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.
@Firedog the variation across the country is amazing. For me a fixed deal gives a penny less on peak rate which we rarely use (solar and batteries), 0.3p cheaper overnight, and 4.4p more per day which more than offsets the savings. For gas it's 0.3p per unit and 2.7p per day CHEAPER than variable. Where is the sense in making gas cheaper when the world needs us to get off it.
Am I correct that OVO is already offering this? There are no exit fees if you switch to another upcoming OVO fixed tariff, right?
Found this in the help section
If you're on a fixed plan
You must be in your ‘renewal window’ (which starts 53 days before the end of your contract) to change, or you may incur exit fees. Once renewed, the new plan will start when your current one ends.
Change from fixed to fixed:
Change from Better Energy to 2 Year Fixed Energy anytime – no exit fees.
Change from 2 Year Fixed Energy to Better Energy – £30 exit fee on each fuel if you change before the renewal window.
Change from fixed to variable:
Change from Better Energy to Simpler Energy – £30 exit fee on each fuel if you change before the renewal window.
Change from 2 Year Fixed to Simpler Energy – £30 exit fee on each fuel if you change before the renewal window.
So only if you are on certain tariffs.
Am I correct that OVO is already offering this? There are no exit fees if you switch to another upcoming OVO fixed tariff, right?
I'm currently on a "1 Year Fixed Loyalty" started on 21 Dec 2023. (I believe that I've also seen it referred to as '1 Year Fixed Loyalty 14/12/2023'?)
Having the same name plan with different dates and different rates does raise interesting questions.
Can you switch/renew to a newer "1 Year Fixed Loyalty" plan part way through your existing "1 Year Fixed Loyalty" plan? ie. Effectively extending your end date at the new tariff rates.
Firstly the question of exit fees: The 1 Year Fixed Loyalty Terms & Conditions (from the same quote), #6 says that no exit fee would apply if you “change to another OVO fixed tariff”:
The one question that I have there is would switching from one ‘Fixed Loyalty’ plan to a later version of the same named plan still count as "another OVO fixed tariff"? I believe that it would because although having the same ‘basic’ name the tariffs are indeed different and the plans have different dates in their ‘full’ names when you include the date*
So if it works out cheaper for you and you decide to do it then how would you go about that as they both have the same plan name? It looks to be as simple as getting the online quote and then simply clicking the "Choose plan" button on the quote.
*That button was shown to me, suggesting that I can indeed switch/renew at the new rates.
I haven't done that yet as I still want to do some number crunching, if I am going to do it then I'll probably do it on the same day as my current billing period ends - Or should that be the day after when the new billing period starts?
Found this in the help section
Change from 2 Year Fixed Energy to Better Energy – £30 exit fee on each fuel if you change before the renewal window.
It’s currently £75 per fuel for the one-year fixed rates and £95 for two-year fixed rates that I can see.
The principle still applies as far as I’m aware, though: simply put, unless you’re within 7 weeks of the end of the contract, any plan downgrade (e.g. 2-year fixed > 1-year fixed, fixed > variable) triggers an exit fee, but upgrades don’t.
The principle still applies as far as I’m aware, though: simply put, unless you’re within 7 weeks of the end of the contract, any plan downgrade (e.g. 2-year fixed > 1-year fixed, fixed > variable) triggers an exit fee, but upgrades don’t.
Which still leaves the question about changing mid-term from a 1 Year Fixed to a newer 1 Year Fixed?
Although the current Fixed Loyalty T&Cs that I screenshotted above do suggest that no exit fee applies as long as you are already on a Fixed Loyalty plan and are ‘renewing’ to any other OVO fixed plan is that correct, and is it also correct for all current fixed plans?
@ChristopherS_OVO any chance that you could get that clarified as well? The current guidance seems vague - and contradictory in places.
The one question that I have there is would switching from one ‘Fixed Loyalty’ plan to a later version of the same named plan still count as "another OVO fixed tariff"?
My guess would be ‘No’. If this were possible without invoking an exit fee, there would be no point in calling it ‘fixed’ and there would be no gamble involved. OVO have ostensibly already bought the fuel you intended to use when you fixed at the forward price prevailing then. I don’t suppose they can sell it back at the same price, which has presumably fallen in the interim. The exit fee is to indemnify them against that potential loss.
