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Why have I seen such an increase in my daily costs since I started a new fixed plan?

  • 7 March 2022
  • 5 replies
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I was offered a £220 per month fixed term tariff in Feb but stupidly didn’t take it up because it was over £100 more per month more that the tariff I was currently on.  On Saturday I realised that I should have taken it so went back on again.  The tariff had risen by another £100 and I couldn’t find anywhere less so took it.  Yesterday my daily cost (on smart meter) was 3 x higher than before,  I had only had heating on for an hour in the morning and then on late afternoon,  TV didn’t go on until late afternoon, cooking was only 40mins in a combi-microwave and there were no showers/washing etc.  The new tariff was only shown to be double the rate not triple?  Plus it’s supposed to be 100% renewable electricity so why has that tariff doubled?  

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Best answer by M.isterW 7 March 2022, 20:02

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Userlevel 7
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The fixed tariff you signed up to would have quoted an average direct debit amount a month. This is meant to smooth out the amount you pay over a year. 

However you will use dramatically more energy in the winter than the summer. You won't normally have the heating on in the summer for example. 

So you will see the daily cost on your smart meter dramatically different in the winter vs the summer. The daily cost will be higher in winter, lower in summer. 

It should even out over the year, but of course still depends on how much energy you actually use. 

Thank you Jeffus, I do understand thatm but I’m just concerned that I was expecting my energy cost to be double with the new tariff not triple and the tariff does not seem to take the less summer usage (the costing per kw unit was shown as double when selecting the tariff) especially as I’ve cut down usage, i.e no heating/TV during the daytime.  I appreciate that energy prices are set to rise by approx 54% (Ofgem) but this is ridiculous. Taking into account a 54% increase my monthly payment should be nearer £180pmth (from £116) not £308 even on my old tariff I was always in credit and still am by £172.  Is anyone else experiencing such a massive hike?   

Userlevel 6
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Energy prices are rising and, unfortunately, are likely to rise even more. Comparing monthly prices is difficult because there isn't a consistent way to estimate how much electricity you're going to use. It's better to look at the price per kWh and the daily standing charge when comparing tariffs to make sure you're making a valid comparison.

 

If you were previously on a fixed tariff you could see a rise of more than 54% because your old tariff might have been well below the level of the price cap.

 

As for your question about renewable electricity... there's a single market for electricity in the UK so however it is generated the prices rise and fall together.

 

Some really great advice being offered by our OVO community members, @Angie1.

 

As mentioned the average price increases advised by Ofgem may not reflect the change in your costs, particularly if you’ve renewed a fixed plan with us. 

 

There’s more advice on the Price cap increase and what this means for our members over here

 

Userlevel 7
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My fixed rate tariff comes to an end in April.

The OVO fixed rate i am currently being offered is more than 3 times my current rate as well. 

I expect it will be the same for everyone coming off OVO fixed rate tariffs at the moment.

It may get even worse as shortly suppliers will be unable to offer special deals to existing customers from 14th April. 

https://www.ofgem.gov.uk/publications/decision-short-term-interventions-address-risks-consumers-market-volatility

Existing and new customers have to be offered the same rates

It is not clear if any suppliers will want to offer an attractive tariff open to all

 

Userlevel 7

Some really great advice being offered by our OVO community members, @Angie1.

 

As mentioned the average price increases advised by Ofgem may not reflect the change in your costs, particularly if you’ve renewed a fixed plan with us. 

 

There’s more advice on the Price cap increase and what this means for our members over here

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