A tracker energy tariff is a type of variable tariff where the price you pay for gas and electricity is linked to wholesale energy costs, rather than being fixed.
Energy suppliers calculate tracker prices using a formula based on wholesale costs, which means your unit rate can go up or down over time.
If wholesale prices drop, your unit rate falls
If wholesale prices rise, your unit rate increases
Your monthly bill will change depending on the current rate and how much energy you use.
Yes, and this is one of the most important things to understand.
Tracker tariffs are directly exposed to market movements. Prices can fall, but they can also rise quickly, especially during periods of high demand or supply disruption.
Some tariffs include caps or limits, but many do not.
They can be, but it depends on market conditions.
When wholesale prices are falling, tracker tariffs may be cheaper.
When prices are rising, fixed tariffs often offer better value.
Like any energy tariff, tracker deals come with both potential benefits and risks to consider.
Potentially cheaper than fixed tariffs
Benefit from falling market prices
Often no or low exit fees
Transparent pricing linked to the market
Prices can rise quickly
Harder to budget month to month
No long-term price protection
Not ideal if you prefer certainty
Here’s how tracker tariffs compare with other common energy tariff types:
Feature | Tracker tariff | Fixed tariff | Standard variable tariff |
|---|---|---|---|
Price certainty | ❌ | ✅ | ❌ |
Follows wholesale prices | ✅ | ❌ | ❌ |
Affected by price cap | ❌ | ❌ | ✅ |
Risk level | High | Low | Medium |
Flexibility | High | Low | Medium |
Tracker tariffs and standard variable tariffs are both variable, but they work in different ways.
Standard variable tariffs (SVTs) are the default tariffs most people move onto when a fixed deal ends. Their prices are capped by Ofgem’s energy price cap.
Tracker tariffs, on the other hand:
Are not directly limited by the energy price cap
Follow wholesale prices more closely
Can change more frequently
Tracker tariffs can be cheaper than SVTs, but they can also be more expensive.
If wholesale prices fall it will reduce your monthly bill, but if prices rise your costs will increase. For example:
Month 1: £120 bill
Month 2 (prices fall): £105
Month 3 (prices rise): £135
This variability is the key trade-off when considering a tracker energy tariff.
If you’re unsure, comparing tracker tariffs alongside fixed and standard variable deals can help you decide which option suits your budget and risk level.
A tracker tariff may suit you if you:
Are comfortable with price fluctuations
Can afford potential increases in your bill
Want to benefit from falling energy prices
Don’t want to be locked into a long-term contract
A fixed tariff could be better if you:
Prefer predictable monthly bills
Are on a tight budget
Want protection from price increases
Don’t want to monitor energy market changes
You can also compare tracker tariffs with other common tariff types to find the best fit for your needs:
Fix your unit rate for a set period, giving you price certainty and protection from market increases.
A flexible tariff with no fixed end date, where prices are capped by Ofgem but can still change periodically.
Pay for your energy in advance using a meter, helping you control spending but often with fewer tariff options.
Comparing tracker tariffs is quick and works in the same way as comparing any other energy deal.
Enter your postcode and a few details about your energy usage so we can show you relevant deals.
Compare available tariffs, including tracker, fixed and standard variable deals, to see how they differ on price and features.
Pick the tariff that suits you and switch online in just a few minutes. Switching is simple, and your energy supply won’t be interrupted.
A tracker energy tariff is a type of variable tariff where your gas and electricity prices follow wholesale market rates. This means your unit rate can go up or down regularly, depending on changes in the energy market. Unlike fixed tariffs, there’s no set price for the length of your deal.
Tracker tariffs can be riskier than fixed deals because prices aren’t guaranteed. If wholesale energy prices rise, your bills can increase, sometimes quickly. However, if prices fall, you could benefit from lower costs. They’re generally better suited to people who are comfortable with some uncertainty.
In many cases, yes. Tracker tariffs often come with low or no exit fees, making them more flexible than fixed deals. However, this depends on the specific tariff and supplier, so it’s important to check the terms before signing up.
No, tracker tariffs don’t follow the Ofgem energy price cap. The cap applies to standard variable tariffs, not tracker deals. Instead, tracker tariffs are linked directly to wholesale energy prices, which can move more frequently.
Availability depends on the market and individual suppliers. Some providers offer tracker tariffs when wholesale prices are relatively stable or falling, but they may withdraw them during periods of high volatility. Comparing deals is the best way to see what’s currently available.
This depends on the tariff, but many tracker tariffs update daily based on wholesale market prices. Some may change weekly. Your supplier should explain how often your rates are reviewed and updated.
They can be, but not always. When wholesale prices are low, tracker tariffs may work out cheaper than the price cap. However, because they aren’t capped, prices can also rise above it if market costs increase.
Some tracker tariffs include a maximum price cap or limit, but many do not. This means there may be no upper limit on how high your unit rate can rise. Always check the tariff details to understand any protections in place.
Yes, most tracker tariffs include a standing charge, just like other types of energy tariff. This is a fixed daily cost that covers maintaining your connection to the energy network, regardless of how much energy you use.
Yes, but you may need to pay an exit fee if you leave your fixed tariff early. It’s worth checking whether any potential savings from switching outweigh the cost of leaving your current deal.
Tracker tariffs can be worth it if you’re happy to take on some risk in exchange for the chance of lower energy bills. They’re not the best option for everyone, so it’s important to compare them with fixed and standard variable tariffs before deciding.
Reviewed on 15 May 2026
