Octopus Energy customers given £145 for making one change

Octopus Energy customers can slash £145 off their annual energy bill by making one simple change at home.

The leading energy supplier, which serves around 6.8 million households in the UK, says adjusting your thermostat by just one degree will result in huge savings.

It is particularly prudent to save money on energy costs right now as household bills will increase by 1.2% from this month as regulator Ofgem’s new price cap takes effect.

Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets, but the cap doesn’t limit total bills.

Instead it sets the maximum price suppliers can charge for each kilowatt hour (kWh) of energy, but households still pay for the total amount of energy that they use – so those that use more, pay more.

The new January price cap will add an extra £21 to annual bills for homes in England, Scotland and Wales, rising from £1,717 to £1,738 per year.

It follows a previous 10% rise in October and it is expected that the cap will rise yet again in April as market “turbulence” and price cap reforms feed through to bills.

As such, Ofgem has urged customers to make savings by shopping around and taking advantage of increasing choice among suppliers. But simply lowering your thermostat by one degree at home can also make a huge difference to bills, leading to annual savings of up to £145.

Octopus Energy is urging households to make the change and says constantly switching your heating on and off, or boosting it for a quick burst of heat, should be avoided as this wastes a lot of energy.

The supplier says: “Tweaking your thermostat – using it as an on/off switch or boost for example – can mean more energy is wasted – you’ll be comfier and use your energy more efficiently if you set it and leave it on for when you need it. 

“Setting your thermostat to somewhere between 18-21°c is ideal, and turning down the temperature by just 1 degree could save up to £145 on your energy bill.”

The minimum temperature to set your heating to stay healthy in winter and protect against the cold is 18C, although the elderly may benefit from a slightly warmer temperature.

But even if your heating is normally set higher at around 22C or 21C, simply reducing this by one degree will make a big difference to your energy costs and won’t massively reduce the warmth of your home.