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Contracts & Tariffs
Tracker Tariff
Key takeaways
A tracker tariff is a tariff where the price you pay follows a published reference (often wholesale prices or an index) plus a margin.
Prices can change daily or monthly depending on the tariff design.
Tracker-style pricing is more common in domestic, but the same “index-linked” idea can appear in business arrangements too.
What is a tracker tariff?
A tracker tariff is generally described as tracking wholesale energy prices and setting customer prices accordingly (often on a daily basis for domestic tracker products).
For business, you’ll also hear this described as:
- index-linked pricing
- market-linked pricing
- or a “formula tariff”
Same principle: the price moves with a reference rather than staying fixed.
What to check before choosing tracker pricing
- What exactly is being tracked (which index/reference)?
- How often does your price update (daily / weekly / monthly)?
- Is there any cap, collar, or protection against spikes?
- How does it combine with standing charge and any pass-through costs?