Your sums might show that fixing again at the new lower rate could save you more than the amount of the exit fee. Then again, they might not.
Yes. I had already considered those points and they are of course valid.
Always remembering that you are extending your fixed term too, and they are now ostensibly buying fuel at a forward price for that extended term and setting new fixed tariffs accordingly.. And for that new term anyone new fixing now would be using exactly the same fuel as you, coming from the same sources at the same cost. (It’s not as if it’s already been supplied to OVO and is sat in a big pile somewhere).
However there does not (Currently) seem to be anything in the published T&C’s to prevent you from doing it.
That may be why it’s difficult to find it stated clearly anywhere one way or the other, the hope/expectation that people won’t notice the ‘loophole’ and so will just stick with their current full term?
In effect it may be a small gamble on OVOs part that fixers won’t notice that they might still fix again early, as long as they stay with OVO - a small part of the bigger ‘game’.
Personally I see the exit fees more as a disincentive to jumping ship to a different supplier offering a slightly lower fixed rate.
Thanks for flagging this, we’ve raised this now to be updated.
Thanks again for flagging this.
I have been looking some more into this early Plan switching and Exit Fees question.
Two days ago I posted this:
However - I’ve checked the email that I got when fixing to my 1-year Fixed Loyalty tariff back in December. I clicked the link in that email to the T&Cs and was taken to a version with this:
Even though they are both headed as “1 Year Fixed Loyalty Terms” you can see that they are clearly different.
The earlier version (the one that I signed up to) does not allow switching to another OVO fixed tariff plan without the Exit Fee(s) becoming payable. The newer version clearly does allow it, and has had an extra line added to say so. (The wording “your supplier or plan” has also been altered accordingly.
The moral being to always check exactly what the terms that you signed up to are. Generally you are bound by the terms & conditions in force when you sign.
(Whether in this case OVO would strictly enforce that or not is another question. I suspect that they would otherwise why leave the older version in place?)
Am I correct that OVO is already offering this? There are no exit fees if you switch to another upcoming OVO fixed tariff, right?
My original email link to v2 as shown below and that's why I expect they are offering without exit fees.
The principle still applies as far as I’m aware, though: simply put, unless you’re within 7 weeks of the end of the contract, any plan downgrade (e.g. 2-year fixed > 1-year fixed, fixed > variable) triggers an exit fee, but upgrades don’t.
Which still leaves the question about changing mid-term from a 1 Year Fixed to a newer 1 Year Fixed?
Although the current Fixed Loyalty T&Cs that I screenshotted above do suggest that no exit fee applies as long as you are already on a Fixed Loyalty plan and are ‘renewing’ to any other OVO fixed plan is that correct, and is it also correct for all current fixed plans?
@ChristopherS_OVO any chance that you could get that clarified as well? The current guidance seems vague - and contradictory in places.
Hey @Nukecad,
“Tariff hopping” all depends on the tariff that you are on and the one you’re moving to, as both will have slightly different terms and conditions. For example, in the screenshots you sent us, the fees are £75 per fuel, but this would be mainly for those on fixed tariffs who are thinking of switching suppliers. If you’re currently on a one-year fixed and move to another one-year fixed, the fee could be £30 per fuel or £0 depending on factors such as the length left in the contract, etc. Our Support Team has a tool to determine whether exit fees apply.
@Abby_OVO has submitted the request to get the “Changing to another OVO plan” page updated with more up-to-date plan examples which will help making things easier to read.
(Whether in this case OVO would strictly enforce that or not is another question. I suspect that they would otherwise why leave the older version in place?)
You’re right that, in some instances, we wouldn’t enforce exit fees. I’d like to think common sense would prevail in these scenarios. We’ve all fallen victim to the “available to new customers only” marketing tactic, so why wouldn’t we try to help out loyal customers?
I hope this helps
Am I correct that OVO is already offering this? There are no exit fees if you switch to another upcoming OVO fixed tariff, right?
My original email link to v2 as shown below and that's why I expect they are offering without exit fees.
Yep
Still offering zero exit fees for me on a switch to another loyalty tariff
It has been there for ages for me.
