Re: Some people...
Of course this type of tariff is not for everyone, but it is a sign if things to come. That's the reason behind smart meters rollout.
I was already an Octopus customer for some time and they have the option to compare all your smart meter usage data that you have with them against the historical Agile prices and get an estimate of what you would have paid for that period if you were on the Agile tariff. In my case, it came out 30% cheaper, mostly because I'm almost never at home during peak hours.
| Why is there a penalty at the peak period?
That's when there is the highest demand on the grid. All those people getting home from work and putting on the kettle or turning on the oven. To support this extra load, the National Grid usually resorts to expensive gas peaker plants.
| Why is there a 100p cap?
Presumably to give some reassurance to customers. It's better to do this benevolently, rather than have Ofgem write special rules for your unique tariff.
| How well does Agile reflect renewable supply?
Very closely, but there are some surprises. For example I sometimes get free energy when there are strong winds (like the other day with storm Isha) but during those times the national Agile tariff can still be quite expensive.
As far as I can tell that is because of the location of renewable generation and the lack of transmission lines capacity to shift that surplus to where it's needed. So, because I have solar and wind farms nearby, I'm incentivised to use as much energy as possible rather than them having to shut down generators and pay them penalties (curtailment).
It's an interestingly complex topic and I've only just started digging... :)