Octopus Energy has launched what it claims is the UK’s first “transparent” energy tariff, which will be tied directly to the daily wholesale price.
The Octopus Tracker will be updated every day, based on the current wholesale gas and electricity price.
Customers will be able to see any price changes on the energy firm’s app, which will also include details about why the wholesale energy price may have risen or fallen.
The company said customers are also free to switch from the transparent tariff to Octopus’s standard or fixed rates at any time, or to another supplier, with no exit fees.
“With this tariff, we’re tying our own hands,” claimed Octopus Energy chief executive, Greg Jackson.
“Even if we wanted to use sneaky pricing, we can’t. 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.
“At Octopus, we are putting trust and transparency at the forefront,” added Jackson. “We’re serious about reforming: we launched our ‘fair prices forever’ TV campaign this year, followed by our campaign for relative price caps. Now we’re launching the first-ever energy tariff to guarantee fair pricing and transparency.”