Octopus Energy has launched a “world first” local time of use tariff that drops prices for customers when wind speeds are up.
The new ‘Fan Club’ tariff will be available to those living close to wind turbines in Caerphilly, South Wales, and Market Weighton, Yorkshire, both of which were just acquired by the company.
Customers in these areas will able to use a bespoke 100% green electricity tariff that will see a 20% discount on the unit price when the turbines are spinning, which is about 98% of the time, Octopus Energy said.
When the wind picks up – to above 8m/s in Market Weighton and above 10.8m/s in Caerphilly – this discount will be increased to 50%.
According to Octopus Energy, this will mean that compared to the price cap set at £1,042 for a typical dual-fuel household, those in the ‘Fan Club’ could save up to £229 off their bills.
The acquisition of the two turbines, named ‘#1 Fan’ and ‘#2 Fan’ signal the company’s first foray into the generation market. Each 73 metre high turbine has blades 54 metres long and a 500kW power output. Both operate at speeds of between 2.5m/s and 25m/s.
Zoisa Walton, director of Octopus Energy Generation, lauded the company’s “first ever own brand turbines” as the initial step in a “huge plan for Octopus owning its very own generation and offering local wind tariffs across the country”.
“It means we can begin producing the clean, green power we provide to customers ourselves and incentivise customers to use energy when it’s the absolute greenest.
“By matching this generation with our proprietary agile technology, we’re unlocking exciting opportunities for the cheapest electrons to be the greenest. Soon local customers will be able to join the ‘Fan Club’ and get discount prices for windy days, helping out their pockets and the planet.”
The ‘double unicorn’ energy provider had a busy 2020, expanding its operations into Japan, Germany and the US. In the UK, Octopus Energy has 1.8 million customers and opened a new tech hub in Manchester last November, creating a further 1,000 jobs.
Its new ‘Fan Club’ tariff is available to all YO43 postcodes and all CF81 and NP24 postcodes, with a £1 p/w membership cost from January 2021.
