Renewal time. For the first time since I have been with Ovo, there is no one-year fixed price tariff.
And whereas the variable tariff was perhaps seen as more risky in the past, which is why many people fixed, it is now over 35% more expensive for me to fix for 3 years and 55% more expensive for me to fix for 2 years - compared to the variable tariff now.
I understand the lower variable price is because of the Ofgem cap that has not been updated (and that companies are losing money on this tariff now).
I was told by customer service that the lack of a one-year fix tariff was ‘due to market conditions’. Surely Ovo could have offered a one-year fix that people would have gone for? Or would it have had to be so much more than even the current two-year fix? As I have fixed for one year every year until now, I might well have gone for that again. I cannot see any sense in fixing for 2 or 3 years and risking £120 or £60 to exit the contract if prices do not rise that much and other tariffs are better. When the cap is raised in March 2022 we will see what is offered for a fix then.
Can someone from Ovo offer any insight as to why it was not possible to offer a one-year fix this time?
Best answer by Jess_OVOView original