Why can't I see my Government levy £170 reduction

Hi ​@costeek ,

OVO is currently working on setting this up - it’ll be applied to your tariff rates from the 1st April 2026 so you won’t see a direct credit, but you will see it over time in reduced bills.

This is all part of the governments energy cap that reduces from 1st April 2026. The energy cap will be coming down by 6.7% giving a reduction for the average bill payer of £1,641.00 per year a saving of £117.00. Your actual saving will depend on how much electricity and Gas used, the tariff and payment method.

Overall this has to be good news for the consumer at a time when fuel (Petrol & Diesel) is on the increase due to the situation in the middle east,

I understand that it’s not a direct credit, though it was never clearly explained. But apparently, the promised £170/117 reduction, which was mentioned many many times, is actually £23.90 in my case. A bit misleading, I would say.

Also, is this estimated being counted if I would pay this price 12 months in a row? Obviously, it is going to rise after three months. So, in reality, it is even less than that?

My frustration is more in general, rather than addressed to OVO. 

I think in November it was mentioned as £170 by some politicians. But even it’s £150 in average or £117 (instead of £170 – they sound similar, I could easily misheard it). But it’s annual, meaning – yearly. The first link you shared states: “£150 is what the average customer is estimated to save each year with the levy reduction”. But how it is each year if prices change each three months? And very likely it will go up in July. This all sounds very confusing to me. I’m just trying to understand how the said £117 (let’s assume I misheard it) in reality are £23.90 in my case?

Politicians speak with forked tounges.

What the political headlines say is very rarely true for everyone.

I wouldn't say I didn't know that. But that’s what I learned. My savings are going to be roughly £2 monthly next three months.

The saving is 3.54 p/kWh (so £2 is what you’d save from 56 kWh by virtue of the Chancellor’s benevolence). The problem is that other costs have increased.

Whenever any price changes are announced, whether by the government or by Ofgem, the changes are quoted for the “average customer” and for what those changes would mean for that customer if no other changes were made for the next 12 months. However, we have, now, a different price structure every three months. This method of reporting/quoting has always been nonsense, but it is hard to know what would be better.

According to Ofgem, the average (medium) UK household, typically 2-3 people, consumes roughly 2,700 kWh of electricity and 11,500 kWh of gas per year. I live in what Ofgem would describe as an average (medium) household of 2 people. However, my usage is: 2835 kWh of electricity and 5494 kWh of gas. This means that any figures quoted by the government or Ofgem would be different for me because of my personal usage.