Do you want to know more about changes in our prices?

  • 10 February 2017
  • 31 replies
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31 replies

Userlevel 6
Badge +4
I am wonderimg why unit costs have risen so drastically for the next 12 months. I joined Ovo and remained because they were so competitive. I now find that i can save a lot of money transferring to EDF. I understand the rise im wholesale prices, but cannot fathom why your increase is so much more than the so-called larger providers. Standing charge is not the issue... your comparative rate per unit taking that into account is still significantly higher. Much as I have no desire to leave, sentiment is no reason to remain. Can you please explain the price hike?

Hi @LiamW and thanks for posting on the forum.

From what I've seen on other posts: unit prices and increased vary depending on where you live, so the best way to get a more detailed explanation would be to drop either @Lucy_OVO @Tim_OVO or @Darran_OVO a private message with your full name, address and OVO account number and they will look into it for you.

Hope they can help you shortly with an answer
Userlevel 1
I've seen the "change to a 2 year plan" offer too. It's actually a difficult decision. I get that energy prices are Up at the moment, and that a fixed rate plan is the way to go. I renewed onto a 1 year plan in December, and got in before the recent round of price rises, but it feels oddly like Gambling, in a strange way. If energy prices continue to rise as they are right now a 2 year plan makes sense, but no-one Really knows what's gonna happen beyond a few months. I could be left behind if prices drop again...

My question is, How long is this Free Switch to 2 Year Plan offer going to be available? If I wait to see how things go price-wise until later this year, might I find the offer has been withdrawn?


In all honesty, stateofit, we don’t know. We think it's a great idea for customers to fix their energy for longer, so we’re hoping to be able to offer it for a while but as with all pricing related matters, changes in the energy markets could make it unsustainable for us for keep offering it (but we hope not!).

We like being able to offer it and like that customers are interested in it, but it would be wrong of us to make any promises, because we really don't know and don't want to disappoint customers.

Hope this helps,
Lucy
Userlevel 1
The 2 year fix doesn't say whether it is green or not - just that it is a fix. Can OVO clarify please?
Userlevel 6
Badge +2
I am wonderimg why unit costs have risen so drastically for the next 12 months. I joined Ovo and remained because they were so competitive. I now find that i can save a lot of money transferring to EDF. I understand the rise im wholesale prices, but cannot fathom why your increase is so much more than the so-called larger providers. Standing charge is not the issue... your comparative rate per unit taking that into account is still significantly higher. Much as I have no desire to leave, sentiment is no reason to remain. Can you please explain the price hike?

Hi Liam,

Thanks for getting in touch about this.

It’s true that our prices have increased over the course of 2016/17. This price change reflects a progressive upward trend in the wholesale commodity price of both gas and electricity. For example, since 10th June 2016, the forward price of gas has increased by 23% and electricity by 30%. Cost reflective pricing means we pass this increase on to our customers, across all of our tariffs.

What some suppliers might do is offer loss-leading tariffs to entice new customers, and subsidise these losses by charging high prices for their customers on standard variable tariffs. That’s not the OVO way, so we keep it open, honest, and we hope for wholesale costs to drop.

As it’s a good question, I’ve moved this to another topic on price, not specific to just Pay monthly users.

Hope this helps,
Tim
Hello OVO, like LiamW I think you need to explain how you can justify a 30% increase in prices. As much as I like the convenience of your internet service and the community forum, that may not be sufficient to retain me and a lot of other customers unless you can provide a fuller explanation of what is going on in the market place and where you sit against your competitors. If you can't or won't then you will drive people to the comparative sites and you end up just another commodity company.
Userlevel 6
Badge +2
Hello OVO, like LiamW I think you need to explain how you can justify a 30% increase in prices. As much as I like the convenience of your internet service and the community forum, that may not be sufficient to retain me and a lot of other customers unless you can provide a fuller explanation of what is going on in the market place and where you sit against your competitors. If you can't or won't then you will drive people to the comparative sites and you end up just another commodity company.

Hi @Billred,

Fair do's , but check out my comment above. It specifies wholesale cost increases and gives a cheeky suggestion for how some suppliers can offer tariffs that seem to contradict these increases. With a potential price cap for those standard variable tariffs, this might change things!

Tim

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