New energy supplier Engie bids to shake-up sector with tracker tariff

Lightbulb lit up

A new challenger has entered the UK energy market, promising more transparency for consumers over bills and pricing.

French utility firm Engie has this week launched into the UK consumer market for the first time, with a range of fixed and green tariffs.

It also plans to release a tariff which tracks the wholesale cost of energy, called the Engie Tracker, this summer.

This means when wholesale prices fall your bills will drop. However when wholesale costs increase, consumer bills will also rise.

 

This rate will be calculated on a monthly basis and Engie says this will give consumers more transparency over the true cost of electricity and gas.

However, the provider will face competition from fellow new entrant Octopus Energy, which also plans to launch a tracker tariff this year.

Engie also says it plans to differentiate itself from the rest of the market by automatically switching fixed deal customers to the cheapest possible tariff when their fixed period expires, rather than onto a more expensive standard tariff.

It says many consumers are paying too much by remaining on the standard tariff of one of the “Big Six” providers - British Gas, EDF, E.on, Npower, Scottish Power, and SSE.

 

Energy regulator Ofgem says around 66% of households are currently on standard variable tariffs, which are usually more expensive than fixed deals.

Engie’s launch comes in the same week Prime Minister and Conservative party leader, Theresa May, promised to cap “rip-off” energy price rises.

Paul Rawson, divisional chief executive of energy solutions at Engie UK, says: “We are bringing a new kind of energy to the UK market, putting the customer at the heart of our business – to help save money, save energy and bring additional benefits to the wider community.”  

Published: 12 May 2017
Last updated: 12 May 2017

Leave a comment