Octopus Energy has relaunched its "Tracker" energy tariff - which comes after Ofgem announced its July energy price cap earlier today.
The tracker allows users to follow wholesale prices and cut your usage on more expensive days. As reported by The Mirror, with the price cap sitting at £2,074 energy providers will likely start to launch new tariffs onto the market.
Described as a 'variable' tariff, the tracker for gas and electricity will follow the wholesale price of energy which is the price suppliers pay. This means your energy prices can go up and down each day.
READ MORE: Ofgem announces new lower energy prices and here's what you'll pay
The energy firm will then update the price of your energy every day, which can help people adjust their usage to represent the market costs. This, in turn, could save users money.
According to Octopus, over the last year an average household on the tariff would have saved 4% compared to the new price cap of £2,074. The product had been closed to new sign ups to protect consumers when wholesale costs skyrocketed last year - however, it has now been reopened.
It’s mainly designed for households who shift large amounts of their energy use to avoid costly peaks. Those wanting to sign up have been warned that wholesale prices will go up later this year, but Octopus has now introduced a maximum cap for energy costs.
The cap is 100p/kWh for electricity and 30p/kWh for gas. The product has no exit fees but those choosing the tracker should consider whether it is right for them to commit to.
There are limited places available for the new tariff. You can register your interest here.
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