New tariff tracks energy market prices to provide fairness and transparency of pricing. Prices updated every month to reflect monthly changes in wholesale costs. Product includes mechanism to protect customer from high price spikes.
ENGIE, the largest company to enter the UK domestic energy market for over 15 years, today launches a new tariff designed to offer UK households fairness and transparency of pricing, with its Tracker tariff linked to the cost of wholesale energy.
In much the same way as a tracker mortgage follows the Bank of England base rate, the unit rate that ENGIE Tracker customers pay for their electricity and gas will rise and fall with wholesale energy market changes.
Under the Tracker price plan, ENGIE will update its prices every month, passing any savings on to the customer when the market falls and raising customer bills when the market rises. These prices will be based on independently produced energy price information.
The tariff will also protect customers from unusually high price spikes by capping the amount charged for the cost of the energy (the variable unit rate).
The launch follows an ENGIE poll amongst over 2,000 UK households which revealed that:
One in five don’t understand their energy bills
One in 10 don’t know roughly how much they are paying for energy
A quarter complain their energy company is not transparent about its pricing
More than a quarter believe they are not paying a fair price for energy
Like any other tariff, the ENGIE Tracker tariff is made up of fixed and variable costs. The fixed cost - which covers the cost of ENGIE getting the energy to its customers, such as maintenance, wires and pipes – will be fixed for the duration of the tariff term, while the cost of the energy itself will reflect monthly changes in wholesale prices.
ENGIE launched its home energy business in May 2017 with its innovative Rollover Price Promise, a commitment to switch customers to the cheapest tariff at the end of their fixed term, and 100 per cent renewable electricity for all customers at no extra cost. ENGIE Tracker has been developed to offer greater choice and price clarity for consumers. As with tracker mortgage products, the ENGIE Tracker can benefit anyone who wants to be assured that they are paying a fair price for their energy at all times, as it will be transparently linked to the underlying wholesale market prices for gas and electricity. The wholesale price will also be externally audited.
Wilfrid Petrie, CEO of ENGIE in the UK & Ireland, commented:
"We are pleased to have launched this new and innovative tariff to complement our other offers. ENGIE Tracker is an important part of our commitment to fair, clear and transparent pricing. We know some customers will prefer the peace of mind that fixed contracts offer while others will appreciate their energy bills being linked to the actual cost of wholesale energy. We want to make sure that we offer a price plan to suit everyone.”
The tariff has no exit fees and a discount is available to dual fuel customers. It is not available for pre-payment or on non-standard meter types.