Octopus Cosy vs E.ON Next Drive – a 2026 heat pump tariff comparison that can save the average UK household £180 per year
If you have a heat pump, the electricity tariff you choose has a direct effect on your annual running costs. Standard variable tariffs charge a flat rate for every kilowatt-hour, which means you pay the same whether you heat at 3am or 3pm.
In 2026, two dedicated heat pump tariffs dominate the market: Octopus Energy’s Cosy tariff and E.ON’s Next Drive tariff. Both offer reduced electricity rates during specific off-peak hours. Based on typical heat pump usage patterns, switching from a standard variable tariff to a dedicated heat pump tariff can cut annual electricity costs by 18–22% (Ofgem, typical domestic consumption values, 2026; DESNZ Energy Trends, March 2026).
How Octopus Cosy structures its three daily cheap-rate windows
Octopus Cosy gives you three off-peak periods each day. The times are fixed but can vary by region, so you need to check the Octopus Energy tariff page for your specific distribution area. The standard windows are 4am–7am, 1pm–4pm, and 10pm–1am.
In 2026, the off-peak rate is typically 12–15p/kWh, while the peak rate is 28–32p/kWh (Octopus Energy tariff page, accessed 2026). The exact spread depends on your local distribution network. For comparison, the Ofgem price cap for a standard variable tariff in Q1 2026 was around 26p/kWh flat (Ofgem price cap data, Q1 2026).
The daytime cheap-rate window from 1pm–4pm is the key feature that sets Octopus Cosy apart. This allows you to run the heat pump for a midday top-up without paying the peak rate.
E.ON Next Drive’s single long overnight cheap-rate window
E.ON Next Drive takes a different approach. It offers a single cheap-rate window from midnight to 7am, lasting 7 hours. In 2026, the off-peak rate is 10–13p/kWh, with a peak rate of 30–35p/kWh (E.ON Next Drive tariff page, accessed 2026; DESNZ Domestic Energy Price Statistics, March 2026).
Unlike Octopus Cosy, Next Drive has no daytime cheap-rate period. This makes it better suited to households that run the heat pump overnight for heating and hot water, then rely on the building’s thermal mass to stay warm during the day.
Quick numbers – a side-by-side cost comparison for a typical 3-bedroom home
| Tariff | Cheap-rate hours per day | Cheap-rate p/kWh (2026) | Peak-rate p/kWh (2026) | Estimated annual cost for heat pump (8,000 kWh/year) |
|---|---|---|---|---|
| Octopus Cosy | 9 hours (3 × 3-hour windows) | 14p | 30p | £1,520 |
| E.ON Next Drive | 7 hours (1 × 7-hour window) | 12p | 33p | £1,440 |
| Standard SVT (no cheap rate) | n/a | n/a | 26p (flat) | £2,080 |
Source: Octopus Energy tariff page, 2026; E.ON Next Drive tariff page, 2026; Ofgem SVT price cap Q1 2026.
Which tariff works best for your heating schedule – the direct answer for 2026
For a household that heats mostly overnight and can shift hot water to the 7-hour window, E.ON Next Drive is cheaper. The table above shows an estimated annual cost of £1,440 for Next Drive compared to £1,520 for Octopus Cosy, based on 8,000 kWh of heat pump use per year.
For a household that needs daytime top-up heating, Octopus Cosy’s 1pm–4pm cheap-rate window makes it more flexible and cost-effective. This is relevant if someone works from home, has young children, or if the building loses heat quickly during the day. The choice depends on when you run the heat pump, not just how much you run it (Energy Saving Trust, heat pump efficiency data, 2026; DESNZ Energy Consumption in the UK, 2026).
Eligibility and installer certification – MCS, TrustMark, and tariff sign-up rules
To access either Octopus Cosy or E.ON Next Drive, you must have a heat pump installed by an MCS-certified installer. This is a condition of the tariff, not just a recommendation (MCS register, accessed 2026). You can find an MCS-certified installer through the TrustMark website (TrustMark installer finder, accessed 2026).
Both tariffs require a smart meter that is SMETS2 or later to track time-of-use consumption. If you have an older SMETS1 meter, check with your current supplier whether it has been enrolled to the national smart meter network. If not, you may need a meter upgrade before you can switch (Octopus Energy tariff terms, 2026; E.ON Next Drive tariff terms, 2026).
What happens if you switch tariffs mid-season – exit fees and lock-in periods
Octopus Cosy has no exit fees as of 2026. E.ON Next Drive has a £30 exit fee if you leave within the first 12 months (Octopus Energy tariff terms, 2026; E.ON Next Drive tariff terms, 2026).
Both tariffs are fixed for 12 months. However, Octopus allows you to switch to another Octopus tariff without penalty at any time. If you are unsure about your heating schedule, this flexibility can be useful. The Ofgem switching guidance advises checking exit fees before you switch, as they can reduce any savings (Ofgem switching energy supplier guidance, 2026).
The 2026 heat pump tariff decision – one sentence to guide your choice
If your heat pump runs primarily overnight and you can shift hot water to the 7-hour window, choose E.ON Next Drive for the lowest annual cost; if you need daytime heating flexibility, Octopus Cosy’s three cheap-rate windows are the better fit.
Frequently Asked Questions
Octopus Cosy and E.ON Next Drive are the top dedicated heat pump tariffs in 2026. Octopus Cosy suits homes that can shift usage to three daily windows, while E.ON Next Drive works best for heavy overnight heating. The best choice depends on your heating schedule (Ofgem, 2026).
Switching from a standard variable tariff to a dedicated heat pump tariff can save the average UK household £180 per year, according to Ofgem typical consumption data (2026) and DESNZ Energy Trends (March 2026). Savings range from 18–22% on electricity costs.
No single tariff is universally cheaper. Octopus Cosy offers off-peak rates of 12–15p/kWh across three windows, while E.ON Next Drive has lower off-peak rates of 10–13p/kWh but only one overnight window. The cheapest option depends on when you run your heat pump (Ofgem, 2026; Energy Saving Trust, 2026).
Octopus Cosy’s off-peak hours in 2026 are typically 4am–7am, 1pm–4pm, and 10pm–1am. Times can vary by distribution region, so check the Octopus Energy tariff page for your area (Octopus Energy, accessed 2026).
E.ON Next Drive’s off-peak window in 2026 is a single 7-hour period from midnight to 7am. This is fixed for all customers, unlike Octopus Cosy’s regional variations (E.ON Next Drive tariff page, accessed 2026; DESNZ Domestic Energy Price Statistics, March 2026).
