Power costs are very risky proper now because of the battle in Iran, and dynamic tariffs primarily based on reside wholesale costs like Octopus Tracker and Agile Octopus are inclined to see the impacts first. So, is it time to repair on an ordinary tariff?
Each model of Octopus Tracker and Agile Octopus has a built-in worth cap. Your charge strikes with the wholesale market, however it may possibly by no means transcend that ceiling – it doesn’t matter what occurs globally.
The present cap sits at 100p/kWh for electrical energy and 30p/kWh for fuel.
To place that in context: August 2022 was probably the most risky month in UK vitality historical past, when wholesale fuel costs hit practically ten instances their regular ranges. Even then, Tracker charges by no means exceeded their cap.
Have Tracker and Agile truly been price it over time?
Sure, and the numbers inform the complete story. Let’s take a look at Tracker particularly – the final time world battle despatched vitality costs spiralling, Tracker prospects got here out forward. This is precisely the way it performed out:
A typical buyer who joined Tracker in March 2021 (a 12 months earlier than Russia’s invasion of Ukraine triggered a world vitality disaster), and stayed on it via to March 2026 saved £1,462.11. That is in comparison with being on Versatile Octopus over the identical interval.
As a result of Tracker follows the day by day wholesale worth, it does spike throughout moments of disaster – but it surely additionally drops when the market calms. Versatile Octopus strikes far more slowly, which means Tracker prospects profit much more when costs fall. Over 5 years, these cheaper days added up considerably:
Historic Tracker fuel vs Versatile Octopus costs, 2021-2026
This instance above assumes a buyer who signed as much as a 12-month Tracker contract and switched to the most recent out there model every year at renewal.
I’m on Octopus Tracker or Agile Octopus – ought to I transfer to an ordinary tariff proper now?
That is genuinely your choice and we would by no means push you both method. What the information reveals is that with these dynamic, wholesale-based tariffs, it’s possible you’ll pay greater than commonplace tariff prospects within the brief time period, however typically these spikes do not erase long-term positive factors.
We do not know the way lengthy battle might final, but when the scenario stabilises quickly and wholesale costs fall again shortly, leaving your dynamic tariff now means being locked out for as much as 9 months – so would imply lacking out on these decrease costs for some time.
Over the previous 5 years, Tracker and Agile prospects who stayed the course have come out with financial savings.
If you would like safety and stability throughout this turbulence, you are free to repair now or transfer to Versatile Octopus, our worth cap protected tariff – learn extra about these choices.
No matter you resolve, we’re right here to assist.
Do Tracker & Agile have exit charges?
No. There aren’t any exit charges on Tracker – you may go away everytime you like. Simply keep in mind that when you go away earlier than your 12-month time period is up, you gained’t be capable to rejoin for an additional 9 months.
Good to know: this does not apply when you go away throughout the final 49 days of your tariff.
