New tariff to potentially lower energy costs below price cap

Octopus Energy is set to introduce the “Tracker” tariff, offering gas and electricity prices based on wholesale costs

Octopus is preparing to unveil a new tariff that has the potential to lower energy costs below the energy price cap.

The energy supplier is expected to offer the “Tracker” tariff to both existing and new customers starting from Friday 7th July.

Unlike the standard variable tariff (SVT), which has its prices capped by Ofgem, the Octopus Energy Tracker tariff offers customers gas and electricity prices tied to wholesale costs.

This means that the amount customers pay for their energy can fluctuate on a daily basis, depending on the prevailing conditions in the energy market.

In the last few weeks, wholesale energy prices have experienced a considerable dip, thanks to milder weather conditions and reduced demand for gas.

However, it’s important to note that if wholesale prices rise in the future, customers on the Octopus Tracker tariff could end up paying more than those on price-capped tariffs.

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