I'm on a fixed plan - Will the price cap increase affect my direct debit amount?

@coco34ymail.com 

The price cap and now the governments energy price guarantee (EPG) impact prices - both standing charges (price cap only) and unit rate (prices cap and EPG cap).  The prices charged on variable rates for an average user (3,100 kWh of electricity and 12,000 kWh of gas) will compute to circa £2,500 per annum from 1 October (plus or minus a bit because the prices are regional).

I haven’t a clue what prices your fix has.  Some existing fix prices will be below the new variable rates, some fix prices will be reduced to bring them into line with the new variable rates, but some, even after the government rate reduction, will be above the variable price capped figures. The new variable capped figures these will apply for 2 years (unit prices only) so although notionally variable are in essence fixed.

Since the new rates apply from 1 October (tomorrow) , if you log into your account after that you should see your new rates and whether or not they’ve changed.  Since you are on a fix any change will be a reduction.  It will be for you to compare the prices relative to your consumption to identify whether exiting your fix for a move to the variable rates will be worthwhile.

The £2,500 figure bandied about is for those specified amounts of consumption, but if you use more your bills will be higher. Use less and your bills will be lower.

If you think that OVO or any other supplier is making shedfulls of money out of all this - then you are sadly mistaken.  Why do you think 20+ suppliers went bust last year?  Why was Bulb effectively nationalised by the Government? There are excess profits being made by some companies and some nations, some companies even in the UK, but it's not the suppliers who are making money.  There were even recent concerns, now allayed, that OVO was likely to breach its banking covenants.  So, it doesn’t help to make wild assertions on these matters without having the facts to back them up.  You came here for help and you have been given it.  Post back when you’ve something to say after 1 October.

If you’re not happy about this, then https://ovoenergy.com/feedback is your best bet.

But you might want to think carefully. The EPG only lasts six months now, not two years.