Octopus Energy has announced its new prices ahead of the new price cap period which officially begins 1st April.

The new price cap will see a typical household pay £1971 a year.

Existing Octopus Energy customers on the standard variable tariff will see costs rise to £1,921 for, about £50 below the new price cap.

The company also said the standard variable tariff for new customers will be £1,969, an estimated £2 below the price cap.

Commenting on the rise, Greg Jackson, Founder of Octopus Energy Group, said: “We’re gutted to be increasing prices like this, but with the cost of energy being up to five times higher than last year it’s absolutely unavoidable.

“We’ve already absorbed £100 million of the costs on behalf of customers, and we’re choosing to absorb another £50 million here by keeping costs for existing flexible tariff customers well below the cap – and much lower than any other large company.

“We’re also doubling our financial assistance fund for those most in need, and we’ll do all we can to help customers through this.”