Am already on a fixed loyalty tariff with no exit fees if switch to a new fixed tarrif with ovo.
It is a shame the plan page my ovo account only contains a cut down version of the exit fees and doesn't detail it. I would say that is a bug personally. It would be better if the plan page linked to the actual terms and conditions for the specific plan.
The principle still applies as far as I’m aware, though: simply put, unless you’re within 7 weeks of the end of the contract, any plan downgrade (e.g. 2-year fixed > 1-year fixed, fixed > variable) triggers an exit fee, but upgrades don’t.
Which still leaves the question about changing mid-term from a 1 Year Fixed to a newer 1 Year Fixed?
Although the current Fixed Loyalty T&Cs that I screenshotted above do suggest that no exit fee applies as long as you are already on a Fixed Loyalty plan and are ‘renewing’ to any other OVO fixed plan is that correct, and is it also correct for all current fixed plans?
@ChristopherS_OVO any chance that you could get that clarified as well? The current guidance seems vague - and contradictory in places.
Hey @Nukecad,
“Tariff hopping” all depends on the tariff that you are on and the one you’re moving to, as both will have slightly different terms and conditions. For example, in the screenshots you sent us, the fees are £75 per fuel, but this would be mainly for those on fixed tariffs who are thinking of switching suppliers. If you’re currently on a one-year fixed and move to another one-year fixed, the fee could be £30 per fuel or £0 depending on factors such as the length left in the contract, etc. Our Support Team has a tool to determine whether exit fees apply.
@Abby_OVO has submitted the request to get the “Changing to another OVO plan” page updated with more up-to-date plan examples which will help making things easier to read.
(Whether in this case OVO would strictly enforce that or not is another question. I suspect that they would otherwise why leave the older version in place?)
You’re right that, in some instances, we wouldn’t enforce exit fees. I’d like to think common sense would prevail in these scenarios. We’ve all fallen victim to the “available to new customers only” marketing tactic, so why wouldn’t we try to help out loyal customers?
I hope this helps
Not really. Am not trying to be awkward
It would be better if the plan page clearly stated the exit fees.
Else customers don't know what they don't know.
Expecting them to contact customer services.…
Blimey I thought we were trying to make things more self service
I would call this a bug personally
Thanks for that clarification @ChristopherS_OVO , it is helpful for me.
I do like the distinction between "Tariff Hopping" within OVO and "Switching" to another supplier, using those makes it clearer to understand which is being talked about.
I had noticed that the T&C's say "we may apply" which is not the same as "we shall apply", and so leaves OVO some discretion on whether to charge an Early Exit Fee or not.
So if the 'Early Exit Fee tool' is only available to Support then a customer considering 'tariff hopping' would have to ring support to check what fee might apply and then decide if it is a move that they want to make? (Other than actually 'hopping' and seeing what happens of course).
PS. I personally don't regard 'tariff hopping' as falling into the same category as “available to new customers only” - because you are not starting from the same place as a new customer - in a tariff hop you had already signed for a fixed tariff that was supposed to be for a set term.
It looks like this is all a bit new, so perhaps the change from Exit fee:to Exit fee if you change supplier: for new 1-year fixed rate plans hasn’t quite percolated to all corners of the site. I can imagine that it doesn’t apply to 2-year fixes.
Meanwhile, I’m happy so far with my new 1-year fix, especially since the standing charge is so much lower (£190 instead of £205). I just hope Ofgem don’t get round to reforming it before May 2025 …
Oops! I seem to have a bigger issue just at the moment.
I just logged into my account to get my usage figures from yesterday for my Power Move calculations, only to be greeted by this:
Whilst I had been looking at the quotes page I didn’t click the button to sign up for a new tariff, at least I’m 99.99% sure that I didn’t. I certainly didn’t submit any meter readings like it is saying there, and I’m already on supply, not 3 days from now.
It’s interesting that it does say it’s a switch and not a tariff change, it’s also interesting that those dates are in the future. The last line there suggests that they are treating this as a new supply to a property that they are not already supplying.
I guess that I need to ring support and find out what is going on.
I’d give support a call, just to make sure this isn’t an erroneous transfer.
Keep us posted!
@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 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?
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 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.
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?
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:
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.
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.
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