Since its launch in Could 2017, our Tracker tariff has constructed a little bit of a cult following. Prospects love the transparency – with the ability to see tomorrow’s power costs at present – and the flexibleness it offers them to shift their power use to greener, cheaper occasions.
Most significantly, they love the invoice financial savings: Tracker’s market charges saved clients, on common, £320 in 2024 vs Versatile Octopus, our normal variable tariff.
However with power costs on the rise, is Tracker nonetheless a wise selection? This weblog offers the most recent data on Tracker and the power market that will help you determine.
Fast recap: What’s Tracker?
Tracker was the UK’s first tariff to really comply with wholesale power costs. In contrast to normal tariffs, the place costs are locked in months forward, Tracker strikes with the market – updating every day to mirror the true price of power. Which means when wholesale costs drop, so do your payments. It is particularly helpful should you might be versatile about while you use power.
Through the years, we’ve had wonderful suggestions from die-hard followers who’ve considerably lower their payments, with real-time costs typically 30-40% cheaper than normal tariffs. However it’s not nearly financial savings, tariffs like Tracker (and sister tariff, Agile) are a part of an even bigger image.
These tariffs play a vital position in serving to us construct a wiser, extra sustainable power system. By shifting power use to occasions when there’s extra renewable energy, clients assist make the grid greener. So it’s thumbs up from the planet too!
Why are the charges increased in the meanwhile?
Tracker can imply massive financial savings, however there’s a flip aspect: as a result of it follows wholesale costs in actual time, charges can spike unexpectedly. That’s not ultimate should you can’t simply shift your power use – and presently, power costs are on the rise.
This April, Ofgem confirmed the value cap is ready to extend by £111 for a typical house – irritating information for purchasers already feeling the squeeze from earlier hikes.
Why have wholesale power prices elevated? Listed below are a couple of causes:
- World occasions: Vitality costs are closely affected by what’s occurring around the globe. Russia, the largest gasoline exporter, continues to be at struggle with Ukraine, and tensions within the Center East have added to the instability – pushing costs up worldwide.
- The climate: January 2025 was colder than the 10-year common within the UK, which means folks used extra gasoline at a time when provides had been already tight throughout Europe. This additional demand places much more strain on costs.
- Market volatility: When power costs soar round so much, it’s riskier for suppliers. To guard themselves, they issue this threat into their costs, making payments increased.
What does this imply for Tracker?
Rising wholesale costs imply Tracker charges have additionally crept up previously few weeks – generally even increased than our mounted and versatile costs. Though they haven’t reached the utmost every day unit charge of 100p/kWh for electrical energy and 30p/kWh for gasoline.
And searching forward? It’s unlikely we’re going to see any significant shifts within the wholesale power market anytime quickly. In response to our worth cap predictions, it appears to be like like costs may fluctuate a bit, however not sufficient to make a major distinction to folks’s payments (£50+/- distinction from April charges).
So, the massive query: is Tracker nonetheless price it?
It’s kind of of a combined image. To essentially perceive Tracker’s worth, we have to take a look at the common unit charges and the way these have been altering over time. This offers a clearer concept of how Tracker has carried out, which issues greater than any short-term worth spikes.
Right here’s how Tracker charges examine to Versatile Octopus:
Over the previous 12 months, the common Tracker charges have been 21.95p/kWh for electrical energy and 5.33p/kWh for gasoline, whereas Versatile Octopus has stayed at 24.9p/kWh for electrical energy and 6.3p/kWh for gasoline.
Over 2024, this made Tracker less expensive than our normal variable tariff – ‘Versatile Octopus’ – saving a median buyer £320 over the 12 months. The Tracker electrical energy charge was cheaper 300 days out of 2024 and gasoline for 324 days in comparison with ‘Versatile Octopus’.
Tracker charges have additionally dropped as little as 11.59p/kWh for electrical energy and 3.9p/kWh for gasoline at occasions – displaying simply how a lot clients can save by shifting their utilization consistent with the value dips.
With the announcement of the April worth cap, Versatile Octopus charges are anticipated to extend to 27.03p/kWh for electrical energy and 6.99p/kWh for gasoline (inc VAT). So, if Tracker costs stay at an identical charge, it might find yourself being a less expensive deal in the long term.
Summer time can also be on the best way, when Tracker tends to carry out finest. Throughout the hotter months, there’s often loads of renewable power on the grid, which is nice information for Tracker’s worth dips. Shifting your utilization away from peak occasions can result in massive financial savings.
Attempt our Tracker portal
See historic Tracker costs and common charges over time. In case you’re not on Tracker, it’s also possible to see how a lot you’d spend on Tracker vs your present tariff by hitting ‘examine your consumption’.
You want:
- Your Octopus account quantity
- Your API key (each buyer is issued one and you could find yours in your account below ‘Private particulars’)
- You might want some meter particulars, like your MPAN or serial quantity – to search out these, scroll down in your Octopus dashboard to the meters
The underside line?
Tracker has some superior perks that set it other than different tariffs. Whereas charges is likely to be a bit increased proper now, it may possibly nonetheless provide nice worth should you’re in a position to shift your power use and benefit from worth dips.
Finally, it comes right down to what fits you finest. In case you don’t thoughts using the ups and downs for the prospect to pay much less over time, Tracker could possibly be nonetheless be an excellent match. In case you’d quite have worth certainty: our Mounted or Versatile is likely to be a greater shout!
And the perfect bit? There are not any exit charges, so should you discover Tracker isn’t best for you, you possibly can change tariffs at any time in your account below ‘change my tariff’.
However TBH? You is likely to be like Julia, and miss the joys…
