Price cap changes: supporting our members

With no explanation at all a 21% jump in electrical fixed charges - against a backdrop of at the most 10% inflation.

Why are we all coerced into this??

The price-capped standing charge will increase on 1 April from 46p/day to 53p/day including VAT. That’s a rise of just over 15%.

While standing charges were invented to cover the fixed costs of delivering energy (e.g. the installation, maintenance and renewal of the pipes, pumps, cables, switchgear and meters required), they have also in the past couple of years provided a way to cover the costs involved, for example, in bailing out customers of failed suppliers. Most recently, they have been adjusted in response to the government’s Robin Hood policy of bringing down the rates charged to consumers with pre-payment meters.  

The standing charge currently represents almost 7% of the total cost of electricity for the average household. From 1 April, it will still be less than 8%.

What would you rather see?

Regrettably you are incorrect the standing charge that I have been informed id from 50.66 to 61.67!!

a 21% increase!!

Standing charge varies by region and payment method. So i can only guess this is what you are seeing. 

OFGEM set the maximum standing charge by region and payment method for the default priced capped variable tariff.

The cost for each region is different for both unit rates and standing charges. Some regions will be a bit less than the average across the country, some a bit more.

We may see dramatically different pricing at  very local level as we transition to net zero and time of use tariffs. 

There are no government plans to smooth regional differences in standing charges or unit rates. 

Is it worth taking up the OVO offer of contract renewal when all the experts suggest holding out and see what happens at the end of June 2023

Lots of questions on this @Rogers2 and it’s not easy to come to a conclusion is it?

Its a bit of an each way bet, either to fix or wait. But obviously up to you

My Standing charge is increasing also to £61.89 - a 21% increase. 

This despite, many attempts to reduce electricity consumption.

Dear Ovo, if you are committed to Green Energy, why has gas standing charges on my account only gone up by 0.63p???  

I think all your customers are waiting for electricity prices to genuinely fall, rather than placing a loss adjustment on standing charges. 

Yes, some of us are in receipt of Government benefits, but for all the talk of gas price increases, and delivery costs from alternative sources, I cannot fathom why this standing order levy has been applied in this way. 

Hey @Crafyrose,

Thank you for your question,

@Jeffus has given a really great response here:

Maximum standing charges are set by OFGEM, not OVO, you can find out more about the Price Cap increases here.

April to June 2023 - are we getting anymore Gov money I am Pensioner and Disabled - I am confused?

If you’re talking about Cost of Living payments that are the Energy Bill Support Scheme, Alternative Fuel Payment or Warm Home Discount, then those are finished now and they’re closing down - WHD will be back later this year.

All others are beyond OVO’s control. The DWP will let you know when they’re coming