OnDemand WTP Pricing Research

Octopus Energy embraces negative pricing with ‘plunge’ tariff | Clean Energy News

“Indeed, if the wholesale price goes below 0p/kWh, Octopus Agile will actually pay you to take the unwanted energy from the grid. As renewable energy production grows these events are only going to become more frequent.”

The offer – using 100% renewable electricity – is made possible by Octopus’ dynamic pricing structure, which uses half hourly energy prices set daily at 4pm for the following 24 hours. Prices are tied to public wholesale costs to ensure full transparency, with charges then calculated for each customer using the half-hourly consumption data from a smart meter.

Customers will be alerted to ‘Plunge Pricing’ via text message, email or via their online dashboard, and once a month they will be sent a full breakdown of their half-hourly energy pricing and usage.

Negative pricing has been growing in regularity in the UK as more renewable generators have been added to the grid in recent years. The morning of 14 January saw system buy and sell prices fall below zero for four consecutive settlement periods, reaching -£68.43/MWh between 7-7:30am.

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Octopus Energy embraces negative pricing with ‘plunge’ tariff | Clean Energy News.