Question

Price Cap vs Fixed Price Tariff

  • 21 September 2022
  • 3 replies
  • 73 views

We signed a dual fuel fixed price deal in June (having had several with OVO before).

It seemed a sensible thing to do.

But, Now HMG has capped the price cap from October, we would save a couple of hundred quid over two years if we terminated the fixed price deal, paying the £60.00 to do so.

This assumes HMG won’t force the price cap to be applied to energy supplied under fixed price deals.

Has anyone ant thoughts?  Is HMG going to apply the price cap to fised price deals (meaning terminating the deal would actually cost us money)?  Have OVO said anything about this (sorry OVO but your search engine doesn’t allow me to actually research this on your site).


3 replies

Userlevel 7
Badge +1

Hi @Chris Millar

The government website has a pretty good explanation of how the Energy Price Guarantee works for fixed rate tariff, basically a discount subject to a floor. 

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

See if that makes sense and feel free to come back with any questions. 

If you are one of the few where the discount isn't sufficient, OVO are not charging the £60 exit fee

So either way you should be fine until Oct 2023

 

Thank you.  I really appreciate your response.

I’d managed not to find that explanation.

Userlevel 4

Hey @Chris Millar,

 

Welcome to the OVO Online Community.

 

This is a great question and we’re seeing a lot of our customers with similar questions. For all the up to date advice, see this page dedicated to the Energy Price Guarantee. We’ll keep that page updated with any changes as and when.

 

If you pay by Direct Debit, we’d recommend you leave this unchanged until any price changes have been made in October. That way you know you’re paying the right amount. 

 

If you don’t have a smart meter that sends us your readings remotely every day, we’d recommend you submit a manual meter reading this week or next via your online account.  

 

We’ve also got a page with FAQs dedicated to the Energy Bills Support Scheme.

And OVO’s Customer Support Package: everything you need to know

 

Hope this helps. 

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