Can we assume that as per April, any variable rate quoted now in July (at relatively modest levels) will inevitably rise when the price cap is removed in Sept, potentially towards the current 1 and 2 year fixed prices quotes?????

@Graham Duxbury 

I think that isn't an unreasonable assumption. 

The main caveat is that wholesale gas prices are very volatile and we don't know what interventions ofgem and the next Prime minister may make. 

Conwall Insight are very well respected in estimating the future price cap. They have been reliable in the past and are used by Martin Lewis of Money Saving Expert.

https://www.cornwall-insight.com/press/default-tariff-cap-forecast-climbs-further-as-ofgem-announcement-looms/

The price cap changes in October but is announced in August. There is due to be another price cap in January as we move to quarterly updates assuming nothing changes. Hence most of the changes to the October price cap are already "baked in" 

So lets take the January estimate of £3363

This is for the ofgem typical consumption values of 12000 units of gas and 2900 units of electricity. 

OVO one year current offer for my postcode for same ofgem typical usage would be  £3,366.84. So basically in line with the cornwall insight estimate. OVO quote  based on (inc vat). 

Gas standing charge 0.2752
Gas unit cost 0.1429

Electric standing charge 0.4444
Electric unit cost 0.4791

We use a bit less than the ofgem typical usage.

For me the two year OVO quotes are much more expensive than that. 

The fixed quotes give a lot of piece of mind. 

Are you going for a fixed plan or the ofgem price cap plan? 

I’m on a 2-year fixed plan coming to an end in December 2022. I was lucky in missing an increase in April. I am worried by about how much my direct debit will increase when my plan ends.

Unfortunately it’s bad timing as we are likely due a big hike to the price cap in October. The predictions are getting scarier almost daily.

whilst nobody knows exactly do yourself a favour and check the Martin Lewis website for what seems sound information.

It looks as though there will be a substantial increase in October, let’s hope Martin will put some pressure on the energy companies and the government. All I can see is that any funds added to your electricity account will be grabbed by the utility companies and increase their profits. Largest oil and

 gas producers made close to $100bn in first quarter of 2022, Shell made $9.1bn in profit, almost three times what it made in the same period last year, while Exxon raked in $8.8bn.

I wonder how long these energy companies can continue to fleece the population.

Smart meters in most homes so no ‘meter men’ to pay for. We must be paying double what we were paying when the industry was in public hands and  when there were no shareholders and overpaid executives to suck funds out of the industry.

Hi @James Greenan 

Wow there are a lot of thought tangents in your post! 

Just to deal with one element, there are still meter men (and women) and they will still visit from time to time even if you have smart meters (it's helpful to check on the safety of the setup if nothing else). 

I'm wondering if the OVO forum can set up a 'Rhetorical Question' category, as I'm not sure you will get a complete answer regarding the energy companies. Are you mainly referring to energy producers or energy suppliers?

The whole world is being affected - stop thinking its a UK only problem. Much (but not all) of the blame rests with President Putin and his ill advised invasion of Ukraine , which I’m sure he now regrets bitterly.  But we are where we are.

If you think we’re being fleeced why not find like minded people to back you in a rival energy supplier start up?  Recent history suggests that companies have been making losses under the successive price caps, despite rising prices and many have gone bust.  That’s because the prices in the markets looking forward are higher than allowed for in the price caps which look backwards.

None of like the increased prices, the rise in October is substantial and another big rise in January is predicted.  But Its up to you to limit your costs by buying as little as possible - it will involve extreme cutbacks.

Ofgem say that standard variable green energy tariffs are exempted from the cap.  I’m on Ovo’s rolling variable plan - does anyone know if that’s exempt from the cap?

Hi @Sofie ,

The Ofgem Default Tariff Cap aka the existing price cap that everyone knows about (which I’ll refer to as the legacy price cap from now on) will cease to exist on the 1st October 2022 if I understand things correctly. It will be replaced by the Energy Price Guarantee which will (according to reports) apply to every tariff.

In the meantime, so called green tariffs are exempt from the legacy price cap due to costs. OVO’s SVR tariff Simpler Energy doesn’t seem to be classed as one, therefore comes under the cap.

