Is a tracker energy tariff cheaper than the UK price cap?
Tracker tariffs can be cheaper than the Ofgem price cap in some periods—but they can also rise quickly. Compare whole-of-market home energy deals with EnergyPlus and find a tariff that fits your risk level and budget.
- See whether a tracker could beat a price cap variable tariff for your usage
- Compare whole-of-market options (tracker, fixed, variable and smart tariffs)
- Switch with confidence: understand unit rates, standing charges and exit fees
EnergyPlus is a UK home energy comparison service. Results depend on your postcode, meter type and usage. The Ofgem price cap is a cap on unit rates and standing charges (not a cap on your total bill).
So—are tracker tariffs cheaper than the price cap?
Sometimes. A tracker energy tariff can cost less than a price cap-level standard variable tariff (SVT) when the tracked market price is low. But because trackers move (often daily or monthly), they can also become more expensive quickly—especially during volatile wholesale periods.
The right choice depends on your meter type (credit vs prepay vs Economy 7), your region, and whether you can handle bill swings. The easiest way to decide is to compare the actual unit rates and standing charges available at your postcode.
Important: The Ofgem price cap is not a cap on your total bill. It limits the unit rate (p/kWh) and standing charge (p/day) suppliers can charge on default tariffs.
If you want stability
A competitive fixed tariff can protect you from sudden spikes—often preferred if you budget tightly or want predictable monthly Direct Debits.
If you want potential savings
A tracker can undercut the price cap at times, but works best when you’re comfortable monitoring changes and switching again if needed.
Get your personalised comparison
Check tracker, fixed and variable deals available for your home. It takes a couple of minutes.
By submitting, you’re asking EnergyPlus to show available home energy tariffs. We’ll use your details to provide results and support your switch.
Tip: If you have Economy 7 or a smart meter, tell us during your quote journey—your best option can change significantly.
Quick risk check: If a 20–40% jump in your unit rate would cause stress, a tracker may not be the best fit unless you have a clear plan to switch quickly.
Why people compare tracker vs price cap tariffs
Potential to pay less than cap-level SVT
When wholesale prices fall, some tracker tariffs can drop faster than a price cap-level variable tariff.
Transparency (you can see what drives prices)
Trackers typically follow a published index or supplier method, so price movements can feel less mysterious.
You’re not locked in for long
Many trackers have low or no exit fees—useful if you want to move to a fix when rates look attractive.
Price cap changes are periodic
The Ofgem cap updates on a schedule, while trackers can move more often—good or bad.
Standing charges still matter
A tracker with a low unit rate can still be poor value if the standing charge is high for your region.
Your usage pattern decides the winner
High usage homes feel price swings more. Low usage homes may care more about standing charges.
What is the Ofgem price cap (and what isn’t it)?
The Ofgem price cap limits what suppliers can charge customers on default tariffs (typically Standard Variable Tariffs) for:
- the unit rate (pence per kWh) for gas and electricity
- the standing charge (pence per day)
It does not cap your total bill. If you use more energy, you pay more—even if you’re “on the price cap”.
Good to know: The cap level varies by region and payment method (e.g. Direct Debit vs prepayment).
What is a tracker energy tariff?
A tracker tariff is a tariff where your price moves in line with a reference (often wholesale market movements), plus the supplier’s costs and margin. Depending on the product, rates may change:
- daily (some of the most “true” trackers)
- monthly (a smoother version of tracking)
- or when the supplier updates in line with their methodology
Some trackers include a cap/floor on unit rates or a maximum daily movement; others don’t. Always check the tariff details.
Tracker vs variable price cap: what’s the difference?
A price cap variable tariff changes when the cap changes; a tracker can change much more often. That means trackers can fall faster—but they can also rise faster.
When can a tracker be cheaper than the price cap?
1) Wholesale prices are falling or stable
If the tracked reference drops, your unit rate may drop too—sometimes before a price cap update would reflect that change.
2) The tracker’s standing charge is competitive in your region
Two homes with the same usage can see different outcomes because standing charges vary by distribution area.
3) You can switch again quickly if prices turn
If you can act fast when the tracker stops being good value (for example, moving to a fix), you reduce the risk of overpaying.
4) Your usage pattern suits it
If you use more energy in periods when rates tend to be lower, the savings can add up. If you use a lot during spikes, it can hurt.
Risks and trade-offs to understand
Tracker tariffs aren’t “good” or “bad” by default. They’re a trade-off between potential savings and price uncertainty.
- Volatility: your unit rates can move frequently, so monthly bills can vary.
- Budgeting: if your Direct Debit is set too low, you may build up a balance during higher-rate periods.
- Timing risk: the tracker could be cheap today but expensive next month.
- Tariff rules: some trackers have minimum terms, exit fees, or caps/floors—check before switching.
