The CEO of Octopus Energy has expressed concerns that energy markets are “in turmoil” due to escalating conflicts between Iran and US-Israeli forces.
In response to soaring oil and gas prices, Octopus Energy has raised fixed-price tariffs and introduced exit fees for these plans.
Many other major suppliers have completely withdrawn fixed-price deals, resulting in a significant reduction of available options—more than half have disappeared in just one week, according to Uswitch data.
Fixed-price deals, which are more closely aligned with wholesale energy costs compared to variable plans, have seen notable price increases. Meanwhile, the majority of UK households remain on variable deals, which are protected by the energy price cap.
The latest agreement regarding the price cap is expected to result in a decrease in typical bills come April. However, experts advise that bills could rise by approximately 10% starting in July, primarily due to higher gas prices linked to global market volatility.
Greg Jackson, chief executive of Octopus Energy, told Times Radio: “Fixed tariffs are based on the fact the day you want to take out a fixed tariff, the energy company goes to the wholesale market and buys a year’s worth of energy for you, and because the wholesale market are now reflecting at least some of the cost increases from the effects of the war in the Middle East, new fixed tariffs are then higher.
“Some companies won’t offer them at all because they are not confident in being able to lock in those prices a year in advance.
“Where you are seeing fixed tariffs they are now typically a hundred pounds a year more expensive than a year before the conflict.”
He added: “I am keeping a very close eye on the situation.
“In energy terms, Iran has effectively closed the Strait of Hormuz, which transports 20% of the world’s oil and gas supplies, and Qatar has said it cannot honour its contracts to deliver its gas, so the energy markets are in a state of turmoil.
“The wholesale price of gas has roughly doubled since a week ago.”
