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Why is the Variable Rate on Simpler Energy plan (even with the new price increase from Oct 1st) so much cheaper than the fixed rate plans?

  • 17 September 2021
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Why is the Variable Rate (even with the new price increase from Oct 1st) so much cheaper than the fixed rates?

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Best answer by Jess_OVO 18 September 2021, 20:39

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Updated on 03/05/22 by Jess_OVO

 

Thanks for asking a really important question, @sfellows99.

 

Unfortunately due to the continued increase to wholesale energy costs the fixed plans available are priced to reflect this. We’ve covered this in more detail on our energy market conditions FAQs and blog.

 

As the variable rates are protected by Ofgem's variable price cap the Simpler plan may currently the cheapest available tariff, however it's worth considering that prices on this plan are not fixed so this may not be the case in the coming year. Our members have been discussing how they’ve made their own renewal decisions in light of the current energy industry conditions over here.

 

 

We know that these price increases may be worrying so have more advice and support to help here.

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