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Octopus Tracker Tariff Prices.

A complete guide to the Octopus Tracker tariff.

The Octopus Tracker Tariff follows wholesale energy prices. It is unlike any other domestic energy tariff on the market. Every day at midnight Octopus Energy updates the price you pay per kWh. Unlike other Octopus smart tariffs, the Octopus Tracker tariff can cover your gas and electricty but you don’t need to be on it for both.

Let’s just cut to the chase and say this isn’t a tariff for you if you are not a savvy shopper.  If you usually prefer convenience over spending less and don’t have time to keep one eye on the price you pay for energy then walk away.

Octopus Energy changed the formula it uses to calculate the daily rates of the Octopus tracker tariff on the 1st of July 2024. There’s not a vast amount of savings to be made on this tariff right now. However, things could change. I will explain the strengths and shortcomings of the Octopus Tracker tariff in this quick review.

My name is Sarah and I have been on the Octopus Tracker tariff for around 2 years. I intend to stick with the Octopus Tarcker but you have to know when the game is over and be prepared to walk away. I am hoping I will be able to do this with credit remaining in my Octopus Energy account.

Octopus is still the only company to offer this tariff or indeed anything like it.  No one else ever has! 

Review written by Sarah Chambers

 

How does the Octopus Tracker tariff work?

Every day, Octopus Energy updates the price you pay per kWh for your energy.  The price you pay is based on an independently published wholesale market price. 

Octopus uses a formula to calculate how much the daily rate will be. This formula is fixed for 12 months when you sign up for the Octopus tracker tariff.

Your Octopus dashboard will be updated each day to show the price you will pay per kWh.

The Octopus Tracker tariff formula changed on the 1st of July 2024. So if you sign up after this date be aware that any other reviews you have read will be using a formula that is lower than the current offering.

Is the Octopus Tracker Tariff still a good deal?

Deciding if the Octopus Tracker tariff is worth switching to isn’t as clear-cut as it was a few months ago.

The Energy Price Cap is predicted to go up by 10% on 1st October 2024. This October Energy Price Cap will be based on past wholesale energy rates. On the Octopus Tracker tariff, you’ll be on these higher prices now as the Octopus Tracker tariff follows current and not past wholesale energy prices. However, so far they haven’t exceeded the Octopus flexible rate.

@sarah_go_green The @Octopus Energy has changed from the 1st July 2024. The formular Octopus uses now make its nore expensive than the previous version if the tariff. #octopustrackertariff ♬ original sound – sarah_go_green

The most up-to-date predictions by Cornwall Insight published on 28th June 2024 (the ones used by Martin Lewis) predict that the Energy Price Cap will go up on 1st October 2024 by 10%. The announcement will be made on the 2tth  of August 2024.

The October 2024 Energy Price Cap will be based on wholesale prices for the next 3 months. If you are on the Octopus Tracker tariff these are the prices you will pay now, so if prices rise further you will see them first.

The amendment to the Octopus tracker tariff formula and the increase in wholesale energy prices make it a slightly more tricky decision to make.  The fact that you can’t hop on and off this tariff also adds some more complexity.

If you switch to the Octopus tracker tariff and then decide to switch away you can’t move back to the tracker tariff for 9 months.  Personally I would watch how the energy market performs and how the general election impact on energy prices before deciding to move to the Octopus tracker tariff.  This will make it an easier decision to make.

You can read more on the Octopus Tracker Tariff FAQ page.

Octopus Tracker Tariff as of the 11th of July 2024 – July 2024 v1.

  • The Octopus Tracker Tariff is 4.91p per kWh for gas and  21.65p per kWh for electricty.
  • The Octopus Flexible tariff is 5.69p per kWh for gas and 22.37p per kWh for electricity.
  • The Octopus 12-month fixed tariff is 5.86p per kWh for gas and 22.99p per kWh for electricty.

These are the prices for South Wales on 11th July 2024. As you can see there isn’t a vast difference between the fixed, the flexible or the Octopus tracker tariff. However, prices on Octopus Tracker change daily and at the moment we are seeing it consistently beat the fixed and flexible rates even with the adjustment to the tracker tariff formula.

The Energy Price Cap is predicted to rise by 10% from the 1st October 2024 but the daily standing charge is still unknown. Maybe Ofgem will step in and change how that is charged too.

Itemised billing on the Octopus Tracker tariff.

