Solved

What is the current price capped tariff for two rate economy 7?


what is the current capped tariff for economy 7

icon

Best answer by Blastoise186 25 July 2022, 10:20

View original

29 replies

Userlevel 7
Badge +1

I’m afraid we can’t tell you that @Mogwa . Your best bet is to contact the Support Team as they’ll be able to check the prices for your area.

Thanks I'll certainly do that as they've used the fact that I'm a new customer to up the price !!

Userlevel 7
Badge +1

Updated on 14/12/23 by Tim_OVO:

Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. You can see the latest information regarding the price cap levels and date changes on the Ofgem site here.

 

The way energy suppliers set prices is impacted by:

 

The price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.

 

The Energy Price Guarantee – provided by the government to help households with energy costs during the energy crisis. It’s a discount on gas and electricity prices and is in addition to the price cap. It applies to both variable and fixed rate plans. If the Energy Price Guarantee (EPG) is above the level of the price cap, it won’t impact prices for anyone who pays monthly. 

 

What this means if you pay monthly for your energy

 

If you're on a variable rate plan, your unit rate and standing charge will change on 1st January, April, July and October, in line with the new price cap. We’ll write to you to let you know if this impacts you personally. Your actual bills will still depend on how much energy your home uses.

 

If you're on a fixed rate plan, the price cap doesn't affect prices for fixed-rate plans. We're keeping your prices as they are for the length of your contract to protect you from any price increases.

 

What this means if you Pay As You Go for your energy

 

All Pay As You Go prices are variable – these will change with the new price cap on 1st January, April, July and October.

 

Now's the time to send a meter reading

 

This will make sure your energy account is up to date. You can submit a meter reading now on your online account or through our app. If you’ve got a smart meter, you don’t need to send a reading. The smart meter will send this for you.

 

Priority Services Register

 

Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition via our Priority Services Register.

 

Support available for customers who may be struggling with their bills

 

Here’s how you can apply for our Customer support package

Here’s our guide on debt and energy assistance.

 

Citizens Advice: Visit your local branch, or their websites: for England and Wales and for Scotland. You can speak to an adviser online, in person, or over the phone: 0800 144 8848 (England), 0800 702 2020 (Wales), and 0800 028 1456 (Scotland). 

 

National Debtline: Call 0808 808 4000 or visit their website.

 

Step Change Debt Charity: Call 0800 138 1111 or visit their website.

 

Have any questions about the price cap? See our Price Cap FAQs here.

 

This is not an answer to my question.

The support team show no concern or interest in helping to get correct tariff.

I have bee offered 3 different tariffs for the same simple energy variable scheme.

Userlevel 7
Badge +3

Hi @Biggles this thread is from July - when Boris was still PM and before the EPG was devised !! Even the update of 28th August is out of date. 
** update ** now updated as of 9th nov 2023

Thank you but it does not answer my question.

Why have OVO offered me 3 differnt tariffs in the last week all exceeding the OfGen Tariff cap of 34p per kWh and 45p per day.

Userlevel 7
Badge +2

Thank you but it does not answer my question.

Why have OVO offered me 3 differnt tariffs in the last week all exceeding the OfGen Tariff cap of 34p per kWh and 45p per day.

Hi

Given no one on this forum has access to your account we will have no way of answering that question.

You can sometimes check here to see what new customers would get charged for your property. Depending on your setup

https://www.ovoenergy.com/home-energy-plans

No one pays 34p per kWh and 45p per day. This is an average across all regions. Every region has a slightly different rate. 

Are you an ovo customer? Are you an Economy 7 user? 

 

Userlevel 7

This thread is from July - when Boris was still PM and before the EPG was devised !! Even the update of 28th August is out of date. 

 

Good point, Julia! On the 7th I thought I found every single price cap related topic and updated the ‘best answer’. Somehow this one slipped the net. Updated now. 

 

@Biggles I can’t say for sure why (or where) you’ve seen different price options. As the ‘best answer’ now advises, we will send you an email about your best option. It can be complicated to work out from the outside but OVO are basically doing everything to make sure our customers get the best deal and all the flexibility to change.

 

For example if you were on a fixed plan but moved to the variable, you can still go back to the fixed plan if there’s more than 6 weeks left. If you stayed on fixed but now want variable, you can do that as well. Lastly, we are offering new fixed plans so bear in mind those will be on show when browsing available fixed plans

 

Hope this helps. 

I have been advised that the OfGen price cap applies to gas and Electricity  and is a cap noot and average for suppliers to pick and choose what tariffs the charge their customers.

That defined cap for Electricity is 34.0p per kWh and 45.0p per day. Of course suppliers can charge less and the customers annual usage my result in their annaul bill being higher that the reported average £2500

However OVO have advised me of tariffs that range between 32p and 35p per kWh and 45p and 53p per kWh with one agent even claiming VAT was extra. All were the same rate on the simple Variable Tariff. How can OVO offer different prices and discriminate between customers for an identical tariff? It is not justified.

Hence I am waiting for OVO to clarify their rates for the simple variable tariff and why I have been advised the new rate should I renew will be 33.7p per KWh and 52.7p per day +VAT, when the web site rate offers 33.72p per kWh and 49.14p per day  incl VAT? 

Userlevel 7
Badge +2

I have been advised that the OfGen price cap applies to gas and Electricity  and is a cap noot and average for suppliers to pick and choose what tariffs the charge their customers.

That defined cap for Electricity is 34.0p per kWh and 45.0p per day. Of course suppliers can charge less and the customers annual usage my result in their annaul bill being higher that the reported average £2500

However OVO have advised me of tariffs that range between 32p and 35p per kWh and 45p and 53p per kWh with one agent even claiming VAT was extra. All were the same rate on the simple Variable Tariff. How can OVO offer different prices and discriminate between customers for an identical tariff? It is not justified.

Hence I am waiting for OVO to clarify their rates for the simple variable tariff and why I have been advised the new rate should I renew will be 33.7p per KWh and 52.7p per day +VAT, when the web site rate offers 33.72p per kWh and 49.14p per day  incl VAT? 

In case it helps @Biggles 

From the government website. 

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

This is a cut and paste from the government website. 

If you’re on a standard variable tariff

 

The average unit price for dual fuel customers on standard variable tariffs, subject to Ofgem’s price cap, paying by direct debit will be limited to 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October.

These are average unit prices, the unit rate itself varies by regions and the full list of rates have been passed to suppliers to ensure that they are used to calculate bills in Great Britain from 1 October. See the full list of regional rates.

 

Standing charges

Average standing charges for customers on default tariffs will remain capped in line with the levels set (in Great Britain) by Ofgem for the default tariff cap from 1 October, at 46p per day for electricity and 28p per day for gas, for a typical dual fuel customer paying by direct debit. Standing charges for households in Northern Ireland will also be unaffected.

 

Standing charges have always varied by region even before the Energy Price Guarantee. 

Userlevel 7
Badge +2

Hi @Biggles 

I see you’ve been getting some excellent advice on here.

Just to reduce a bit of the guesswork, would you mind saying which region you are in? Also what method of payment were you being quoted for? The website will give tariffs based on payment by direct debit.

I believe region is midlands and the rate quoted was the only one that is available Simple energy variable.

Have not seen any advice yet that explains why I have been given a range of prices over the period of a week.

 

Userlevel 7
Badge +3

Are you planning to pay by direct debit/pay on demand/prepayment? They are different rates.

Userlevel 7
Badge +2

I believe region is midlands and the rate quoted was the only one that is available Simple energy variable.

Have not seen any advice yet that explains why I have been given a range of prices over the period of a week.

 

The electricity Energy Price Guarantee for the Midlands region is 33.73p/kWh and a 49.15p standing charge if paying by direct debit.

The Simpler Energy price if paying by direct debit is 33.72p/kWh and a 49.14p standing charge inclusive of VAT. You would get a different price if you wished to pay on receipt of bill or were a prepayment customer. This is one possible reason that you may have got a range of prices.

Userlevel 7
Badge

I can’t see that anyone has addressed the original question in this thread: What is the current price capped tariff for two rate economy 7? The marked answer makes no mention of Economy 7.

OVO are currently offering me an E7 tariff with these values:
 

Tariff Name

OVO Energy – Simpler Energy

Tariff Type

Fixed for Variable

Payment Method

Monthly Direct Debit

Unit Rate

38.64p per kWh

Night Unit Rate

18.86p per kWh

Standing Charge

45.85p per day

Exit fees

£0

Assumed Annual Consumption

2100 kWh

 

This is in the East Midlands region (11), so rates in most other places are likely to be higher. The capped price here is 31.446p/kWh, so the rates shown equate to:

Day unit rate: 1.23 x price cap
Night unit rate: 0.60 x price cap

These figures seem to assume that peak usage is 1.75 x offpeak usage, meaning that E7 will be cheaper than single-rate so long as the daytime usage is less than ~64% of the total. 

E&OE, of course.

My fixed tariff is due to end on 28th Feb 2023. I have had an email from Ovo saying:

You don’t need to do anything. If you’re close to the end of your current plan, you'll automatically move to our variable Simpler Energy plan when this finishes.”

I can’t find on my Ovo how the fixed tariff and simpler energy plan differ. Am I able to renew my fixed tariff? Would I be better switching to the simpler energy plan? When will I know how much my gas and electricity will be increasing by? I am just a bit concerned because I now only have 8 weeks and I don’t really know what to do.

Sorry for sounding so thick, hopefully someone can shed some light for me x

Userlevel 7
Badge +5

Hi @LilMissM there are no fixed deals that I have seen around due to the price hikes and you won’t be able to continue on your current plan. What is suggested is that you let things roll over onto the standard variable plan which is the one with a limit on top rates.
You can of course look at others but most are the same pricing at present. I think the only difference would be if you want something extra like economy 7 or for an electric vehicle charging period

Userlevel 7
Badge +1

Hey @LilMissM ,

I’m one of the forum volunteers, so I can’t access your account. I see @BPLightlog also stopped by while I was writing this up. I’ve adapted my reply in response.

Usually, the answer would be yes you can renew a fix deal. However, right now they’re not available at all from any supplier and the only option is to roll onto the variable rate tariffs. There’s not much difference between them, but the important things to know about the variable rate Simpler Energy plan are:

  • You can leave the tariff at anytime - you’re not locked into a contract
  • Prices can change at anytime - both up and down
  • You will always be told about price changes before they happen

Thank you both so much for the advice, I certainly feel a lot calmer mentally about it now. I am worried however that the price I pay each month will be different from month to month. I am not particularly savvy when it comes to finances and like to pay everything by DD so I know things are paid and I know how much money I need to keep aside to cover my DDs. Will Ovo let me know the difference in prices from what I pay now to what I will pay on a variable rate? That sounds like a dumb question because I guess the answer is in the tariff title “Variable rate Simpler Energy plan”! I am just worried that I won’t know in advance what will be coming out of my bank x

Userlevel 7
Badge +1

If you’re paying OVO by Direct Debit, that will stay the same even on Simpler Energy and will remain as a Fixed Direct Debit just like it is now. The amount may have to go up, but you’ll get told that as well before any changes are made.

While the rates can change at anytime, they don’t go up that fast. You’ll get all the details in the next few weeks if memory serves.

Userlevel 7
Badge +5

It’s quite a time with prices isn’t it @LilMissM 

As @Blastoise186 mentions, OVO will try to adjust your direct debit so that you pay a standard amount although of course it might change a little. The price per kWh will change of course compared to your current tariff but if you have a good history of use over a year or so, it should be easy to calculate and let you know

This is my first time using this forum. I came here feeling anxious with questions that in my head just sounded dumb.

Thank you @Blastoise186  and @BPLightlog so much for your replies. I definitely feel calmer and much more informed having someone explain things in plain and simple terms.

Thank you :) x

Userlevel 7
Badge +1

No worries. :)

We’ll be here if you need us again for anything, so feel free to stop by anytime and ask as many questions as you fancy!

I am on SVR and live in the N Wales and Mersey (formerly Manweb) region. Please can you tell me what my unit rates and standing charge rates will be for the rest of 2023?

 

If not known yet for the whole of the rest of the year, what do we know so far?

 

N.B. Plan offered on Ovo website shows:

Elec; 35.97 per KWh and 48.59 daily

Gas: 10.32 per KWh and 28.48 daily

 

Thanks,

Simon

Userlevel 7
Badge

Current rates are governed by the Energy Price Guarantee (EPG) and by the Energy Price Cap (EPC). The current EPG maximum rates apply until 31 March, so there will be no increase to default tariffs before then. The EPC for April-June will be announced in a couple of weeks’ time. So, to answer your question - nobody knows what the future beyond 31 March will bring, but the average GB household’s annual energy cost will be kept below £3000 by the EPG until April 2024. There has been speculation that prices might even fall a bit from April 2023 onwards.

 

Reply