How does ENGIE Tracker work?
Your unit rate explained
How do we calculate your variable unit rate?
How do we calculate your rate cap?
What is the total unit rate made up of?
The rate you are charged for your energy is made up of both ‘fixed’ and ‘variable’ costs.
The fixed part is exactly as it sounds, fixed for the length of your contract. It is made up of costs associated with us getting the energy to you, like maintenance, wires, pipes etc.
The variable part of your unit rate is the cost of the actual energy. This is reflective of the price at which gas and electricity is being sold on the open market and so is open to fluctuations in value.
With the Tracker tariff, this variable rate can go up or down monthly, as the energy market changes.
How do you calculate the monthly unit rate?
Every day billions of pounds worth of energy is traded on the energy markets. ICIS track trading activity on the energy markets and report average prices on a daily basis. The wholesale price reports used for the ENGIE Tracker tariff can be found here and here.
We then use this information to calculate a monthly average, this is what sets the variable part of your unit rate each month.
Why do energy rates change?
Energy, like gold or grain is a commodity. It is traded on the open market and depending on the state of the market, the price of energy can rise and fall. Energy can be affected by price changes in everything from crude oil to transport, so each day we see movements in energy prices on the market.
Will I be exposed to market price volatility?
To protect you from unexpectedly high price increases we limit the amount your unit rate can rise to by applying a maximum ‘rate cap’.
How is the rate cap calculated?
To calculate the rate cap, we estimate the highest amount your variable unit rate might rise to during your contract. In the above example, the highest estimated energy price occurs in February. We then apply 20% to the highest estimated price. This is the highest amount we will allow your variable unit rate to rise to. We combine this with your fixed rate to provide you with your total unit rate cap. This is designed to protect you from unusually high price increases in the energy wholesale market. We will tell you what your rate cap is in your Welcome Pack.
How do you calculate the estimated annual energy bills for Tracker customers?
To give you an idea of your annual bill, we provide you with a personal projection.
Your personal projection is based on what you’ve told us about how much energy you’ll use and our forecast price of the energy; we do this by taking your fixed prices (your standing charge and the fixed element of your unit rate) and then add a forecast for the variable element of your unit rate for each month during your contract.
What happens if I’m unhappy with the price I’m paying for energy on the Tracker product?
We understand you might not be happy with the tariff you’re on, it’s ok to change your mind. There are no exit fees with the Tracker tariff, so you’re free to move onto another ENGIE tariff.
Where can I find out the fixed and variable elements of my Unit Rate?
We provide the fixed element of your Unit Rate in your Welcome Pack together with the variable element for the first month.
We will then provide you the variable unit rate for each future month with at least 15 days notice.
Principal Terms For the ENGIE Tracker DEC 18
If you’re currently on a fixed term tariff that’s due to end in the next 12 months, we’ve used your current prices and the prices you would most likely be transferred onto when your current tariff ends. This is to work out your personal projection with your current supplier and provide you with the savings/additional cost message.
We have based your personal quote on information you’ve provided to us. If we become aware this is not accurate, we will advise you of the correct prices in writing.
Key facts for the ENGIE Tracker DEC 18 tariff
ENGIE’s Domestic Electricity and Gas Supply Terms and Conditions apply to the Tracker tariff. Your direct debit/ bill amount may vary depending on your gas and electric usage and changes to the kWh cost.
The ENGIE Tracker tariff has a fixed duration until the 31st December 2018.
During the term of the tariff, your unit rate will be made up of a fixed element and variable element. The variable element of the unit rate can change monthly and you will also be charged a fixed daily standing charge.
We will keep you updated via your chosen communication method at least 15 days prior to the end of the month with your revised kWh rates for the following month.
Please provide meter readings to us each month, on or just before the last day of every month. This allows us to make sure you always have the most up to date bills and if paying by Direct Debit your monthly payments are in line with your usage.
Around 6 weeks before the end of the fixed duration, we will contact you with details of the ENGIE Rollover tariff, which you will be automatically moved to at the end of your fixed duration term, unless you choose a different tariff at this time.
If you are paying by fixed monthly direct debit, your payment amount will be based on your estimated energy usage for the next 12 months. We will review your account monthly and if your payment needs to change we will give you at least 10 working days’ notice.
If you are paying on receipt of bill, you will receive a bill every month at this point and you’ll be expected to pay the bill in full within 20 days.
You will receive a discount for having both your electricity and gas with us.
If you fail to make a payment when it’s due, we can make changes to your payment method and/or tariff, which may result in your prices increasing. If you agree to pay by direct debit but fail to do so, we may change your payment method. If we do this you will stay on the same tariff, but your unit rates will increase by 1.05p per kWh for electricity and by 0.2625p kWh for gas (each inclusive of VAT).
You will receive a £15.75 discount per fuel per year for taking paperless billing, to get this you will need to manage your account online.
If there are cheaper tariffs available you will be notified within the “Could you pay less” section on your bill. This tariff is only available on single rate meters.
If you do not pay us, we may seek to install a prepayment meter. If we install a prepayment meter, we will transfer you onto an appropriate prepayment tariff. You would then be required to pay for your energy in advance. Should we not be able to install a prepayment meter, including if you prevent us from doing so, we may seek to disconnect your supply.
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