When you are on the Octopus Tracker tariff, your Octopus bill will be itemised if you have a smart meter. There will be a row for each day this will include;

  • The date
  • Wholesale price
  • Day’s unit price per kWh
  • Energy used.

You must have a smart meter for the Octopus Tracker tariff. Previously you could sign up without one.

It is important to note that your In Home Display will not display your Octopus tracker rates. The display becomes fairly pointless when you are not on a standard tariff. I would suggest using the Octopus app, Octo Aid, or Loop.

I would also sign up for the new Octopus home mini, it’s free. The little pink tile is a brand-new device. It sends your smart meter’s data straight to your Octopus Energy app, so you can see your electricity use in near real-time.

It is important to glance at your rates each day.

Octopus suggests you check the price you pay per kWh frequently whilst on the tracker tariff. You can check the day rate by looking at your Octopus dashboard. By doing this you will get a feel for how much you are paying for your energy. They compare it to checking petrol prices at a garage forecourt. If you check often enough you will know if prices are going up or down. Remember that the average price you pay per kWh over the month is most important.

Key facts – Octopus Tracker Tariff.

octopus tracker terms

Is the Octopus Tracker tariff Britain’s fairest tariff?

The Octopus Trackers tariff was launched on 8th May 2017. Greg Jackson, CEO of Octopus Energy said, “This tariff is the first guarantee that you won’t get ripped off.”  At this time Octopus Energy had just 90,000 customers and was challenging the Big 6 energy suppliers. Now Octopus has over 5 million customers and is the largest electricty supplier in the UK. Octopus has always stood out doing the right thing even when they were considered of little threat to the Big 6.

With the Octopus tracker tariff, you know exactly what you are paying for each day. There’s a breakdown of the unit price and you know it reflects the current wholesale price in the UK.

Octopus Tracker Tariff and the July 2024 Energy Price Cap.

At the moment you would be paying less than the July 2024 Energy Price Cap if you were on the Octopus Tracker tariff for gas and electricity.  The Energy Price Cap fell in price on 1st July 2024 by 7%. It will remain at a fixed price until it is reviewed by Ofgem on 27th August 2024 with prices changing on the 1st of October 2024. (The Energy Price Cap changes 4 times a year.)

The October 2024 Energy Price Cap is based on the past 3 months’ pricing of wholesale energy. Prices have increased over the month.  This is why the Energy Price Cap is predicted to rise by 10% on the 1st of October 2024.

On the Octopus Tracker tariff, the price you pay is based on wholesale prices now, not in the past and prices are predicted to rise a little further. I am on the Octopus tracker tariff and even though this is the case I have not exceeded the price of the July Energy Price Cap but using the new July formal of the Octopus tracker tariff there isn’t a lot in it. However, anything could happen in the world and prices could go up as well as down

If you decide to switch to the Octopus tariff tariff I would strongly suggest you keep an eye on the price you pay each day. It is more of a gamble than it was a year ago.

The Flexible tariff isn’t as responsive to wholesale energy prices as the Octopus Tracker tariff.

If you are on a standard tariff, such as the Octopus Flexible tariff, the amount you pay went down on 1st July 2024.  The price of your energy will remain the same until the new Energy Price Cap in October 2024.

You can monitor both gas and electricity wholesale prices on this website. You can also take it a step further and see how wholesale prices change by the hour on this site BUT there’s no need unless you are interested in the wholesale energy market. I will explain more below.

If you are interested in energy prices and what the future holds this is a very informative document from the House of Commons Library. It is a research document (that isn’t too heavy) written in February 2023.

You will need to keep a close eye on your daily rate on the Octopus Tracker tariff but at the moment it is slightly cheaper than the Octopus Flexible tariff.

Energy prices can change at the drop of a hat so be sure to do some maths based on your own circumstances to work out if the tracker tariff is right for you.

Do you need a smart meter to switch to the Octopus tracker tariff?

Yes, you now need a smart meter to be on the Octopus Tracker tariff I have an older neighbour who switched to the Octopus Tracker tariff last August. He takes a monthly meter reading and Octopus calculates the average price per kWh for both his gas and electricity BUT this recently changed and you now need a smart meter.  He has been lucky and has managed to get one fitted.

How do I check if my meter is a smart meter?

You can check if your meter is working in smart mode on the Citizens Advice website. This online checker tool can tell you what type of smart meter you have in your home and if it’s working in smart mode.

Is the Octopus Tracker tariff the cheapest tariff available for Octopus customers?

