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

  • 10 February 2017
  • 31 replies
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31 replies

Interesting that the market price is driving the increase, the electricity I feed into the grid pays me 3.57p per kWh the new tariff proposed if I lose half of my current fixed period and go for two years is 15.28p per kWh. So distribution overheads and profit seem to be the main cost in the equation. Plus of course the dreaded standing charge, which I guess funds the smart meters.

My best solution may be local storage instead of feeding the grid to use when the sun is not out.
This is the article that made me ask my question, https://www.theenergyshop.com/advice-guides-energyInflation, turns out it's a site recommending shopping around and of course doing so using their quote engine. But I found it chilling that the ever increasing prices are thought to be the fault of loyal customers! With the government suggesting capping the rates of loyal sitters, then they won't switch. So no more free market? I remember at school learning about the overriding benefit of free markets ( google Adam Smith' ) it's why I left BG and came here ( on a recommendation). Just as I left BG, they found they'd 'forgotten' to charge for my electricity for six months. I checked, it was actually true. It had made my DD seem 'not so bad'. But the truth was that I had been a "sitting cash cow". I saved hundreds coming to OVO.

But does a free market demand that most of us must never be loyal to just one supplier? We might as well use energy brokers - but surely isn't OVO also shopping around for energy at the best price and passing the benefit on to us? Or are there one or more "cartels" such as OPEC, in the wholesale energy market artificially controlling prices? If so energy users shopping around will only have a limited effect, and the government would not then be targeting the most powerful players, and so will fail to help create a truly free market.


@Fjowls, @atilagiant, @SianiAnni: Any of you techy lot have any thoughts on this? :?

Tim
I have been an OVO Customer since 2010 and my contract is due for renewal in June 2017, I am afraid the 29% plus price increase for gas and electricity is to much for me, I have already looked around and there are companies offering the same energy for much less, so it is goodbye OVO for me next month.
Oh and by the way do not be fooled by the smart meters, my close friend has one, the gas part of the meter switched the gas off on Christmas Eve, so no heat or hot water for 5 days over Christmas, he was paying £12.99 a month for maintenance contract for gas and electric, they showed up as promised but could not touch the meter.
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?
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.

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