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The Octopus 12 Month Fixed tariff is designed for households that want their electricity and gas prices protected from market changes for one year. Instead of following each quarterly movement in the Ofgem price cap, customers agree to fixed unit rates and standing charges for the contract period. This guide reflects the tariff available on 10 July 2026. Octopus introduced the current product, Octopus 12M Fixed July 2026 v2, on 9 July 2026. Prices vary by postcode, meter type and payment method, so account quotations are definitive.
A fixed tariff secures the price charged for every kilowatt hour of electricity or gas. It also fixes the daily standing charge. Those figures remain unchanged for twelve months unless a tax or regulatory change requires an adjustment under the contract terms. Fixing a tariff does not fix the total bill. A household that uses more energy will still pay more. The monthly Direct Debit is an estimate intended to spread expected annual costs across the year. Octopus may recommend changing that payment if actual consumption creates excessive credit or debt.
The current tariff version became available on 9 July 2026 and runs for twelve months from the customer's start date. Octopus states that it fixes both unit rates and standing charges and carries an early exit fee of ยฃ50 for each fuel. A dual fuel customer leaving both electricity and gas early could therefore face ยฃ100 in charges. Someone taking electricity only would normally face one ยฃ50 fee. Customers should read the tariff information label shown during the switch because the exact contract presented at sign up governs the account. Octopus publishes prices by postcode rather than presenting one universal national rate. Electricity distribution costs differ across fourteen regional areas. Gas rates, meter arrangements and payment methods can also alter the quotation. A national headline can help comparison, but it cannot reproduce the cost for every household.
From 1 July to 30 September 2026, the Ofgem price cap represents an annual figure of ยฃ1,862 for a typical dual fuel household paying by Direct Debit. The average capped electricity rate is 26.11 pence per kilowatt hour, with a standing charge of 57.19 pence each day. The average gas rate is 7.33 pence per kilowatt hour, with a daily standing charge of 29.04 pence. These figures apply to standard variable tariffs, not to the Octopus fixed contract. They are useful as a benchmark, but the ยฃ1,862 figure is not a maximum bill. It is calculated using typical annual consumption of 2,700 kilowatt hours of electricity and 11,500 kilowatt hours of gas. The cap is due to be reviewed again for the period beginning 1 October 2026. A customer who fixes now will not receive an automatic reduction if variable prices fall, but will be protected if capped rates rise during the fixed term.
Octopus has often offered fixed tariffs without exit fees, but that is not the position for the July 2026 v2 product. The company explains that when a customer fixes, it buys energy in advance to support the promised price. If the customer leaves after wholesale prices have fallen, the supplier may be left selling that energy at a loss. Octopus reintroduced exit fees during volatile market conditions in March 2026. The company says the charge helps it offer lower fixed rates without adding the full cost of that risk to every customer. The fee matters when comparing a fixed tariff with Flexible Octopus or a smart tariff. A future saving must be large enough to recover any charge paid for leaving. Customers approaching the end of a fixed contract should remember that suppliers cannot normally charge an exit fee when a switch is arranged within the protected final period.
This tariff may suit a household that values predictable rates more than the possibility of benefiting immediately from falling markets. It can help budgeting through autumn and winter, when energy consumption is normally highest and unexpected rate increases have the greatest effect. It may also appeal to people who do not want to monitor daily or half hourly prices. Tracker and Agile can be cheaper during favourable market periods, but their rates move frequently and require greater tolerance for volatility. A conventional fixed tariff is simpler to understand. Renters or households expecting to move should examine the exit terms carefully. People planning to install an electric vehicle charger, heat pump, solar panels or a home battery may later find that a specialist Octopus tariff fits their consumption better. Paying an exit fee could reduce the benefit of moving.
The most reliable comparison begins with the property's annual consumption. Multiply electricity use by the quoted electricity unit rate, then add 365 days of electricity standing charges. Repeat the calculation for gas and combine the totals. Do not compare tariffs using the Direct Debit alone. Two suppliers can suggest different monthly payments for the same rates, especially when one account has credit or debt. The tariff cost comes from unit rates, standing charges and consumption. Check whether the quotation includes VAT, whether it assumes Direct Debit, and whether the home has Economy 7 or another meter arrangement. Octopus states that prices displayed on its tariff page include VAT and relevant Direct Debit discounts.
Octopus 12 Month Fixed offers twelve months of rate certainty while wholesale energy markets remain unsettled. Its strengths are protection from increases and straightforward billing. Its limitations are the ยฃ50 exit fee per fuel and the loss of automatic savings if market prices decline. Before accepting it, compare the live postcode quotation with Flexible Octopus and any specialist tariff suited to the property. The best choice depends less on a national headline and more on actual use, regional prices, household technology and willingness to accept future market risk.
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