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Question

Government Levy - April reduction

  • May 8, 2026
  • 5 replies
  • 120 views

Hello all,

I need some help with some information here that maybe I am misunderstanding.

I started a fixed rate tariff with OVO in mid september 2025 coming up to April my ovo account was closed due to an erroneous transfer, which I had sorted. Since then I have not seen the reduction I was expecting from April due to the government levy changes. In fact I have seen no reduction at all in my contract.

I called up and an agent told me that because I am currently below the market price cap they did not make any unit rate changes to my account, but as far as I am aware the levy should have been applied to all accounts including fixed rate regardless if they are already below the price cap. 

Am I correct in this regard, as this is what it sounds like it should be from information on OVO’s website, ofgem and martin lewis.

Thanks

5 replies

Blastoise186
Super User
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Hey ​@Chaosminion5254 ,

Sounds like you probably missed the letter/email due to that Erroneous Transfer, but there’s a 100% chance the reduction was indeed applied. It was to do with the levy reductions, so OVO did a global sweep of everything to push it through. It would have been applied to your Unit Rates so you should have seen those drop slightly. This change does not rely on the Ofgem Price Cap which is unrelated.

The agent was thinking of something else which isn’t relevant so don’t worry about that.


Abby_OVO
Community Manager
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  • Community Manager
  • May 11, 2026

Hey ​@Chaosminion5254 

 

Sorry to hear about the trouble you’ve had with all of this.

 

The Government Levy is for absolutely everyone, there are no exemptions so you should see this applied via the unit rates which should have updated April 1st - the contract should show this as the contract start date with your original contract end date still in place. We don’t have access to accounts here at the Forum so it’s a little tricky to tell what’s happened, especially adding in the Erroneous Transfer which can make things trickier. 

 

Would you be able to check your contract online for us? That would help us make sure if the levy has been applied or not and help us direct you to the next steps.

 

In the app you can check this by going to the ‘Bills’ section, and scrolling along the green bar until ‘View plan details’. You should see the contract start date as 1 April 2026.

 

Do let us know, and we’ll see what we can advise from there.


Hey ​@Chaosminion5254 ,

Sounds like you probably missed the letter/email due to that Erroneous Transfer, but there’s a 100% chance the reduction was indeed applied. It was to do with the levy reductions, so OVO did a global sweep of everything to push it through. It would have been applied to your Unit Rates so you should have seen those drop slightly. This change does not rely on the Ofgem Price Cap which is unrelated.

The agent was thinking of something else which isn’t relevant so don’t worry about that.

Thanks for confirming this its really appreciated


Hey ​@Chaosminion5254 

 

Sorry to hear about the trouble you’ve had with all of this.

 

The Government Levy is for absolutely everyone, there are no exemptions so you should see this applied via the unit rates which should have updated April 1st - the contract should show this as the contract start date with your original contract end date still in place. We don’t have access to accounts here at the Forum so it’s a little tricky to tell what’s happened, especially adding in the Erroneous Transfer which can make things trickier. 

 

Would you be able to check your contract online for us? That would help us make sure if the levy has been applied or not and help us direct you to the next steps.

 

In the app you can check this by going to the ‘Bills’ section, and scrolling along the green bar until ‘View plan details’. You should see the contract start date as 1 April 2026.

 

Do let us know, and we’ll see what we can advise from there.

Hi Abby,

Yes I have kept an eye on my contract which is a 1 Year fixed plan from 16 September 2025.

The start date still states this date in 2025 and I know that my unit rate before tax which is 24.20p hasn’t changed since my contract began. I have been in contact over the phone with agents and over email but I have had no luck or response regarding unit rates changing.


Abby_OVO
Community Manager
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  • Community Manager
  • May 15, 2026

Hey ​@Chaosminion5254 

 

Sorry you’ve not had great response from the teams on this. 

 

I would recommend opening a complaint if you’ve not already got one, or reopening one if you’ve already raised this and they closed the matter. The Price Cap isn’t related to or taken into account when the Government Levy should have been applied regardless. We do have a handy topic here on the Forum which explains how it works for each customer type, check it out below:

 

 

You can check out more on how it works here. There’s also another topic showing what the changes do look like online which may also be helpful:

 

 

Let us know how you get on.