The Octopus Tracker tariff is currently cheaper than any other traditional tariff they have for gas and electricity but there is not a lot in it and unlike for example the Octopus 12 months fixed it doesn’t offer any protection for price increases.

You could also look at the Octopus Agile tariff but that takes more thought and planning as the price changes every 30 minutes. Octopus Agile does, however, allow you to grab cheap energy or even get paid to use it when there’s an excess on the grid.

Octopus Flexible Tariff
(July Price Cap)
Octopus Flexible Tariff
(October Price Cap)
Octopus 12 months Fixed Tariff 2024 - June v4
Tracker Tariff
July v 1
Rates per kWh Fixed 1st July to 30th September 24Predicted Price Cap - 1st October to 1st March 2025 (National average price)Fixed for 12 months.Rate change daily - 12th July 2024
Electricity22.37p 24.96p22.99p21.49p
Gas5.68p 6.15p5.86p4.96p

If you are considering switching to the Octopus Tracker for electricity I would first review all the other Octopus smart tariffs available. Depending on your usage and personal circumstance you may find another smart tariff that reduces the price you pay per kWh for electricity so that it is cheaper for you. There are so many variables you need to review all the Octopus smart tariffs. You will however need a smart meter for all the Octopus smart tariffs. You need a smart meter for the Octopus tracker tariff.

One size doesn’t fit all when considering an electricity tariff. 

Just for those who are new to smart tariffs and are unsure if the Octopus tracker tariff would work out cheaper NOW for electricity, you can consider the following.

The Octopus tracker tariff over the last month has been cheaper than the standard variable tariff, ie Octopus Flexible tariff even though wholesale energy prices have increased.  Just be mindful that wholesale prices could go up further.

If you own any of the following and have a smart meter I would consider another Octopus smart tariff first.

There may be other factors that change this but this is a generalisation based on current wholesale electricity prices.

There are so many variables trying to work out which electricity tariff is the cheapest you can’t give a blanket answer for everyone as everyone’s home setup and needs will be different.

What does Martin Lewis say about the Octopus Tracker tariff?

On the 13th of June 2023, Martin Lewis posted a review on the Octopus Tracker tariff.   This is the first time it has been featured on his Money Saving Expert website. He has since mentioned it several times online and on his TV show. I think he has previously steered away from it as customers have to be on the ball with this tariff as prices change daily but it is just a good deal I am glad he has now done a review.  This won’t be for everyone and now might not be the right time to switch to hte tracker tariff but you should keep it on your radar.

Is the Octopus Tracker Tariff a safe bet?

The Octopus tracker tariff is a safe tariff to be on IF you know you will keep an eye on your daily rates. You just need to be ready to jump ship if prices rise dramatically. The only issue is you can’t go back to the tracker tariff for 9 months.

Personally, I would wait to see how the Ofgem prosed changes and the new government effect energy prices. I would wait on a fixed tariff with no exit fees or if you are less cautious another Octopus smart tariff such as Octopus Agile.

The Octopus Agile offers a good alternative and significant cost savings for households who are prepared to keep a close eye on the price they pay for their energy. You could start off on this tariff and then decide if to move to the Octopus tracker tariff. The 9 months waiting time after switching tariffs doesn’t apply to Octopus Agile.

At one stage Octopus smart tariff was almost exclusively taken up by customers who love spreadsheets but now everyone is monitoring their energy costs so it’s these unique tariff have become quite popular over the last year or so.

Can I switch to Octopus Energy as a new customer?

All traditional and smart tariffs are available to new customers. Yes, you can switch to Octopus Energy using the link below. For any smart / tracker tariffs, you will have to sign up for the Octopus Flexible tariff first and then when the switch is complete add yourself to the waiting list.

For the Octopus tracker tariff, you’ll need a smart meter. You’ll also need to be an Octopus customer. Once you have completed your switch to Octopus you can ask to move to the Octopus tracked tariff.

If you use my referral link to switch we will both receive £50 credit on our energy bill. So a big thank you if you use mine!

After answering a few short questions you will be given a quote for the Octopus Flexible tariff and Octopus Fixed tariff. You can choose either tariff as there are no exit fees. You can switch to the Octopus tracker tariff from both.

You’ll be an Octopus Energy customer in no time. Switch and claim your £50 new customer credit by using my referral link. There’s no exit fee or long-term lock with Octopus Energy. The switch is usually completed within 5 days. It’s a great way to get cashback when you join Octopus Energy as a new customer. (no code required just use the linked pages.)

