Octopus Energy has launched a new tariff that shows consumers how much profit it is making.
The energy supplier said its customers will be able to use an app to see the wholesale price they are paying for energy every day, along with the additional costs of supplying that energy as well as the mark-up it makes.
The Octopus Tracker tariff will also provide information around why wholesale energy prices may have risen or fallen – and can even alert customers if prices increase.
It comes as the Big Six companies have been criticised for being slow to pass on lower wholesale costs to consumers while being quick to announce price rises.
Latest figures from Energy UK reveal three in 10 customers switched from larger suppliers to small and medium-sized companies last month.
Greg Jackson, Founder of Octopus Energy, which has around 90,000 customers, said the tariff guarantees customers won’t be “ripped off”.
He added: “With this tariff, we’re tying our own hands. Even if we wanted to use sneaky pricing, we can’t.
“In a digital age, where you can bank online 24/7, follow your taxi on an app and get an Amazon delivery in two hours, we don’t need to accept an energy industry where a fair deal takes hours to find, weeks to materialise and usually comes with a booby trap pricing and exit fees.
“We hope that this is the beginning of an energy market where people can really see what they’re paying and vote with their feet if they don’t like it.”