Price cap increases- To fix or not to fix?

Other companies are already sharing the new standing charges and energy costs while OVO are encouraging us to fix. Without all the facts how can we fairly decide?

That’s the point with fixing or not fixing.

You don’t, you can’t, have the facts about what will happen with prices in the future, so to fix or not fix is a gamble that you take on what will happen with prices.

And even if you never look at the fixing options and always stay with variable rates that’s still a gamble, just one that you are taking without thinking about it.
You are already in the game, you might as well consider how you want to play it.

Sometimes fixing is not even about saving money, but about knowing how much you will be paying for the next year (or 2, or however long you fix for).
I have fixed, I know how much electricity and gas I use each year, so I know how much that will cost me each month for the next 12 months.
For some people that is important to know, even if it is more than they might have paid on variable rate.

I fixed in December for 12 months, at the moment with the changes coming in April that looks like it might have been the wrong time for me to fix. (If i did it to try and save money).
Or it might not have been, that will depend on what further changes are made to unit prices and (particularly for me as a low user) the standing charges in summer and autumn.
I won’t know for sure if I made the right money saving decision (gamble) for me until next December. (Well actually I’ll be able to work it out once I know what the autumn rates will be).
And then I’ll have to make another gamble between fixing again or not.

Hey @Sally123,

Welcome to the OVO Online Community, 

Price Increase Notification letters will be sent out from the 4th March and so by 18th, customers on the Simpler Variable Tariff should have a notification of the new prices from OVO. 

I thought SVT prices were decreasing on 1 April 🤷🏼

Spot on @Firedog, Prices are decreasing so we won’t be sending any Price Increase Notification letters this time.🙂

The Standard Variable tariff prices will be update online, you can get a quote here: https://plans.ovoenergy.com/.

Thanks, Abby 😊

Thanks @Firedog 😅

Hi, 

can I get your opinions please. What is the best rate to be on now the rates have gone down.  I don’t really understand it all. I’m o variable at the minute. Thank you 

You will get a variety of opinions on the forum

For piece of mind fixing now will lock you into lower rates than your current variable rate. That is because wholesale prices have fallen so energy suppliers can buy energy in advance cheaply at the moment.

Your variable rate is forecast to be lower than it is now if you decide not to switch

https://www.cornwall-insight.com/press/wholesale-price-hikes-and-ofgem-updates-raise-price-cap-forecast/

But nothing is guaranteed obviously.

It is worth shopping around if you decide to fix as you may find better offers elsewhere than OVO.

If you want to stay on a variable tariff then there is an Eon tariff that guarantees to track lower than the price cap for 12 month with no exit fees.

Overall I would say now isn't a bad time to think about fixing. There is nothing to suggest another big fall in wholesale prices.

In my case, OVO is offering a 1 or 2-year Fixed Loyalty plan, which has higher unit rates and standing charges. Unless you anticipate energy prices increasing in the future, there is no incentive to switch, or you can simply consider switching elsewhere for those offering a better deal.

Iinteresting as ovo are offering me lower fixed unit rates.

Are you able to post the comparison from the ovo  renewal page?

That's incredible. The fixed daily  charges for my account are ludicrously high. It reduces the incentive to save. My variable daily rate is 66.55p electric and 30.07p gas. North East England. 

Sometimes l don’t understand how it works but mine was coming to an end. my one starts next week and l think mine is a standard one . It’s is a cheaper one as it all has come down.

EverythingNeedsAUserName wrote:

That's incredible. The fixed daily  charges for my account are ludicrously high. It reduces the incentive to save. My variable daily rate is 66.55p electric and 30.07p gas. North East England. 

 

Unfortunately the regional pricing of electricity means some areas of the country pay more.

This difference in pricing is potentially going to increase as the industry moves to zonal and nodal prices, where prices may vary by local substation. Be interesting to watch how that feeds into consumer tariff.

In my opinion these saving schemes offered are a gamble, implementing changes as shown below puts you in control of what your energy costs you. I run a 2 bed semi detatched house and my combined consumption throughout this winter, including standing charges and vat is under £100 per month so it can be done.

The only way you can realistically save is to drastically cut down on your consumtion. Not so easy to do if you have a family. I am retired now and live on my own and have done the following:

Throughout the winter indoors, I wear my oodie that keeps me toastie warm

I use a 650w halogen heater instead of putting on the central heating.

I have an electric blanket 200w instead of heating up my bedroom

I strip wash daily and have a long soak in the bath once a week

When I cook, I cook for 8 and freeze 6 (One goes in the fridge and one eaten on the day)

Use the washing machine on cool and full loads only

Dry washing outside even through the winter (I have a canopy that protects the washing from the rain)

Switch over to low energy bulbs and don’t leave lights on.

Doing all of the above I am now using one third of the energy that I used to use, even though the prices have climbed I am actually spending less on energy than before the price hike.

Once you get into the routine it’s not so bad and personally I would rather spend less on energy whilst also helping the environment and have more money to spend on myself.

I hope this helps.

House sharing through the winter.

When my kids were young and later when they went to school my best friend and I would house share in the winter to save money.

I would do my housework and then go to her house for the day, the next day she would come to mine. This way we had company for ourselves and our kids and we were only heating one house each day between us. It was fun. 

Not really - because you are not comparing the same things at all.

Juffus showed the basic 'Simpler Energy' and the '1 year fixed loyalty'.

You showed '2 year fixed + heating control - Economy 7' and '1 year fixed loyalty - Economy 7'.

The Heating Control tariff includes extra - A Tado Wireless Smart Thermostat kit, paid for over the 2 years (The cost is added to the Gas Standing Charge).
https://www.ovoenergy.com/2-year-fixed-heating-control-terms
Both of yours are Economy 7, do you currently have economy 7?

Those are really helpful and innovative tips @mozzie55, I never thought of the house sharing idea! 😊

@Jeffus Are you looking at the wrong tariff information? Your current tariff should be look up from below:

samsonluk wrote:

@Jeffus Are you looking at the wrong tariff information? Your current tariff should be look up from below:

 

Good question @samsonluk 

The plan page you have posted is excluding VAT.

All the figures on the renewal page include VAT

So an easy way of comparing rates on  variable and fixed tarrif is to look on the renewal page. Then everything will include VAT.

Also:

The IHD figures also include VAT and standing charges.

The figures on the usage page don't include VAT or standing charges

Rates are regional so other posters may well see rates higher or lower than those posted

Whether to stay on the cap or go fixed is a difficult decision because there is no clear distinction between the two at the moment and this is unlikely to change for the foreseeable future. It's worth reading the advice from Martin Lewis which is based on sound principles.

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/

Just to add to your confusion, there was a lengthy discussion here on the question of to fix or not to fix just before the January 2024 price hike. Have a look at it - you may find it interesting.

• Price cap increases- To fix or not to fix?

The 1 year loyalty tariff is worth considering as there are no exit fees if you switch to another ovo fixed tarrif in the future.

Currently slightly less than the variable tariff.

Compare with Cornwall’s latest insight:
  

These are average GB figures, so they won’t match your own. It’s the predicted change from quarter to quarter that’s interesting

Hey @Crisse2004,

Some really fantastic, helpful advice from our community members here. If you can, please pop back and let us know what you decide 🙂