Switching to Octopus and changing tariffs as soon as your switch is complete does not affect your £50 credit.

You’ll be given  £50 credit after your first direct debit is taken and you’ll get your own personal referral code to share with friends and family as soon as you have signed up.

Tip: The £50 credit is added to your balance after your first payment is made. If you opt to make a one-off payment eg £5 (the link is on your Octopus dashboard) this should trigger the £50 credit being added a day or two later. So you should get it earlier.

How can I check the standing charge price for my area?

If you go to the Octopus website you can check the current daily rate and standing charge for the Octopus tracker tariff.

  1. First head to the Octopus tariffs page.
  2. Input your postcode BUT do not click get “Get a quote”.
  3. Scroll down and click on “filters.”
  4. From the drop-down menu select “domestic.”
  5. The tracker tariff is listed about the 3rd tariff down – Octopus Tracker April 2024 v1.

The standing charge in South Wales on the Octopus tracker is 61.19p per day for electricity and 27.47p per day for gas.

What’s the latest version of the Octopus Tracker tariff called?

The latest version is the July 2024 v 1. The formula has changed for working out the daily rates. (If you switched to this tariff before 1st July 2024 you will be on the old formula.)

The tariff will appear on your dashboard and show an end date. This just means that you will stay on this version of the Octopus Tracker tariff for 12 months. The rate will change every day.

There have been several versions of the tracker tariff but July 2024 version 1 is the one you will be on if you switch to the Octopus Tracker tariff today.

Once you have switched to the Octopus Tracker tariff the formula and the cap used will remain the same on your account for 12 months. Unless of course, you switch tariffs which you are free to do at any time.

If you decide to switch to another tariff after you have been on the Octopus tracker tariff you cannot switch back to the Tracker tariff for 9 months.

Should I switch to the Octopus Tracker Tariff?

Personally I wouldn’t switch to the Octopus Tracker tariff since the 1st July 2024 formula update. Yes, you will still save a little money as it stands but the fact that if you jump ship you can’t go back on the tariff for 9 months would make me wait to see how energy prices pan out post election.  In saying that if the unit price of electricty takes on some of the standing charge you may wish you had if you aren’t a low user. It is quite a difficult decision at the moment.

What’s the difference between Octopus Agile and the Octopus Tracker tariff?

The Octopus tracker tariff was launched 9 months before the Agile tariff in May 2017. The tracker tariff has a different price for gas and electricity every day based on wholesale energy prices. Here is a quick summary of the differences between the two tariffs.

1. The Octopus tracker tariff offers customers electricity and gas prices that change every day, based on the wholesale price of energy. 

1 . Octopus Agile offers customers electricity prices that change every half an hour, based on the wholesale price of energy.

2. You don’t need to shift your energy use throughout the day as it does not fluctuate.

2. You need to be able to shift your energy use to use energy when there’s less demand or excess electricity on the grid.  During these 30-minute periods, prices drop.

Octopus Agile v Octopus Tracker Tariff.

The Octopus Agile tariff follows current wholesale electricity prices and incentivises customers to use energy when there is spare capacity on the grid to help the planet. You change how and when you use energy throughout the day depending on prices which change every 30 minutes. Similarly, the Octopus Tracker tariff follows current wholesale electricity and gas prices but only changes once a day at midnight. Customers do not benefit from using energy off-peak.

This is an Offical Octopus website which isn’t widely known about. It allows you to look at historical Octopus Agile prices for your area and if you are already an Octopus customer you can compare them to your current tariff.

If you switch away from either of the Tracker tariff you cannot return to it for 9 months, for the Agile tariff it’s currently 30 days. This stops customers from trying to game the system.

Octopus Agile Tariff – The price per kWh changes every 30 minutes.

So far Octopus hasn’t changed the Octopus Agile formula. It is still using the formula from 1st April 2024.

Octopus Agile April v 1
Rates change every 30 minutes.
Average rates over the day.
Cheapest rate each day
Thursday 11/07/2418.1p per kWh13.6p per kWh (13.30)
Wednesday 10/07/2416.5p per kWh9.9p per kWh (03.30)
Tuesday 09/07/2418.3p per kWh11.0p per kWh (04.30)
Monday 08/07/2420.0p per kWh4.5p per kWh (15.00)
Sunday 07/07/2415.9p per kWh4.5p per kWh (03.30)
Saturday 06/07/2410.8p per kWh-4p per kWh (14.30)
Friday 05/07/2414.9p per kWh.-2.0p per kWh (00.30)

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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