No. The Energy Price Cap applies only to domestic standard variable tariffs and prepayment. Business energy is deregulated; prices reflect wholesale market conditions plus supplier margin, network and policy costs.
What is the Climate Change Levy?
A UK tax on energy used by business and public sector. Around 0.775 pence per kWh electricity and 0.583 pence per kWh gas in 2024-25. Reduced rate available under Climate Change Agreement (CCA) scheme for energy-intensive businesses.
Can I switch business energy supplier mid-contract?
Normally no - fixed-term business contracts incur termination fees. Switch at renewal. Use a letter of authority to a broker for managed switching at the renewal window.
What is the Energy Ombudsman?
Independent free dispute resolution for domestic and micro-business energy complaints. Can require correction, apology and compensation up to £10,000. Larger businesses use alternative dispute resolution schemes.
Where can I get advice on UK business energy contracts?
A regulated energy broker or consultant can negotiate on your behalf (commission built into unit rate; Ofgem requires disclosure). Trade bodies and the Energy Ombudsman publish independent guidance.
How We Verified This
UK business energy framework verified against Ofgem Standards of Conduct, the Gas Act 1986, the Electricity Act 1989, the Climate Change Levy framework, and the Energy Savings Opportunity Scheme (ESOS) Regulations 2014.
