Octopus Energy customers given automatic £93 with one change

Octopus Energy customers can make an automatic saving of £93 per year on their energy bills by making one simple change.

According to the major energy supplier, customers who set up a Direct Debit will get cheaper tariffs and those who make the switch can make an annual saving of around £93 on average. Those that don't have a Direct Debit set up end up paying more as it creates more admin for suppliers.

Octopus says it doesn't think it's fair to make everyone cover the extra cost so it offers a cheaper rate to customers who choose to pay by Direct Debit, which costs the firm less to manage. Any customers that make a change to how they pay their energy bills will then have their bills automatically adjusted, making an annual saving of £93.

Octopus Energy said: "Setting up a Direct Debit and spreading your payments evenly over 12 months is the most popular way to pay.

"Less admin on our side makes it more cost-effective for both of us: so we give you a discount on your rates. The average home on our Flexible Octopus tariff can save around £93 a year."

The money-saving tip comes as household energy bills are set to rise again from January as Ofgem's new price cap takes effect. The energy regulator reviews and updates the price cap every three months, meaning changes take effect in January, April, July and October each year.

The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use but not the total bill, so those who use more energy ultimately pay more.

Ofgem has confirmed that energy bills are set to rise by 0.2% from January 1 meaning the average dual-fuel households in England, Scotland and Wales will pay about 28p more per month.

For the average household paying by direct debit for gas and electricity, the overall bill will be £1,758 a year, up from the current £1,755 - an increase of £3 annually.

Standing charges, which is the amount consumers pay per day to have energy supplied to their homes, are set to rise by 2% for electricity and 3% for gas or 2p a day, largely due to costs linked to the government's Warm Home Discount scheme.

Martin Lewis has warned that come January 1, households that aren't on fixed tariffs with high electricity use and low or no gas use will see bills rise by 3% or 4%.

To avoid the price increase, the Money Saving Expert founder has urged households to start checking price comparison website now and find a cheap fixed tariff before the new cap takes effect.