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Best answer by Firedog

Updated on 25/08/26 by Abby_OVO

 

The government is cutting VAT on household electricity prices from 1 October 2026 to help with the cost of living.

 

If you’re an OVO customer, you’ll get the saving automatically, whether you’re on a standard variable or fixed rate tariff. You don’t have to do anything. Check out the topic below for more on how this impacts you:

 

 

I've just had my new energy prices, do they include the 5% VAT

 

How did you get them? If it was by email, isn’t there a footnote making it clear? My last one included this:
  

All prices and costs shown above include VAT at 5%. Your unit rates and standing charges might show differently on your bills/statements.

 

I haven’t had this quarter’s yet.
 

 

11 replies

Blastoise186
Super User
Blastoise186Super User
Super User
March 14, 2024

Looks like they do

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Firedog
Super User
FiredogSuper UserSolved
Super User
March 14, 2024

Updated on 25/08/26 by Abby_OVO

 

The government is cutting VAT on household electricity prices from 1 October 2026 to help with the cost of living.

 

If you’re an OVO customer, you’ll get the saving automatically, whether you’re on a standard variable or fixed rate tariff. You don’t have to do anything. Check out the topic below for more on how this impacts you:

 

 

I've just had my new energy prices, do they include the 5% VAT

 

How did you get them? If it was by email, isn’t there a footnote making it clear? My last one included this:
  

All prices and costs shown above include VAT at 5%. Your unit rates and standing charges might show differently on your bills/statements.

 

I haven’t had this quarter’s yet.
 

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
L
Rank 5
Lucky2Author
Rank 5
March 14, 2024

@Blastoise186 

Ok just checking cos my Rates & standing charges at the moment are

Day...31.63

Night..20.08

S.T....41.91

As you can see my email has different rates & standing charges for my Tariff I'm on now.

 

J
Rank 2
JNeve
Rank 2
March 14, 2024

Lets hope when my new energy plan starts it be cheaper. wont know until then . cant be as much as before. as prices have come down.

Firedog
Super User
FiredogSuper User
Super User
March 14, 2024

@Blastoise186

… my email has different rates & standing charges for my Tariff I'm on now.

 

Thanks for the screenshot. Can you confirm that there’s no mention of VAT in the email? If there isn’t, it’s a fault that ought to be fixed.  

If you multiply the figures you quoted earlier by 1.05, you’ll see that the difference is the VAT. 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
L
Rank 5
Lucky2Author
Rank 5
March 14, 2024

It seems it does have the VAT  included.

 

    Firedog
    Super User
    FiredogSuper User
    Super User
    March 14, 2024

    That’s a relief! Thanks for checking.

    Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
      I
      Rank 2
      IanFerguson
      Rank 2
      March 16, 2024

      I got my new prices as well yesterday and they are all inclusive of VAT and other green charges. As usual you have to read the tiny print at the end of the notification. Have to say it's a welcome reduction but raises so many questions? The hike of the cap to record levels was blamed on the Ukraine conflict. The conflict is still going on yet the cap is almost reduced by half despite.

      So much corruption in the energy market. Wholesale prices go up and consumer prices go up .

      One would assume this would be proportional. Not so. Hence excess profits and windfall taxes?

      The usual privileged clique have profited.

       

       

       

      Firedog
      Super User
      FiredogSuper User
      Super User
      March 16, 2024

      The hike of the cap to record levels was blamed on the Ukraine conflict. The conflict is still going on yet the cap is almost reduced by half despite.

       

      Energy prices in Britain are largely driven by the cost of gas. You can see in this chart the effect of the war in Ukraine on the wholesale price of gas; steps taken by both government and industry have mitigated the harm caused by the conflict. UK Natural Gas - Price - Chart - Historical Data - News (tradingeconomics.com) 

      Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
        P
        Newcomer
        pgooding
        Newcomer
        May 5, 2026

        Do the unit rates and standing charges shown in the list of plans and prices on the OVO website include VAT?

        Show more replies
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