Extended Fixed tariff - when are early exit fees payable?

I am so glad that you have brought this up. How do I find what fixes are available to me now even though there are more than 49 days before the end of my current fix? Many companies do not charge early exit fees if you remain with them and choose a new tariff.

​@Bendog All available tariffs are listed on the Our prices | OVO Energy page. Be sure to use the filters to cut down the number of repetitions.

Yes; the more oppressive regime was, I think, first introduced with the first Extended Fixed tariffs a couple of years ago. It’s good to see that it’s now been relaxed, but I’m just not sure how far OVO’s benevolence stretches. 

Thanks again. Some of the standing charges are eye watering!!!

Hey ​@Firedog 

I reached out to one of the tariff specialists about this who’ve clarified that OVO’s position doesn’t change contractually as a result of the recent updates. 

While the technical workaround to update unit prices involved replicating a tariff to apply the government discount, this is an administrative mirror of your existing agreement rather than a brand-new commercial "joining" event and so the contract end date remains the same, and with it, the renewal window and timing of exit fee application/exemption.

I hope this helps clear that up.

Thanks, ​@Abby_OVO  
  

Yep, it does, just as I thought. It explains the use of the odd ‘joining’ terminology. It means that customers who were early adopters of Extended Fixed offerings are treated less favourably than those ‘joining’ later. It looks as if customers should be advised to switch to Simpler Energy for a day or two during the 49-day window before joining the latest Extended Fixed contract if they want to be sure of enjoying the more relaxed exit fee regime. Is this an accurate assessment, do you think?

Just so that I understand completely: my Fixed Plan end date is August 6th. Can I choose a new plan now, without penalty, or do I need to wait until I am within the 49 day period?

Sorry, I couldn’t say. You’ll have to look up the terms for the type of fixed plan you’re on. There should be a link to them in the confirmation email you received when the contract started. They’re subject to change without notice - some would think this a little bit underhand, because you have to revisit the page regularly to spot any changes. But the early exit fee terms should be at least as clear as they are for my Extended Fixed plan ...  

Hey ​@Firedog 

I checked back in with the same specialist about this as I didn’t think that would be a necessary change and they’ve confirmed there’s no need to do anything differently during the renewal period.

During that 49 days you can select any tariff, which will start after the current contract ends, the exit fees won’t apply during that period, regardless of the amount.

Thanks again, ​@Abby_OVO 

Yeah, but that wasn’t ​@Bendog’s concern. He was asking about switching now, long before his 49-day renewal period starts. Until last August, it was the case with Extended Fixed plans that any switch prior to the renewal period would incur an exit fee. I don’t know whether the same applied to other fixed plans or, if it did, whether that also changed last year. That’s why I suggested he look up the terms for the specific plan he’s currently on.

It feels odd quoting myself BUT,as you said, this was my question. If I gambled on choosing a new fixed rate now, would I be penalised? This is what my “Terms and Conditions” page says.

This implies that I could change tariff with OVO as I am not changing supplier. I just wanted it confirmed that this was still the case before I make a choice. 

It is interesting how we have “contracts” that have a clause which says that its terms and conditions can be changed and that we just have to accept any changes made!! 

It feels odd quoting myself BUT,as you said, this was my question. If I gambled on choosing a new fixed rate now, would I be penalised? This is what my “Terms and Conditions” page says.

 

Fair enough. Did §6.1 say the same as mine?

You look to be good to go whenever you like, so long as you switch to another OVO tariff. I see that the one- and two-year fixed plans are just about identical, so how’s your crystal ball behaving? Do you foresee electricity prices plummeting in a year’s time?

  

It feels odd quoting myself BUT,as you said, this was my question. If I gambled on choosing a new fixed rate now, would I be penalised? This is what my “Terms and Conditions” page says.

 

Fair enough. Did §6.1 say the same as mine?

 

No. §6.1 says the same as §6.2 apart from it says “before 19 August 2024”. There is no mention of “changing plan”.

I really do not know what to do. I know that, if I do nothing and go onto the Simpler Energy Plan in August that I will, definitely, be hit by the large rise that, I think, is inevitable in July and any fixes will be less “advantageous” than now. However, what, if it happens, will be the effect of the “uncoupling” of gas and electricity prices that is being suggested? 

One thing, unless Ofgem change things again or OVO offers a “no standing charge” tariff, that we can, probably, be sure of is that standing charges are going to increase. I will have to play with some spreadsheets to see which way I should “jump”. 

(Incidentally, I am a “she”. Bendog is an online name that I have been using since around 1998!! There are some people I know who, even when we meet up in real life, still call me “Bendog”!!!)

Abject apologies 🙇‍♂️😳

Firedog is just as old, adopted by coincidence when I suddenly needed an alias at a site which didn’t allow real names. I’d learnt about my Chinese zodiac sign just the night before.

I’m old enough to remember when dogs were all male; ones that weren’t had their own descriptor - but using it quite innocently about my female Labrador retriever elicited a stern warning from the same site aforementioned. 
    

You should remember that the inevitable large rise in July is based on history; Ofgem are busily collecting data on current prices and will do so for another four weeks or so before announcing the new cap in Week 22. Fixes on the other hand are based on predictions, expectations of where wholesale prices and other charges might go in the future. An increase in the price cap will have no effect on fixed-price offerings.
  

I reckon this plan will take a long time to come to fruition. The current system is so entrenched that it will take a lot of unravelling, with hundreds of contracts dating back decades probably having to be renegotiated. I don’t expect any movement on this to affect household electricity bills until next year at the earliest.