Octopus Energy has rolled out the UK’s first fully agile energy tariff for small and medium-sized enterprises (SMEs), offering businesses the opportunity to dramatically reduce their energy costs. With prices shifting every 30 minutes to reflect real-time energy demand, the “Shape Shifters: Agile” tariff aims to encourage smarter energy consumption and contribute to a greener energy future.
Real-Time Pricing Offers Flexibility
The Shape Shifters: Agile tariff allows businesses to take advantage of fluctuating energy prices throughout the day, with rates updating every 30 minutes. These price changes reflect real-time fluctuations in wholesale energy costs, meaning businesses pay less when demand is lower and renewable energy sources are abundant.
By offering a level of flexibility previously unavailable to small businesses, Octopus Energy enables customers to see the next day’s prices in advance via a dedicated online portal. This means companies can plan their energy usage more efficiently and shift operations to take advantage of cheaper periods, especially when the grid is greener.
According to Octopus Energy, businesses that adapt their energy habits can save up to 25% annually on their energy bills, with potential savings of thousands of pounds per year. The tariff encourages customers to avoid using energy during peak hours (typically between 4-7 pm), when demand and prices are highest. This flexibility is particularly beneficial for businesses that can alter their usage patterns, such as those with flexible working hours or low-energy operations.
A Step Towards Sustainable Energy Consumption
The “Shape Shifters: Agile” tariff also has a green edge, promoting the use of energy when the grid is powered by cleaner, renewable sources. National electricity demand peaks in the evening, often outstripping the supply of green energy. As a result, more fossil fuels are used to meet this demand, creating higher carbon emissions.
By shifting energy usage to times when green energy is more abundant, businesses can help balance demand and reduce overall carbon footprints. In addition, Octopus Energy’s dynamic pricing model incentivises businesses to use energy when it’s cheaper and greener, aligning their operations with the broader goal of reducing the country’s reliance on non-renewable resources.
Zoisa North-Bond, CEO of Octopus Energy for Business, emphasised that businesses are increasingly eager to lower their energy bills. “Many businesses are struggling with energy costs and are keen to use energy outside peak times to save money,” she said. “Octopus has pioneered smart tariffs for years, and we’re proud to unlock even more opportunities for them through Shape Shifters Agile to tap into the greenest, cheapest power available.”
In essence, the tariff reflects a growing awareness of the environmental impact of energy consumption, enabling businesses to participate in the transition towards a low-carbon economy while benefiting financially.
How the Tariff Helps SMEs Save Money
The “Shape Shifters: Agile” tariff is designed with SMEs in mind, providing a practical way for smaller businesses to reduce their energy costs without major overhauls to operations. Octopus Energy’s other tariff, Shape Shifters: Trio, already provided businesses with cheaper energy rates during designated off-peak times, such as during the night. However, the Agile version goes a step further, offering real-time flexibility with more granular price changes.
One business that has benefited from the new tariff is Milton Chippy, a chip shop in Stoke-on-Trent. According to Parmjit, the owner of Milton Chippy, the tariff has already helped his business save hundreds of pounds by adjusting when energy-intensive equipment, such as deep fryers, is switched on. He told Birmingham Live: “Shape Shifters Agile has been a real boost for us. It’s super simple and keeps the deep fryers running without frying our budget.”
The flexibility of the Shape Shifters: Agile tariff, with its ability to accommodate energy usage based on real-time prices, could be a game-changer for businesses looking to maximise energy savings. Moreover, Octopus Energy is providing full transparency with prices available through its portal and API, so businesses can keep track of energy costs and adjust usage patterns accordingly.
