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Firedog
Super User
Super User
December 15, 2023
Solved

Price cap increases- To fix or not to fix?

  • December 15, 2023
  • 217 replies
  • 5948 views

Customers on variable tariffs (SVT) are being notified these days of tariff increases from 1 January. At the same time, many are being given the opportunity to switch to a fixed-rate tariff. I am trying to decide whether it would be a good idea to fix, but I’m not sure I have all the information I need. Gas hasn’t been invented yet in my corner of the world, so I’m only interested in electricity tariffs.

Cornwall Insight are a well respected crystal-ball gazer where energy prices are concerned. Their predictions for 2024 show small ups and downs in unit prices, but one startling forecast is for a hike in the standing charge of the order of 15% on 1 April. For a light user like me, this is hugely significant. On SVT, the standing charge would amount to 37% of my bill in January, but by October this would have risen to more than 41%. The fixed rates I’m being offered would keep the standing charge at more or less the current level, so that makes fixing look like a good idea. 

But … we know that Ofgem are considering changes to the way standing charges are calculated and applied. If by some miracle any change were to be implemented before 1 October next, would I miss out on any benefit this might bring? I guess the answer to that is Yes, but that it’s not very likely any change will happen by then. Agree?

And does anyone know the reason for the increase in standing charges predicted for 1 April next? Are we going to be paying for the cost of bailing out Bulb customers?

 

Best answer by BPLightlog

Updated on 29/08/25 by Ben_OVO

The Energy Price Cap, set by Ofgem, is normally changed on 01/01, 01/04, 01/07 and 01/10 each year. The price cap can go up or down and, if you’re on the standard variable tariff (Simpler Energy) then your rates will go up or down to match the price cap change. We offer fixed tariffs for one or two years. If you opt in for a fixed tariff then your rates will be fixed, and protected from price cap changes. If you’re up for renewal, or are currently on the Simpler Energy plan, you can switch to a fixed tariff via your online account or app (see below).

 

 

I’ve been asked about the question ‘to fix or not to fix’ often in the last few months and I always offer the same answer .. how comfortable are you with the possibility that prices might increase over the next year?

There are no two ways about it .. it is a gamble. I liken it to taking out insurance (the optional sort) where it’s a calculation as to the possibility of an expense for a loss/damage compared to - for the most part - having financial cover for those things.

Back in 2021 we fixed our energy rate for 2 years and almost everybody told me that it was at too high a level. Little did I (or anybody else) know about the pending war in Ukraine and the problems with supply from the Russian pipeline.

This time, despite the outlook, we have not fixed .. although, in effect, our tariff is a constant variable if that makes any sense. All of that is why I’ve invested in solar PV, battery storage, a Ripple community solar park and a small wind generator, so that we have a degree of self/low generation support whatever happens

217 replies

Nukecad
Super User
Super User
May 15, 2024

@Emmanuelle_OVO I’ve just finished on the phone with support and the agent I was talking to can’t see any reason for it, accounts can’t see any reason either.

it doesn’t look like an erroneous transfer.
An erroneous transfer to OVO wouldn’t have my existing account number to appear on my account page when I login.
If it were a transfer from OVO then it wouldn’t say they were putting me on supply on the 18th.

Whilst on hold talking to the agent I did have a thought about what could have caused it, but she says there is nothing showing that could confirm it.
In my recent dealings with the Forum Support Team regarding isues with FACs it was identified that Xoserve have/had an incorrrect MSN for my gas meter. (So didn’t have any readings from my actual meter).
It may be that Xoserve have now corrected that MSN, and it is that meter number correction/change at Xoserve that has trickled back to OVO and has generated an automated ‘Switch’ message?
Even though OVO had the correct MSN, so they should now be the same at both OVO and Xoserve.
(Someone at OVO may be scratching their head wondering why Xoserve say that I’ve changed my gas meter to the one that I already have showing on my account).

So I told support to just make a note my contact and we’ll leave things for a couple of days to see what happens next.

At the moment it means that I can’t access my account online at all, the only thing I can see is that ‘Switch’ message.

PS. I haven’t had any emails in regard to this supposed ‘Switch’ at all, which is interesting in itself.

