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Octopus tracker price increase

Octopus Tracker Tariff is it still worth it?

On the 1st of July 2024, Octopus Energy changed its formula for the Octopus Tracker tariff. While all of the Octopus tariffs saw their rates go down the Octopus July v1 of the Tracker tariff went up. If you are wondering if the Octopus Tracker tariff is still worthwhile I will attempt to give you my opinion on it as an existing Octopus Tracker tariff customer.

The Octopus Tracker tariff is the only energy tariff in the UK to truly follow wholesale energy prices. Every day Octopus updates the price you pay for your electricty and gas using a preset formula. The formula and the standing charge remain fixed for 12 months but the rates change daily depending on wholesale energy prices.

Why has the Octopus Tracker Tariff increased in price since the 1st of July 2024?

On the 1st of July 2024, Octopus launched the July v1 of the Octopus Tracker tariff. If you switch to Octopus Tracker after the 1st of July or if your fixed period ends, you will go on to the latest version of the Octopus Tracker Tariff, July v1.

Sadly the formula used on July v 1 of the Octopus Tracker tariff results in the price you pay for your electricty and gas being slightly more expensive than the previous version.

As an example on the 10th of July 2024, the Octopus Tracker tariff unit rates for electricty and gas in South Wales are;

  • July v 1 – 20.72p per kWh for electricty and 4.95p per kWh for gas.
  • April v 1 – 18.95p per kWh for electricty and 4.55p per kWh for gas.
  • December v 1 – 18.42p per kWh for electricty and 4.46p per kWh for gas.

Just as a comparison the Octopus Flexible tariff unit rates for electricty and gas in South Wales;

  • Electricity –  22.99p per kWh with a standing charge of 61.19p per day
  • Gas – 5.86p per kWh with a standing charge of 29.68p per day.

I suspect Octopus has increased the prices as it’s always been a marginal tariff in terms of profit. It gives customers the benefits of short-term dips when there are lots of renewables on the grid but unlike Octopus Agile it’s much simpler to manage as there’s just one flat rate for the day.

Now that more customers are switching to smart tariffs and are becoming more prepared to change when they use energy to get cheaper rates I suspect Octopus want to make greener tariffs such as Octopus Agile more attractive. Octopus has done the same with other time-of-use tariffs, such as Intelligent Octopus Go and the reduced rates have encouraged customers to switch to tariffs that help balance the National Grid and save them money on their energy bill.

Is the Octopus Tracker Tariff July v1 still worth switching to?

When Octopus updated the formula of the Octopus Tracker tariff this week I first thought that the increase in the formula combined with the recent wholesale energy price rises would make the Octopus Tracker tariff more one to watch than to switch to.  The rates are so close to the Octopus Flexible rates that the risk of price increases I thought would deter customers from switching especially when the Octopus Fixed tariff has quite competitive rates right now. However, since the 1st of July, we have had quite a lot of renewables on the grid and the prices have done well to beat the flexible rates even on the July v1.

My only concern in recommending anyone to the Octopus Tracker tariff now is that wholesale prices are rising and if you decide to hop off this tariff you can’t come back to it for 9 months. This doesn’t apply to the Octopus Agile tariff.

So, yes the Octopus Tracker tariff is still cheaper than the July Energy Price Cap. Over the summer there is more chance of saving money with short-term dips.  You could make more of a credit on your energy bill by being on the Octopus Tracker tariff as long as you don’t change your direct debit. You could then decide if to stay on the tariff as we get closer to winter.

It is easy to switch away from the Octopus Tracker tariff. You simply email hello@octopus.energy but remember you can’t go back to the tariff for 9 months.

Sarah Chambers

About the author:  I’ve Been a Happy Octopus Energy Customer for 6 Years.

I’m Sarah, and as a mum of 3 daughters, I want to save money and do right by the planet. This led me down a rabbit hole of researching tariffs, smart meters, and renewable options.

You can find me on X and TikTok where I connect with around 7,000 followers looking for practical ways to electrify their homes and reduce energy bills.

Feel free to follow me Sarah_Go_Green and join the conversation – I’d love to hear from you!

I’m also featured on the Octopus website and their YouTube channel as a solar customer. I’ve been on the BBC News, Radio Wales, published in the Telegraph for owning part of a wind turbine and had a feature in Bloomberg.

I genuinely want to help you understand your options and make smarter energy choices. It’s that simple, I have become very geeky about my home energy and I can help you too.

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