Due to the delay in the government setting out a plan I signed up to a 2 year fixed deal that works rates that are more than the current maximum rate set in the recent government plan. Will my contract rate be capped and therefore reduced?
Best answer by Emmanuelle_OVO
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Yes but if you are within 14 days you can exit under cooling off provisions. Prior to 1 October you are probably paying higher rates than the current cap and I don’t know whether OVO will refund these. Customers are being advised to do nothing, which implies that customers adversely affected will be compensated but detail is hard to find.
Being on a fix. Will I automatically go to the new rate on October 1st ? if my fix is more expensive?
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I believe so, the best way to find out is to see what happens on the 1st October though.
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This is a copy from the government website about how the Energy Price Guarantee works for those on a fixed rate.
The only thing to add is related to the last sentence. OVO are offering fee free transfers from fixed to the Simpler Energy tariff. This will help people on very high fixed rates highlighted in bold.
According to the OVO twitter feed today
"We're not able to confirm the rates yet. However, we're releasing information about the finalised rates, tomorrow, for our members."
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If you’re on a fixed rate tariff
For those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.
Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.
For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.
Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. Any transfer to a different tariff is a matter for suppliers.
Updated on 19/10/23 by Abby_OVO:
For all the up to date advice, see this page dedicated to the Energy Price Guarantee. We’ll keep that page updated with any changes as and when.
The £2,500 cap is for both fixed and variable customers.
If you pay by Direct Debit, we’d recommend you leave this unchanged until any price changes have been made in October. That way you know you’re paying the right amount.
If you don’t have a smart meter that sends us your readings remotely every day, we’d recommend you submit a manual meter reading this week or next via your online account.
We’ve also got a page with FAQs dedicated to the Energy Bills Support Scheme.
And OVO’s Customer Support Package: everything you need to know
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Yes but if you are within 14 days you can exit under cooling off provisions. Prior to 1 October you are probably paying higher rates than the current cap and I don’t know whether OVO will refund these. Customers are being advised to do nothing, which implies that customers adversely affected will be compensated but detail is hard to find.
OVO are waving the fee for those that want to exit fixed plans, even if they are outside the 14 day period according to
According to the OVO Twitter feed today
"We're not able to confirm the rates yet. However, we're releasing information about the finalised rates, tomorrow, for our members."
So not long to wait
I read this from Martin Shaw, but how can I request this from OVO pleaee?
If my fix is more expensive than the price guarantee, can I leave exit penalty-free?
The Government said "this is up to firms" BUT I've good news...
In the energy summit at MSE Towers on Tue 13 September with the big firms' CEOs, all firms there - Brit Gas, Ovo (SSE), Octopus, EDF, E.on, Shell - agreed to my request that customers who end up on fixes at a higher rate than the price guarantee WILL be allowed to move on to that firm's price guarantee tariff, with no early exit penalties, until at least 15 Nov (some beyond that).
So my fixed rate tariff is above the price cap. My latest bill is charging me over 37p/kw which is incorrect as no one should be paying more than 34. Now ovo are trying to increase my direct debit! But my bill will be coming down. Please confirm my bill will be backdated to 1st October. I do NOT want my dd increased.
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Hi
It might be that you’re in a position where there’s little to gain from being moved to the variable rate tariff. However, if you really want to switch to it anyway, you have that option. Please get in touch with the Support Team and they can discuss this with you.
i am on a 2 year fixed 21 june 2022 will my prices come down
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Probably not at this point. EPG only lasts until April, so you’re better off with things left alone.
ovo has reduced my unit price for gas and electric should my daily standing charge be reduced as well
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Standing Charges aren’t part of EPG so they’ll not necessarily be lowered.
ok thanks
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