- Standing charge impact: especially important for low usage homes or properties left empty.
Who a tracker tariff tends to suit
A tracker may suit you if:
- you can tolerate bill changes and keep an eye on rates
- you’re comfortable switching again if the deal stops being competitive
- you want exposure to price falls without locking into a long fixed term
A fixed or capped option may suit you if:
- you need predictable monthly costs
- a sudden rise would cause financial pressure
- you prefer “set-and-forget” pricing for a term
Tracker vs price cap: what to compare (not just the headline)
To decide which is cheaper for your home, compare the full cost picture. Use the checklist below when you view results on EnergyPlus.
| What to check | Why it matters | Tracker vs price cap tip |
|---|---|---|
| Electricity unit rate (p/kWh) | This is the biggest driver for most homes. | Trackers can beat cap-level SVTs when markets fall—watch how often it changes. |
| Gas unit rate (p/kWh) | Gas usage is typically higher in winter, amplifying swings. | If you have high gas usage, consider whether you can handle winter volatility. |
| Standing charges (p/day) | You pay this regardless of usage; varies by region/meter type. | A low unit rate can be offset by a high standing charge—especially for low users. |
| Price change frequency | Daily trackers behave very differently to monthly trackers. | More frequent changes = more responsiveness and more volatility. |
| Exit fees / minimum term | Affects your ability to leave if the tracker rises. | If you’re choosing tracker for flexibility, prioritise low/no exit fees. |
| Meter type (smart, Economy 7, prepay) | Some deals are restricted or priced differently by meter type. | Economy 7 customers should compare day/night rates, not averages. |
Practical rule: If a tracker is only slightly cheaper today, it may not be worth the uncertainty. If it’s meaningfully cheaper and you can switch again easily, it may be worth considering.
Regional and household factors that change the answer
Where you live
Price cap levels and standing charges vary by distribution region. A tracker that’s strong in one area may be average in another.
How you pay
Direct Debit, pay on receipt, and prepayment can have different prices. Compare like-for-like to avoid surprises.
Your energy profile
Electric heating, EV charging, heat pumps and large households can amplify the impact of unit rate changes.
If you have a smart meter
You may have access to a wider range of tariffs. Even if you’re focused on a tracker, it’s worth comparing smart and fixed options alongside it.
If you’re on prepayment
Availability can differ. Comparing whole-of-market options helps you see what’s genuinely available for your meter and payment method.
FAQs: tracker tariffs vs the UK price cap
Is the price cap the cheapest tariff available?
No. The price cap limits prices on default tariffs, but suppliers can offer tariffs below it (including some trackers and fixed deals). The cheapest option depends on your postcode, meter type and usage.
Can a tracker ever be more expensive than the price cap?
Yes. If the tracked price rises, your rates can rise above a cap-level SVT. That’s why it’s important to compare the current rates and understand how quickly they can change.
Do tracker tariffs have exit fees?
Some do and some don’t. Always check the tariff’s terms (minimum term, exit fee, and how price changes are calculated) before switching.
Is a tracker the same as a variable tariff?
Both can change price, but they change for different reasons. A price cap variable tariff changes broadly in line with Ofgem’s scheduled cap updates; a tracker follows a tracking mechanism (often linked to market movements) and can change more frequently.
Will a tracker help if I’m trying to reduce my bills?
It can, but it’s not the only lever. A cheaper tariff helps, and so does reducing consumption. When comparing, focus on your expected annual cost based on your usage, not just the unit rate.
How do I know if I’m on a price cap tariff now?
If you’re on a Standard Variable Tariff (or default tariff) with your supplier, it’s typically capped. Your bill or online account should show your tariff name. If you’re unsure, compare with EnergyPlus and we’ll help you identify what you’re on during the journey.
Looking for the next step? Jump back to compare tracker vs price cap and see what’s available for your postcode.
What EnergyPlus customers value
“I didn’t realise the price cap wasn’t a cap on my bill. Comparing unit rates and standing charges made it clear which deal suited us.”
Homeowner, North West
“We wanted a tracker but needed to know the risks. Seeing alternatives next to it helped us decide.”
Flat owner, London
“The comparison was quick and showed deals I hadn’t seen elsewhere. We switched to a fix once the numbers worked.”
Family household, Yorkshire
Trust indicators: Whole-of-market comparison approach • Clear tariff breakdowns • UK home-energy focused guidance
Ready to see if a tracker beats the price cap for your home?
Compare tracker, fixed and variable tariffs available at your postcode. Focus on the real cost: unit rates, standing charges and terms.
Switching availability depends on supplier criteria and your meter setup. Always review tariff terms before proceeding.
Fast checklist before you choose
- Is the standing charge competitive in your region?
- How often can the price change (daily/monthly)?
- Any exit fees or minimum term?
- Does it suit your usage (high/low, Economy 7, EV)?
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