Octopus tracker energy tariff – How does it work and should you switch?

Octopus tracker is an energy tariff provided by Octopus Energy. The tariff has recently been relaunched and is available to both new and existing customers giving them access to energy rates that directly track the price of wholesale energy.

In this article, we explain how the Octopus tracker energy tariff works, the pros and cons and whether it is worth switching to. For the latest on the best and cheapest energy tariffs, check out our regularly updated article 'What is the cheapest fixed-price energy tariff? - Best deals compared'.

Octopus tracker energy tariff key features

• Tariff tracks the daily wholesale price of gas and electricity
• 12 month fixed term tariff, however, customers can exit for free (However they cannot return to the tariff for 9 months)
• Unit rates for gas and electricity change at midnight daily
• Tariff is open to new customers only, however, new customers can join on a standard tariff and then make the switch
• Only open to smart meter customers (Non-smart meter customers can sign up and receive a free smart meter installation but the switch to Octopus tracker will take longer than for existing smart meter customers)
• Daily rates for gas and electricity can vary depending on the region you live in
• Maximum daily price cap of 100p/kWh for electricity and 30p/kWh for gas

How does the Octopus tracker energy tariff work?

The Octopus tracker energy tariff tracks the daily wholesale price of gas and electricity. So, rather than paying a fixed rate for their energy, customers are charged a rate that fluctuates daily, based on the current wholesale price of gas and electricity. Wholesale energy prices refer to the rate that energy firms pay for energy, meaning customers on the Octopus tracker tariff pay the same rate as the suppliers.

Octopus tracker allows customers to track the rates they are being charged via their online account as well as see how the unit rates for each day compare with the standard variable tariff offered by Octopus. It is worth remembering that energy prices can fluctuate wildly, so while you may end up paying a rate far lower than the current energy price cap - especially when wholesale prices are low - you won't be protected by the energy price cap should wholesale prices quickly rise.

How does the Octopus tracker energy tariff compare to the energy price cap?

The energy price cap - which is the annual energy usage for the average dual-fuel household - currently stands at £1,928. On the 1st April 2024 it will fall to £1,690. Recent data has shown that those on the Octopus Tracker have paid less for their energy in recent months when compared to those on a standard tariff, however, wholesale energy prices can quickly change and so there is no guarantee that it will remain cheaper in the coming months.

The Octopus tracker does, however, afford some protection for those worried about rising energy costs. There is a price cap of 100p/kWh for electricity and 30p/kWh for gas and customers can switch out of the tariff without penalty, although it could take a couple of weeks to be actioned. Those considering switching to the Octopus tracker tariff should consider whether they could afford to pay higher energy costs should wholesale energy costs rise and whether the stress of having to constantly monitor wholesale energy costs is worth it.

 

Will I need a smart meter to switch to the Octopus tracker energy tariff?

Yes, the Octopus energy tracker energy tariff works in conjunction with a smart meter so if you do not have one, you'll need to be willing to get a smart meter in order to switch to the tariff. Octopus Energy will be able to install a smart meter at no cost, however, you will need to start with one of its standard tariffs until your smart meter is up and running, which could take a number of weeks.

Can you leave the Octopus tracker energy tariff?

Yes, while there are no exit penalties for leaving the Octopus tracker energy tariff, it could take up to two weeks to complete a switch to an alternative tariff. Additionally, if you decide to leave the Octopus tracker energy tariff, you will not be allowed to switch back to it for at least 9 months.

Pros and cons of the Octopus tracker energy tariff

Pros

• The tariff tracks the daily price of wholesale gas and electricity so you will benefit from cheaper energy when wholesale prices are low
• Those who do not have a smart meter can switch to the tariff and have one installed at no cost
• Octopus tracker is capped at a maximum daily price of 100p/kWh for electricity and 30p/kWh for gas
• The tariff is available to those wanting a gas-only, electricity-only or dual-fuel tariff

Cons

• The tariff tracks the daily price of wholesale gas and electricity so you will be hit with higher energy costs when wholesale prices are high
• Although the price of the tariff is capped, the cap is much higher than the current energy price cap
• Those without a smart meter will have to wait a few extra weeks before they can access the tariff
• If energy prices are high and you decide to leave it could take up to two weeks to switch (and you will not be allowed to return to the tariff for 9 months)

How to switch to the Octopus tracker energy tariff

The process of switching to the Octopus tracker tariff will depend on whether you are already a customer. We explain how to switch to the Octopus tracker tariff in both scenarios below:

How to switch to the Octopus tracker if you are an existing customer

Follow the below steps to switch to the Octopus tracker tariff if you are an existing customer

Step 1

Check whether Octopus tracker is currently accepting switches. It is a popular product and so you may find that sign-ups are closed and you need to join a waiting list.

Step 2

If sign-ups are open then you'll need to request a smart meter if you don't already have one. Installation will be carried out for free but it may take a few weeks to be fully connected. If you already have a smart meter then move on to the next step.

Step 3

Request to switch to the Octopus tracker tariff. This can be done online, via email or via phone. You will need to confirm the terms and conditions of the new tariff and you'll receive updates as to when you will be fully switched over to the Octopus tracker plan.

How to switch to the Octopus tracker if you are a new customer

Step 1

Those not already with Octopus will first need to switch to its standard variable tariff. Switches can be carried out online or by calling 0808 164 1088. Once you are an Octopus customer you can join the Octopus tracker waiting list. The tariff is proving to be popular and so unfortunately there is no guarantee that you will be accepted onto the tariff.

Step 2

If sign-ups are open then you'll need to request a smart meter if you don't already have one. Installation will be carried out for free but it may take a few weeks to be fully connected. If you already have a smart meter then move on to the next step.

Step 3

Request to switch to the Octopus tracker tariff. This can be done online, via email or via phone. You will need to confirm the terms and conditions of the new tariff and you'll receive updates as to when you will be fully switched over to the Octopus tracker plan.