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I've chosen a Fixed plan but might be better switching to Simpler Energy - Am I able to cancel my renewal and fix in again at a later date?

  • 30 October 2021
  • 12 replies
  • 165 views

I, wrongly maybe, as an OVO customer , started a Fixed Rate two year contract on 27th Oct.  Simpler Energy is much cheaper - for the present.  Can I change over to Simpler Energy and go bsck onto another Fixed rate contract in the future?

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Best answer by Jess_OVO 1 November 2021, 13:37

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Hi @brikath !

It sounds like you might still be in your cooling off period for this contract then, so you might be able to retract it and switch to the Simpler Energy tariff for now and go onto variable rate.

A word of caution though, variable rate tariffs offer absolutely no guarantees of locking in the rates and they can be changed at any time. The only reason Simpler Energy seems cheaper right now is because of the Ofgem Price Cap that applies only to variable rate tariffs and is currently resulting in suppliers making a loss, since the cap right now is below cost price. It’s very likely that it will massively increase within the next six months or so.

If you’d still like to do this anyway, the Support Team can discuss this change with you over the phone. Please call them on 0330 303 5063 and they’ll see what they can do. You will of course be able to switch back to a fixed rate deal at anytime, so you don’t need to worry there.

Thanks.  I’m actually out of the cooling off period as I opted for the Fixed rate deal just before the recent rapid price increases although it didn’t start until the old one stopped - on 27th Oct.  It looks as though I should move to Simpler Energy for a few months and then go back to Fixed rate.

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You’re welcome.

This might sound counter-intuitive, but it’s also worth thinking about keeping the fixed rate deal you currently have anyway and waiting to see what happens. The market is pretty volatile right now and if you switch to Simpler Energy now, you might not be able to get the same rates again that you currently have now. They could be better in the Spring, but they could also be worse.

However, I can say this and it might help you out. If you locked in the deal just before the rates went up, your contract will honour the old rates. It’s based on when you signed on the dotted line rather than when the contract actually starts after all. If you check the Plan section in MyOVO now, you’ll see what your new rates are and they should be the ones you agreed to upon renewal.

I got lucky as well and locked in a cheap two year renewal deal with OVO literally one day before things started going wild, so you might have been lucky as well.

I think I may have missed the best rates by a couple of days.  My rates are 25.47 per kWh for electricity and 6.54 per kWh for gas which I suspect are higher than yours.  If I had done it when OVO first sent out their email reminding me that the old deal was coming to an end I would be laughing!

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Whoops! I guess that’s something you’ll do much faster next time then?

Sometimes, it really is luck of the draw and having to be lightning fast with these things. I’m electric-only as my flat doesn’t have a gas supply at all, but my new rates are pretty close to what they were before. Still, what you have there probably isn’t too bad and at least they’re guaranteed for the entire contract regardless of what happens. :)

I did try to look up the current limits for the Ofgem Price Cap, but I’m afraid they’re not available as Ofgem doesn’t publish them openly - and to be fair, it does also vary depending on your area (and probably other factors). OVO would be able to tell you what’s available if you chat with the Support Team, but I strongly recommend thinking carefully before making any decision. Not least because the combined £60 early exit fees could wipe out any potential savings you might have made by going to the Simpler Energy tariff.

Personally, I’d probably argue that if the savings by going to variable rate are estimated as being less than say, £80 combined for both gas and electricity, then it’s not worth breaking contract - especially since those savings would erode if the prices go up again!

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Hi @brikath and Welcome to the OVO online community!

 

I, wrongly maybe, as an OVO customer , started a Fixed Rate two year contract on 27th Oct.  Simpler Energy is much cheaper - for the present.  Can I change over to Simpler Energy and go bsck onto another Fixed rate contract in the future?

 

Just to confirm - this is of course an option for you. As you’ve only just renewed you’ll be able to cancel this renewal within the first 14 days of your new contract without incurring any exit fees. Worth contacting our Support Team ASAP to request a cancellation (if this is what you decide to do).

 

Once you’re on the Simpler plan you’ll be able to see a link to check the current fixed rate prices via a link on the Homepage of your online account or OVO app (download for Android or iOS) - if you did want to keep an eye on things over the next few months:

 

Exact appearance may vary

 

Hope this helps! 

Thanks - I’ve just come of the phone to OVO and have moved to Simpler Energy.