Thank you @Blastoise186 - Thats very helpful. 

Hi, 

As per question above, I was hoping someone could let me know if simpler energy electricity charges will drop as the Energy Price Cap (EPC) is due to drop in July??

Also does anyone know if there will be more tarriffs available in July with the EPC dropping?? 

Thanks in advance for your help 

Hey @Caino78 ,

Good news. The short answer is yes it will drop.

As for Fixed Rate Tariffs, I’d say there’s a good chance they’re coming back soon!

Yey, @Blastoise186 

That has made my day. I'm on the Simple Standard variable (Economy 7 tariff). 

Thanks so much for letting me know 

Hi-de-ho

When will Paygo prices be published for 1-4-24 ?

There are generic ‘cap’ prices dotted around on the web,  but can vary by region and supplier.
 

‘Scary’ how much Standing Charge makes up the bill especially gas. 

The official regional price-cap rates are here: Get energy price cap standing charges and unit rates by region | Ofgem

Thanks.

Gets complicated cap Average vs Regional average  vs Supplier actual.

Rarely get the overall savings % 

Because prices are in general falling, OVO might not publish them before they take effect. The Renew your plan page will usually start showing next quarter’s prices a couple of weeks before the new ones take effect.

You can’t really say anything about how much effect standing charges have on the bill in general , because it depends on how much energy you use. If you use a lot, the standing charge may only be a small proportion. If you don’t use much, like me, it’s a major part of the bill.

Hi All, Can someone show me which Ofgem price caps apply to my account and where exactly I can see these. ? My plan name is : simpler energy-economy 7.

Grateful for any assistance ! thanks in advance.

Hi @Robert Beisley ,

OVO’s pricing for that will match the current Ofgem Price Cap for your area. Please do NOT rely on the one posted directly to the Ofgem website - that’s the National Average and probably isn’t your actual cap!

The price capped rates for each region are given on this page:  Get energy price cap standing charges and unit rates by region | Ofgem. You’ll be looking for the multi-rate figures. If you’re not sure which region you’re in, see  this map. The regions broadly match the old Electricity Board areas.

Ofgem doesn’t dictate how Economy 7 tariffs are to be split between peak and offpeak; it’s up to the supplier to decide, so long as the average household’s costs are kept within the overall price cap. They do dictate for prepayment customers, though, that the split should be such that it’s cheaper to be on E7 if the offpeak usage is at least 42% of the total. You may find that OVO are more generous. 

Thank you Firedog & Blastoise,

Yes using these Ofgem rates : Electricity S/C & unit rates paid by direct debit, multi rate ,gives unit rate of 28.12 per KWH. My region is Eastern.

However combining my off-peak & peak usage for Jan/Feb/March 2024 gives an average that is in excess of this 28.12 each month. On the face of it I’ve been overcharged.

Who should I contact do you think ?

thanks again, Robert.

The price cap isn’t based on your own averages - but the averages of the average user.

You may not have been overcharged. I personally consider it unlikely tbh

Perhaps I haven’t explained myself very well. 

I don’t want to show my detailed excel workings but my Elec multi rate usage for J/F/M 2024 means I have paid for these 3 months at 28.99/ 29.15/ 29.62 . The eastern cap is 28.12.

The obviously excludes daily standing charge.

If 28.12 is the correct cap ( eastern region) then I’ve been overcharged.

Have I missed something ?    Maybe …….  but I can’t see it. Ideas welcome !

That’s not the way it works, I’m afraid. Ofgem set the cap for the ‘average’ household, then suppliers set peak/offpeak rates that would keep bills within the cap for an ‘average’ household. Of course, no household is average, so everyone’s bills are different.

If you’re paying more for your electricity on E7 than you would on a single rate tariff, you should consider whether E7 is right for you. It’s seasonal, of course, but if you’re paying over the odds in half of the winter months (assuming there’s some electric heating involved), you might have a look at the note I wrote on just this topic: A discussion: To stay on Economy 7 or not | The OVO Forum (ovoenergy.com)