World's first local time-of-use wind tariff launched- a sign of things to come?

Renewable Energy the way forward

Fan Club

The two turbines, one based in Caerphilly, South Wales and the second based in Market Weighton, Yorkshire are named '#1 Fan' and '#2 Fan' and are set to be the first of many members of Octopus Energy's 'Fan Club', signalling Octopus's intentions to dive further into the generation market.

"Octopus Energy's first ever own brand turbines are now on the grid, and we've included the UK's first windy tariff to boot – we halve the price of electricity whenever the turbine is spinning fast. This is the first step in a huge plan for Octopus owning its very own generation and offering local wind tariffs across the country. It means we can begin producing the clean, green power we provide to customers ourselves and incentivise customers to use energy when it's the absolute greenest," said Zoisa Walton Director of Octopus Energy Generation.

Also read: Is 'Green Energy’ really good for the environment?

A new trend for energy suppliers?

With the energy supply market being highly competitive, it’s only a matter of time before other energy suppliers follow Octopus’ lead and offer similar tariffs.

There are now dozens of green energy tariffs on the market as companies try to entice the increasing number of consumers who list green energy as a key factor in choosing a tariff and energy supplier.

An Ofgem survey released last year showed that consumers who choose a new energy supplier solely for their green energy tariffs increased strongly from just 9% in 2019 to 19% in 2020 even during the Covid-19 pandemic.

More and more small energy supply companies are now offering green tariffs and are likely to follow Octopus lead when it comes to time-of-use wind tariffs. Smaller suppliers have an advantage in moving into this space as they are often more flexible and can offer cheaper tariffs than their larger competitors.

One thing is sure, green energy tariffs that provide flexible benefits to consumers are here to stay and will only grow in popularity.

Further Reading

No plans to lower VAT on energy bills despite Brexit promises says Treasury

British Gas recorded a 15% decline in electricity demand among UK business due to Covid 19 and more strike action on the way

Consumer complaints about Energy Billing rose in Q3 of 2020 says new Ofgem report

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