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Firedog
Super User
FiredogSuper User
Super User
December 15, 2023
Solved

Price cap increases- To fix or not to fix?

  • December 15, 2023
  • 88 replies
  • 6153 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 28/09/26 by Abby_OVO

     

    The Energy Price Cap, set by Ofgem, is normally changed on 01 January, April, July and October 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

    88 replies

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    Abby_OVO
    Community Manager
    Abby_OVO
    Community Manager
    August 26, 2026

    Hey ​@Belinda5 

     

    I’m glad to see Blastoise186 had already stopped by with some helpful advice here.

     

    Tariff prices aren’t something that can be changed, these are set when a tariff is released and only changed for things like Price Cap to keep them in line if need be such as the variable plan. You can check all our plans here, or get a quote for any applicable tariffs for you here.

     

    It can be tricky to decide what tariff is best for you, and if there’s something elsewhere that’d work better for your lifestyle we always understand you may want to switch away. We’d be sad to see you leave us but what works best for you always matters.

    Currently Playing: She's Electric
      Rank 4
      Belinda5
      Rank 4
      August 26, 2026

      Thank you ​@Blastoise186 ​@Abby_OVO for the replies.

      Sadly we will be parting ways, subject to acceptance, as today (after the price cap announcement) I can get a 2yr fixed with both electricity and gas kwh unit prices and both standing charges lower than Ovo's.

      We've had a good run with Ovo and have always had excellent customer service, including with the bereavement team last year to close my sisters account. On a customer service basis alone I will always recommend Ovo. Here's hoping I get the same good customer service with the company we are switching to.

      Thanks Ovo.

        Newcomer
        Wullie.
        Newcomer
        September 1, 2026

        Similar issue here, currently paying £168 a month as I have been for 2 years, I'm £481 in credit, not including a payment that will be processed today. Even allowing a bit of room that's roughly £600.

         

        New fixed Tarrif offer of £225, simpler energy saying roughly £195, but my estimate reckons i need to be paying £223.

         

        Tried calling a few weeks back but the operator wasn't understanding my query. I know the price cap is changing but not by that much.

         

        How about you leave it at £168 and revist it in 3-6 months?

        Nukecad
        Super User
        NukecadSuper User
        Super User
        September 1, 2026

        If you have been on a fixed tariff for two years then you will find that in those two years prices have gone up quite a bit.

        It’s not just the latest change in the cap you have to look at, there’s been 8 of them over the 2-years while you were fixed.

        I will say that the DD calculator recommendations appear to be too high at the moment for some reason.
        Mine is saying a minimum £134 when by my own calculation it should be £115. it appears to be using the Ofgem typical use for a house as the FAC rather than my actual usage figures for my 1-bed flat.

        I will also say that the current new fixes being offered do seem high, my fix ended last week and for now at least I’ve go to variable tariff rather than fixing again.

        I said, Hey - Watts going on.
          Firedog
          Super User
          FiredogSuper UserAuthor
          Super User
          September 1, 2026

          ​@Nukecad I will say that the DD calculator recommendations appear to be too high at the moment 

          Yes, but I think ​@Wullie. is referring to the estimates showing on the Renewals page. The tariff information label (TIL) gives both the rates and the quantities it works from to produce an estimate for the yearly and monthly costs. When he mentions ‘my estimate’, this may or may not be the recommended Direct Debit - let’s ask, shall we?

           

          Simpler energy prices change with the Ofgem price cap, which is based on lots of factors. The main one is the change in wholesale prices over the past few months. Fixed rate plans on the other hand are based on forecasts of where wholesale prices might go during the term of the fix, so they take no notice of changes in the price cap. 

          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 12
          Bendog
          Rank 12
          September 2, 2026

          I have noticed that one company is offering a “fixed tariff” that it says will go down if rates go down, but not up if they go up!!

            Newcomer
            Unknownuser1
            Newcomer
            September 3, 2026

             

            Same here.  I’ve switched.  The process was really easy and it was done within a week because I have a Smart Meter. The new supplier handled everything including informing OVO that I was switching.
            Not only do I get cheaper electricity, I also get free electricity periods during off-peak hours.
            Also, it wasn’t until I switched that OVO realised they were over-charging me and gave me a refund.  How long would that have gone on if I hadn’t switched?
            Win-win-win for me.

            Rank 12
            Bendog
            Rank 12
            September 3, 2026

            How were you paying for your energy with OVO? How were they over-charging you? I pay for my energy via a £100 per month Direct Debit. At the moment, I have a credit balance of £338.99. This actually represents my account at “close of play” yesterday (2/09/26) as, having smart meters, my account is updated daily. (My most recent payment was on September 28th) I choose to keep a credit balance that is, in the opinion of many, quite high for two reasons. First of all, I have a glass fusing kiln powered by electricity. A typical firing cycle can take around 12 hours. Secondly, we like to be able to choose to be warm in winter without having to worry about the cost as we have a fixed income (aged 71 and 75). If I chose to leave OVO, they would, of course, have to repay me my credit balance. It would not represent their having over-charged me. 

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              OVO (S) Gas Limited is registered in England and Wales (Company No. 02716495) at Floor 5, Crescent, Temple Back, Redcliffe, BS1 6EZ.

              OVO (S) Gas Limited is part of OVO Group Ltd