I said, Hey - Watts going on.
Rank 2
May 15, 2024

I found the latest "1 Year Fixed Loyalty" offer on the Get an energy quote page, which mentioned that I could get the renewal quote through my online account.

However, when I log into my account, I cannot find the offer. Is it intentionally not shown to customers already on the fixed plan?

Nukecad
Super User
Super User
May 15, 2024

As you can see from the above I can’t access my online account at the moment.

However I did look at the renewal section last week and it just said that it couldn’t offer me any until nearer my current Fixed Plan end date.

As for your not being able to find it:
Some/many/most browsers now block out certain parts of the account pages.
(It’s because they changed their default security settings and the new settings don’t like how certain parts of the pages have been coded).
Changing your browsers security settings from ‘Strict’ to ‘Standard’ and then refreshing the page usually allows them to be seen again.
(Also try pausing any ablockers, security add-ons, etc. that you have installed and refreshing the page).

I said, Hey - Watts going on.
Rank 2
May 15, 2024

I found the 'Renewing your contract' page, but even after following the instructions, I couldn't locate the renewal offer within My OVO. However, I discovered that you can obtain the latest offer by going to 'Get an energy quote' after entering your postcod and address:

 

The above offer is definitely more favorable than my current plan, particularly regarding the standing charge. I did not proceed further from this point because there is no confirmation on whether a termination fee will apply.

Firedog
Super User
FiredogSuper UserAuthor
Super User
May 15, 2024

 

The above offer is definitely more favorable than my current plan, particularly regarding the standing charge. I did not proceed further from this point because there is no confirmation on whether a termination fee will apply.
 

That’s an odd page to be seeing if you’re simply aiming to switch. I’d beware of following that route, because you may find yourself opening an unwanted new account and closing your existing one. BTDT.

The new OVO app (‘new’ as in released within the past week) seems to do this sort of stuff more smoothly; do you have the opportunity of using that instead of a computer?
  

Download our iOS AppDownload our Android App

  
Otherwise, can you access the offer you want via ovoenergy.com, using the first Get a quote button? The ‘plan summary’ I saw before going ahead was pretty unequivocal about the exit fee:
  

 

 

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. |
Rank 2
May 15, 2024

I tried the 'new' OVO app without success. Using the first "Get a Quote" button on ovoenergy.com led me to the same page as before.

Firedog
Super User
FiredogSuper UserAuthor
Super User
May 15, 2024

Oh dear. 

Of course, we may be talking at cross-purposes. You are probably concerned about being charged an exit fee now if you switch to a different plan, e.g. the new 1-year Fixed Loyalty 09/05/2024. This will only be apparent from your current plan - what does that say? You may even have to dig around to find the email you got confirming the switch to your current plan, because it should both state what the exit fee would be and include a link to any T&Cs applying specifically.

When I switched last year, my confirmation email included this link, which is to the terms we’ve been dissecting. They look pretty unambiguous to me, although they do include the elastic “we may apply a termination fee.”

I’m afraid you’re going to have to ask Support and hope you get through to a clued-up agent. I’d use webchat to be sure of getting any response in writing.

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. |
Rank 2
May 15, 2024

My confirmation email link to this:

It's stated that I wouldn't incur a termination fee if I switch to another OVO fixed tariff. However, it's clear that OVO wouldn't provide a link to switch to another fixed tariff unless my contract is nearing its end. In other words, the condition "if you change to another OVO fixed tariff" can never be fulfilled in the middle of the contract. It seems like a sort of gimmick because it's unlikely to ever be triggered.

Blastoise186
Super User
Super User
May 15, 2024

You can change tariff mid-term by talking to the Support Team. It’s possible to do - they just need to be sure, to prevent accidents.

Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
Firedog
Super User
FiredogSuper UserAuthor
Super User
May 15, 2024

It's stated that I wouldn't incur a termination fee if I switch to another OVO fixed tariff. 

 

OK, thanks. I’m intrigued, because mine - back in December - didn’t look like that. I thought this was a recent change, but your evidence suggests otherwise. When is that email dated?

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. |