I live in a 2 bedroom ground floor flat that is electricity only (no gas) and as my fixed rate comes to an end in mid January 2022, I switched to another fixed rate for 3 years.

However, I am mulling over whether to switch to the variable rate as at the moment it is cheaper but as I am outside the 14 day period it will cost me £60 to do so. I then wondered whether to switch back to a fixed rate later after the price cap review. 

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Hey there @Daisylou !

That’s a really, really good question and I’m glad you asked. I’m Blastoise186, one of the forum volunteers here. I don’t work for OVO myself and can’t access your account, but I can give you some advice that might help you out.

Personally, I’d probably stick with the deal you have right now, because at least it’s guaranteed for the entire term. While you could back out and switch to the variable rate Simpler Energy tariff by paying the early exit fee, the next price cap review is likely to happen in just a few weeks time. The chances therefore of you realistically making a saving in the meantime are probably negligible. You also won’t be able to get the current deal back if you cancel it now, so you’ll be at the hands of whatever the market throws at you both for the variable rate deal and for the new fixed rate deal if you choose to switch back.

The fixed rate deal you’re on right now also means the rates are guaranteed for the next three years no matter what happens. Even if the market goes crazy and shoots up and down in the meantime, you won’t be affected. It’s a benefit that you won’t enjoy on a variable rate tariff.

If you want to take the gamble, you can discuss this with the Support Team from the 4th January 2022 and they can make the arrangements. But I’d personally say now is not the time to be changing the tariff again as you’d be taking a huge gamble.

In actual fact, even if you renew with OVO before the existing deal expires, OVO will actually make it so that you’ll use up the remainder of the existing deal before the new one automatically activates. Given that you mentioned it runs out next month, then I’d say the benefits of variable rate would be totally wiped out in the exit fee alone and you’d probably lose out.

It’s great to see that you’re considering the options though! I hope this advice helps. If you’re still unsure about something, feel free to reply to this thread and I’ll be notified. If you need a hand with anything else, feel free to stop by and we’ll be happy to help.

Happy New Year!

Hello @Blastoise186,

Thank you so much for your reply. I had been mulling it over (yes I know on New Years Eve!) and I was beginning to come to the same conclusion that it was a gamble that was not worth the risk. 

I think part of it was the hike in the price but a bit like my mortgage, I feel safer that it is fixed for a couple of years. 

I had not realised that the price cap review was so soon, I had thought it was in the Spring.

It was a Martin Lewis video that had triggered my thoughts of switching to the variable but as you point out the savings will be wiped out by the exit fee.

Happy New year 🎉 ✨ 

 

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No worries. Unlike Martin Lewis, I don’t get paid by anyone to help out. But I also have a LOT more free time to be able to do my research and keep an eye on things. Six days a week in fact is what I’m able to dedicate to this forum right now. :)

I use that time wisely…

But yes. If it had been a few weeks ago, I would have considered recommending the variable rate options without hesitation. Unlike almost everyone else who gives this advice though (especially compared to the press), I’m more agile and have the ability to rapidly adapt the advice I give. It was actually just in the last week that I’ve changed tactics and started leaning towards the advice I’ve just given.

And don’t worry about the timing. Last year, there was literally one person who asked for help on Christmas Day right as I came online. Hehehe

Userlevel 7

 

I had not realised that the price cap review was so soon, I had thought it was in the Spring.

It was a Martin Lewis video that had triggered my thoughts of switching to the variable but as you point out the savings will be wiped out by the exit fee.

Happy New year 🎉✨ 

 

Happy New Year, @Daisylou :dizzy:

 

Great to see you’ve been mulling over your renewal options even during the festive period!

 

Just wanted to jump in here to clarify a couple of points which may or may not change your decision-making:

  • All our fixed plans offer a 2 week grace period which starts on the first date of your new contract, this means you’ll still be able to change your mind and cancel your plan even if you signed up to the new plan when your renewal window opened a couple of months ago. To cancel the plan reach out to the Support Team who will be able to get this reversed without applying the exit fees as long as it’s not more than 2 weeks since the new plan took effect.
  • Currently the Variable Price Cap is reviewed in April and October which means the prices on our Simpler plan may increase in the spring. If you choose to roll-on to this plan at the end of your current fixed plan we’d always give you at least 30 days notice of any upcoming price changes.

Hope this helps you decide on the best option for you going forward. :slight_smile:

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