The way we buy energy is changing, and for those ready to embrace the dynamic nature of the wholesale market, Octopus Tracker offers a revolutionary approach to managing electricity and gas bills. Unlike traditional tariffs that lock in prices months in advance, Tracker offers daily fluctuating rates, giving you a direct look at the true cost of energy and allowing you to benefit immediately when wholesale prices fall.
What is Octopus Tracker and How Does It Work?
Octopus Tracker is a unique smart tariff that is directly linked to the wholesale price of energy. This means your unit rates for electricity and gas change every day based on the market’s performance.
The Mechanics of Daily Pricing
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Transparent Calculation: Octopus calculates the daily price using a transparent, independently published wholesale market price, plus a small margin.
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Daily Updates: Your new electricity and gas unit rates are announced once a day, typically in the late afternoon or evening, and apply for the following 24 hours.
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Seasonal Trends: Prices on the Tracker tariff naturally follow wholesale trends. This means you will typically see lower prices in warmer months when demand is low and generation from renewables is high, and higher prices in colder months when demand peaks.
Key Benefits: Immediate Savings and Transparency
The main draw of the Tracker tariff is the speed at which you can realize savings when the market improves.
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Immediate Savings: If the wholesale price of energy drops, your bill drops the very next day. Standard variable tariffs often lag weeks or months behind the market, but Tracker provides you with immediate, tangible benefits.
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Unrivalled Transparency: You get a crystal-clear look at the factors driving your energy costs, calculated using a formula that Octopus makes public.
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Flexible Fuel Options: You can choose to be on the Tracker tariff for your electricity, your gas, or both, giving you control over which services you link to the wholesale market.
Safety Net: The Price Cap Protect Feature
While the Tracker tariff allows you to save big when the market is low, it’s important to understand the risks of a volatile market. To protect customers from extreme price spikes, Octopus has implemented Price Cap Protect:
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The maximum daily price for electricity is capped at 100p / kWh.
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The maximum daily price for gas is capped at 30p / kWh.
It’s crucial to note that these caps are significantly higher than the standard Ofgem energy price cap. Octopus advises that if you need the security of a lower, externally regulated cap, a more protected tariff like Flexible Octopus may be a better option. Tracker is best suited for those comfortable with the ups and downs of the wholesale market.
Who is Octopus Tracker Best Suited For?
Tracker is ideal for customers who:
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Want Transparency: They want their tariff to reflect the real-time cost of energy, not a slow-moving standard price.
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Are Risk-Tolerant: They understand that while prices can drop significantly, they can also rise, particularly in winter.
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Are Ready to Switch: Tracker is a great introductory smart tariff for new Octopus customers who have a smart meter and want to experience the benefits of being directly connected to the market.
How to Join Octopus Tracker
To start saving with Octopus Tracker, you’ll need a few things:
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Be an Octopus Energy Customer: If you’re not with Octopus yet, you’ll need to switch to their standard tariff, Flexible Octopus, first.
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Have a Smart Meter: You must have a working smart meter (SMETS2 or a compatible SMETS1 meter, such as one made by Secure™) that Octopus can connect to for half-hourly readings.
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Connection Process: After you switch to Octopus, it generally takes about 14 days for them to fully connect to your smart meter. Once connected, they’ll email you to accept the final terms and conditions, and the switch to the Tracker tariff will happen automatically.
Ready to track your way to savings and join one of the UK’s most awarded energy suppliers? If you’re new to Octopus Energy, you can start your switch today using a referral link to get extra credit on your account!
Sign up with my referral link to get rewarded when you join Octopus Energy: