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Why are the fixed prices on my renewal letter higher than the variable rates? Does this include the upcoming variable price change?


I dont understand the page for my renewal. The fixed rates are 42p and 14p but the variable only show 21p and 4p, Is there no way of giving us an estimate of what they are going to be after the rise...

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Best answer by Jess_OVO 8 March 2022, 14:44

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Userlevel 1

Found this depends on your plan

The new rates shown in the email won’t come into effect until 1 April if you are on the Simpler Energy Economy 7 tariff.   But I believe if you are on a new fixed tariff then this tariff may start immediately if switching from a variable tariff.   My tariffs are currently but this may differ in other parts of the UK. 

standing Charge:    24.19p per day rising to 43.48 per day on 1 April

peak Rate.                 21.99p per day rising to 30.96 per day on 1 April

Night Rate.                15.54p per day rising to 21.00 per day on 1 April

ALL the above rates include VAT at 5%

 

Was posted on another thread
 

Userlevel 1

They are literally doubling mine from 24p to 50p a day.

 

DOUBLING.


How do I get out this of this place?

Userlevel 1

They are literally doubling mine from 24p to 50p a day.

 

DOUBLING.


How do I get out this of this place?

 

It is the same with all suppliers and majority are not taking on new customers
My Eon tariffs are higher.

Gas prices are unbelievable at the moment and it looks like it is going to get worse

Government have stitched up Energy suppliers while they give you a loan to pay back

 

Userlevel 7

Thanks for raising this important topic, @rachelmitchell.

 

As we confirmed in this similar thread, the variable rates currently advised on your renewal email aren’t reflective of the upcoming April price increase. If you decide to opt for the Simpler Energy plan, we’ll be sending you another email in the coming weeks to advise of the new rates on this plan.

 

We really take on board the feedback that this could be made clearer on the initial renewal emails and have passed this on the the team responsible for these communications.

So Jess, if we didn’t take a fixed rate, what would be the variable?? As at the moment the fixed rate is higher?

Userlevel 7

Sorry for the confusion there, @rachelmitchell - If your current fixed plan is due to end on or just after April 1st you should’ve received a separate email advising you of the increased Simpler Energy rates.

It’s worth double-checking your email inbox as this email should’ve been sent out at least 28 days before the end of your current plan (make sure this hasn’t ended up in that pesky spam folder).

 

Hope this helps. :slight_smile:

Userlevel 7
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Sorry for the confusion there, @rachelmitchell - If your current fixed plan is due to end on or just after April 1st you should’ve received a separate email advising you of the increased Simpler Energy rates.

It’s worth double-checking your email inbox as this email should’ve been sent out at least 28 days before the end of your current plan (make sure this hasn’t ended up in that pesky spam folder).

 

Hope this helps. :slight_smile:

I haven't received an email about the new Simpler Energy rates either.

Plus the rates on the renewal page when i log on still have the old rates even though i would never pay them as my renewal date is 26th April.

So i can appreciate what @rachelmitchell is saying.

Are you sure people on current fixed rates are getting the emails about the Simpler Energy rates going up? Is it just people on the Simpler Energy plans getting the emails? 

Userlevel 7

So I double-checked this one with the team, @Jeffus.

They’ve confirmed that you should receive an email with the updated rates at least 28 days before you’d be due to roll onto this plan, which I’d assume in your case would be before the 29th March. If you’d like to check the upcoming rates in advance of receiving this email our Support Team can confirm these for your area.

 

I hope this helps.

Userlevel 7
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So I double-checked this one with the team, @Jeffus.

They’ve confirmed that you should receive an email with the updated rates at least 28 days before you’d be due to roll onto this plan, which I’d assume in your case would be before the 29th March. If you’d like to check the upcoming rates in advance of receiving this email our Support Team can confirm these for your area.

 

I hope this helps.

Good to know, thanks

I personally assumed the Simpler Energy rates would be the same as the new price cap so just completely ignored the renewal quote I was given and which was resent yesterday. The rates are clearly never going to apply to me. 

To be honest it is not me i was worried about, it was the potentially thousands of others that would have looked at renewal quotes and not realised and never contacted ovo to check. 

It is what it is, i have made my point. I appreciate you following up. 

 

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

 

Current Plan (1 Year Fixed) - £90 per month

 

Electric:

  • 17.09p/kWh unit rate
  • 21.55p per day standing charge

 

Gas:

  • 2.84p/kWh unit rate
  • 23.63p per day standing charge

 

Renewal Plan (1 Year Fixed) - £296 per month

 

Electric:

  • 43.14p/kWh unit rate
  • 48.43p per day standing charge

 

Gas:

  • 14.42/kWh unit rate
  • 27.52 per day standing charge

 

+229% increase

+206 per month

+£2,472 per year

 

Not only this, but even at £90 per month I was overpaying (I have £650 in credit). This increase is surely too much. Can anyone advise please? 
 

Thank you in advance. 
 

 

Userlevel 6
Badge +3

I'm not an expert but it looks like the fixed rate you've been offered is above the level of the price cap so I would have a look at the variable rate that's available. The variable rate will change in April but I think it will still be less than the fixed rate you've been offered.

Userlevel 1

Has OVO published new capped rates from April ?

Had a quick look on internet looks like no one is keen on publishing them  or have i missed them

Userlevel 7
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Not yet that I know of. Strictly speaking, OVO can’t publish them until they become active as it may otherwise confuse people over the active rates.

Userlevel 1

Here are some official capped rates different company doubt they will be far out yikes

Electricity standing charge (per day) 28.14p 49.68p 21.54p  +(76.55%)
Electricity unit rate (per kWh) 19.96p 27.38p 7.42p  +(37.17%)
Gas standing charge (per day) 35.13p 37.28p 2.15p  +(6.12%)
Gas unit rate (per kWh) 3.92p 7.27p 3.35p  +(85.46%)

 

Userlevel 7
Badge +1

I’m afraid those rates probably won’t apply to OVO and might only be for a single region. It’s best to check with OVO directly for the rates that will apply to your supply.

I think the Support Team can check them for you.

Userlevel 7
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@Jess_OVO

@Blastoise186

I asked customer services as suggested what the rates would be in April. Does this look about right? I appreciate they vary by region

-------

Hi xxxx Your renewal rates for our Simpler Energy plan from the 26th April 2022 are as follows: xxx per month xxx per year

Variable:

Electricity Unit Rate: 19.87p/kWh

Standing Charge: 22.87p/day

Usage Projection: xxx kWh

Gas Unit Rate: 3.86p/kWh

Standing Charge: 24.87p/day

Usage Projection: xxx kWh

Exit Fees: N/A

All rates exclude VAT.

Thanks, xxxx

Userlevel 6
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No, they don't look right. Electricity should be nearer 29p and gas should be about 7.5p (both per kWh).

Userlevel 1

Here is BOOSTs owned by OVO  variable capped but pay as you go

PAYG normally slightly higher 

 

Electricity standing charge (per day) 28.14p -  49.68p 21.54p  +(76.55%)
Electricity unit rate (per kWh) 19.96p -  27.38p 7.42p  +(37.17%)
Gas standing charge (per day) 35.13p -  37.28p 2.15p  +(6.12%)
Gas unit rate (per kWh) 3.92p - 7.27p 3.35p  +(85.46%)

Can anybody answer the question why daily standing charges are increasing. In the help blurb it says that standing charges relate to the cost of infrastructure. Is there some major upheaval in pipes that we are not being told about of is it profiteering? The cost of gas and electricity is rising, but not the pipework. Any help or advice appreciated. 

Userlevel 1

Think some is green levy ect would not surprise me if some of it is Sunaks £200 loan repayments or maybe saving that till Oct 

Userlevel 7
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Hi @Bobbo ,

I’m Blastoise186, one of the forum volunteers. Glad to meet you. :)

That is true, but can be explained by current events. You may recall that last year, nearly 30 energy suppliers collapsed - full list here - resulting in several million customers being displaced and as a result, having to be re-assigned to alternative suppliers via the Ofgem Supplier of Last Resort process. On average, there’s only usually maybe one or two suppliers that enter SoLR per year, but 25+ in 2021 was an extreme edge case and this puts pressure on everyone else.

The suppliers that take on such customers are allowed to claim back the costs of doing do - and many do - which has to be recovered somehow. This is often done via standing charges because (if memory serves) the bill for this falls on the DNO and gets recirculated back to all energy suppliers who then pass it onto their customers. This explains a good chunk of the increase that can’t be explained by the usual reasons.

One of the other big factors this time is to allow energy suppliers to recover some of the losses from the market crashes that happened last year. The Ofgem Default Tariff Cap is intended to play fair for both customers and suppliers and isn’t meant to subsidise your energy bills. Because of this, Ofgem decided to allow an additional uplift of the April 2022 to September 2022 price caps to help suppliers recoup losses in a reasonable manner.

Almost all the rest comes in the usual categories like increased costs etc. Only a tiny portion is for extra profit, but then again profit margins are razor thin anyway.

I hope this helps.

Userlevel 7

@Jess_OVO

@Blastoise186

I asked customer services as suggested what the rates would be in April. Does this look about right? I appreciate they vary by region

-------

Hi xxxx Your renewal rates for our Simpler Energy plan from the 26th April 2022 are as follows: xxx per month xxx per year

Variable:

Electricity Unit Rate: 19.87p/kWh

Standing Charge: 22.87p/day

Usage Projection: xxx kWh

Gas Unit Rate: 3.86p/kWh

Standing Charge: 24.87p/day

Usage Projection: xxx kWh

Exit Fees: N/A

All rates exclude VAT.

Thanks, xxxx

 

Sorry for any confusion which might’ve been caused by this email, @Jeffus.

 

I’ve just sent you a PM to check your details so we can get to the bottom of this.

 

Hope this helps

Userlevel 7
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@Jess_OVO

@Blastoise186

I asked customer services as suggested what the rates would be in April. Does this look about right? I appreciate they vary by region

-------

Hi xxxx Your renewal rates for our Simpler Energy plan from the 26th April 2022 are as follows: xxx per month xxx per year

Variable:

Electricity Unit Rate: 19.87p/kWh

Standing Charge: 22.87p/day

Usage Projection: xxx kWh

Gas Unit Rate: 3.86p/kWh

Standing Charge: 24.87p/day

Usage Projection: xxx kWh

Exit Fees: N/A

All rates exclude VAT.

Thanks, xxxx

 

Sorry for any confusion which might’ve been caused by this email, @Jeffus.

 

I’ve just sent you a PM to check your details so we can get to the bottom of this.

 

Hope this helps

Thanks for sending me the correct figures @Jess_OVO 

Userlevel 7
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So I double-checked this one with the team, @Jeffus.

They’ve confirmed that you should receive an email with the updated rates at least 28 days before you’d be due to roll onto this plan, which I’d assume in your case would be before the 29th March. If you’d like to check the upcoming rates in advance of receiving this email our Support Team can confirm these for your area.

 

I hope this helps.

Just to let you know I didn't get an email on the 29th and the ovo website still hasn't been updated for me. You kindly sent me the correct rates so it is not a problem.

Perhaps the rates online will click over on the 1st April. I will keep an eye on it. 

This is from this morning on the 30th.

 

Userlevel 7
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And now the 1 year and 2 year and variable rate quotes have all disappeared. So i can't see any of them or select one of the fixed quotes

When i ask OVO online about my plan, they replied:

"Your renewal plan hasn't been confirmed just yet but as you're currently on a fixed plan, if you don't take any action, you'll be automatically moved onto the Simpler Energy tariff (variable)." 

 

So i have no idea of any of the offers now. I have asked if the offers will reappear. I am not honestly sure what is going on now. I just hope i haven't been put onto one of the fixed rates somehow. Not had any emails so i assume not, but there doesn't seem to be a way to check online unless i missed it. 

Let's see what ovo say in their reply online and if my renewal quotes reappear.  I assume the quotes shouldn't have disappeared. 

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