On 2 October 2026 Octopus Energy replaced its fixed tariffs. The 12- and 18-month fixes that went on sale on 11 September were withdrawn, and new versions of both are now on sale. The 12M is almost unchanged. The 18M got about £11 a year cheaper, which puts it within a few pounds of the price cap.
In short
For a typical home the new 18M Fixed averages about £1,727 a year, just £4 above October's £1,723 cap. The new 12M Fixed is about £1,819, £96 above it. Both are well below the roughly £2,060 that January's cap is forecast to reach.
The new rates
Unit rates per kWh, national averages of the 14 regional Direct Debit rates, including VAT (0% on electricity, 5% on gas). Typical year uses 2,500 kWh electricity and 9,500 kWh gas. Rates vary by region, so your quote is the real number. The previous versions cost about £1,817 (12M) and £1,738 (18M).
Both fixes have slightly lower standing charges than the cap. The 12M's unit rates are higher on both fuels, so it compares best for lower users. The 18M's electricity unit rate is actually below the cap's; its gas unit rate is a little above.
Against January's forecast
The real comparison is with what comes next. Forecasts for the January 2027 cap range from Cornwall Insight's £1,999 to British Gas's £2,115, with about £2,060 (+20%) in the middle. Against that midpoint the 12M works out about £240 a year cheaper and the 18M about £330 cheaper. Even against Cornwall's lower £1,999, they are about £180 and £270 cheaper.
12 or 18 months?
- The 18M is cheaper but ties you in longer. If wholesale prices fall back in 2027 you can't benefit without paying £150 to leave on dual fuel (£75 per fuel). The 12M costs £100 to leave.
- No supplier can charge an exit fee in the last 49 days of a fix.
- VAT still applies to fixes. Electricity is at 0% VAT until 31 March 2027 and is due to go back to 5% from 1 April. That would add about £44 a year to the 12M (£42 on the 18M) for the months after March.
If you'd rather not commit, Flexible Octopus follows the cap and has no exit fee. Our guide to fixing or staying variable works through the choice, and the savings calculator puts the rates against your own usage. Either way, switching through our link gets you £50 credit; here's how it works.
Sources: Octopus 12M Fixed product data, Octopus 18M Fixed product data, Ofgem and Cornwall Insight. Figures last checked 2 October 2026.
The full explainer on this subject: Octopus 12M Fixed guide. More updates on our energy news page.