25 May 2023 , 12:13
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Octopus Energy has relaunched its "Tracker" energy tariff which allows you to follow wholesale prices and cut your usage on more expensive days.
The energy firm shared the relaunch of its "popular" tracker tariff as Ofgem announced its July energy price cap.
As the price cap is now much lower than before, sitting at £2,074, energy providers will likely start to launch new energy tariffs onto the market.
The Octopus Tracker tariff for gas and electricity, which will launch in July, is a variable tariff which follows the wholesale price of energy - this is the price suppliers pay.
This means your energy prices can both go up and down each day.
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Octopus updates the price of your energy every day which can help people adjust their usage to represent the market costs - which in turn can save them money.
According to Octopus, over the last year an average household on the tariff would have saved 4% compared to the new price cap of £2,074.
The product had been closed to new sign ups to protect consumers when wholesale costs skyrocketed last year - however, it has now been reopened.
The tariff is designed for households who are able to shift large amounts of their energy use to avoid any expensive peaks.
Those wanting to sign up have been warned that wholesale prices will go up later this year but customers shouldn't worry too much as Octopus has now introduced a maximum cap for energy costs.
This is 100p/kWh for electricity and 30p/kWh for gas.
If you fancy signing up then you should be aware that there are limited places but you can register your interest on Octopus' website.
The product has no exit fees but customers choosing the tracker should consider whether it is right for them to commit to.
Once you switch away from the tracker, you cannot sign up for it again for another nine months.
Rebecca Dibb-Simkin, chief product officer at Octopus Energy Group said: “The energy market is changing rapidly, and we believe it's essential for consumers to have the tools to harness this change for their benefit.
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"We’re glad we can bring our popular Tracker product back to the market, allowing customers to become an active part of the future energy system once more.
“By creating a transparent tariff that allows customers to access wholesale rates and plan their energy consumption accordingly, we’re empowering customers to become actively and directly involved with the energy market, and see how prices rise and fall.”