Octopus Energy Referral

octopus energy refer a friend

One of the ways energy companies attract new customers is to incentivise existing customers to refer a friend or relative to switch to their supplier. Octopus Energy's referral scheme allows existing customers to recommend a friend via a referral code where you would get a £50 credit from Octopus Energy once your switch to them is completed.

Octopus is not the only energy provider to offer cash incentives to join them, the Bulb referral scheme works in much the same way and is probably the one most people are familiar with.

Should I switch to Octopus for a £50 credit?

It may seem like a daft question but if an energy supplier like Octopus is going to credit your account with £50 for switching to them why wouldn't you do it? For the average UK energy user at the moment £50 accounts for about 2 to 3 weeks worth of energy costs so it is not insignificant.

People switch energy suppliers for different reasons. You may be switching because your current supplier has caused you stress and hassle or has become too expensive. You may have heard great things about a new supplier or have been tempted by a cashback offer such as the one from Octopus Energy.

You should not switch to a bad energy supplier based on a cash incentive. You don't want to end up stuck with a poorly performing energy company that doesn't answer the phone or reply to your emails because you are trying to find out why they keep on increasing your direct debits.

How to check if Octopus is the best deal for you

Do your research before your switch. To save you time I've put together a review of the best energy suppliers that will show you which UK suppliers have performed consistently well and are unlikely to cause any issues.

As well as checking if a new supplier is a good one you need to make sure you are actually getting a good deal in the first place. It is however worth paying a little bit extra to switch to an energy provider that has a good track record but you just don't want to be overpaying.

The easiest way to check if an Octopus deal is fair compared to other good suppliers is to do an energy price comparison. You can use an energy comparison tool such as this one to see what prices other companies charge and then compare it to Octopus Energy (this referral link gets you £50 bill credit if you join Octopus).

Does Octopus Energy offer a good deal?

Currently the cheapest tariff they offer is their Octopus Direct 12M Fixed which would cost the average UK household £81.12 a month (£973.44/year). So if you joined using an Octopus referral code your first year bill would be reduced by £50 bill credit to £923.44 for the year.

The absolute cheapest tariff on the market is the NEO 4.1 tariff from Neo Energy costing £72.94 per month (£875.28/year) which works out about £48 cheaper per year. However if you read our review of Neo Energy you will see that they are poor on customer service and are not really an energy company I could recommend.

A more direct comparison would be with energy providers with similar good levels of customer support such as Bulb, Goto Energy, Green.energy or many of the other good energy suppliers I review here at Safe Energy Switch.

The most direct comparison is where customers are trying to decide between Bulb or Octopus. Both are very similar in terms of consistently good service and fair pricing and have seen many British Gas customers leave to join them.

Supplier Tariff Cost per Month Cost per Year Cashback
Octopus Energy Octopus Direct 12M Fixed £81.12 £973.44 £50
Bulb Bulb - Vari-Fair £81.12 £973.44 £50
Green Buchan £83.72 £1,000.69 £0
So Energy So Brimble £88.00 £1,059.00 £40

The table above shows a comparison of some of the best rated energy suppliers. The suppliers 12 month fixed tariff was chosen where possible but Bulb only has a single tariff and that is a variable one. However Octopus has fixed prices for 12 months and no exit fees (most fixed rate tariffs have exit fees).

As you can see from the table at the moment both Octopus and Bulb are priced the same, both offer £50 cashback and both have no exit fees. Both have very similar positive ratings with Octopus being very slightly better being rated at 4.8/5 compared to Bulbs 4.7/5 and Bulb has 4% bad feedback compared to Octopus's slightly lower 3% bad feedback.

In terms of service and ratings both are very similar and you'd be making a safe choice choosing either.

However Octopus Energy does have the edge when it comes to innovation and a range of tariffs that are more likely to save fellow energy geeks more compared to passive energy users. If you make proactive choices as to when you run the high energy devices in your home like the washing machine, tumble dryer or dishwasher and are willing to use them outside of the 4pm to 7pm peak times then tariffs such as Octopus Agile could save you more.

Key Points

  • Octopus Energy £50 cashback only if you use a referral link.
  • Green Energy Supplier.
  • No exit fees on fixed price tariffs.
  • Always compare energy prices before switching.

How does energy cashback work?

Everyone knows that the best recommendations (no matter how well informed) come from friends and family. Energy companies leverage this by incentivising existing energy customers to recommend them to their friends and family by offering cashback or more specifically bill credits (some companies do and have offered vouchers as an incentive).

If you use the referral links from existing customers then you get credit on your opening account when you join the energy company and the person who referred you also get credit.

This type of incentivised switching should only be done if you were going to switch to the company anyway. You might as well take advantage of the £50 credit. You should not switch to any company just based on the fact they are offering you a cash incentive to do so.

The risk is that you switch to a tariff that is more expensive than other similar deals and the cashback does not cover the difference in price. Make sure you do a comparison for price first.