Solved

Renewal prices are too high - do you price match?


I am a Pay monthly customer.

I have looked at my usage, and used Money supermarket to asses other suppliers as well as OVO and the renewal offers.


OVO is around £200 more expensive PA than the cheapest and £140 more that the cheapest that i would consider.

But...

I dont really want to leave OVO, Can you help me out with the prices? I am prepared to sign up for a 2year fixed if you can offer me something to close the gap on price?

If nothing else this post must be worthy of a discount, simply because it doesnt involve the yawn fest that is smart metering.
icon

Best answer by stateofit 25 March 2017, 08:13

It's a crazy time in the energy market. The wholesale price of gas and electricity has gone rocketing up in the last 8 months or so (Yes, I look up stuff like this, I'm abit sad...). Beginning of 2016 prices were very low, and have just gone up and up since June, and are apparently still going up...

One of the things I really like about OVO is the fair and honest pricing policy : The unit rates are amended to match the wholesale price, so last year when prices Fell many energy companies rubbed their greedy hands with glee while OVO dropped prices almost immediately. This year energy costs more so prices have to go Up...

There's a worrying trend in energy now with some companies doing those "cheap deal for new customers only" type of deals, like they've done in insurance for years. They hook you in with a good rate, only to find that you can't have the same deal next year cos your "not new business anymore". They rely on people forgetting to do something about it, and then you're on a high cost tariff again. Horrible way to treat customers. And I can only assume that the higher cost tariff help pay for the cheap deals...

OVO give everyone the same price so it's fair. I know that no-one's getting a better deal than me cos they arrived more recently or pretended they wanted to leave... I really respect that, and while I did see a few cheaper deals around my renewal in December I happily sucked up the higher rates this year, cos I doubt very much that Bob's Discount Energy have a great website, simple bills or a forum like this...

And didn't an energy company go under last year? GB...? I'm fairly certain they tried to offer cheap deals to win business and got caught out by the rising costs. Somehow I don't think that's gonna be an issue with OVO, they seem to know what they're doing...

**Updated 24/07/2019**
View original

55 replies

@Amy_OVO The interest reward is good but I'd have to put in £8k to recoup the £400 which I don't even think is possible ;-)

Thank you for you kind words - and yes I hope to be back. This is the end of my second stint with Ovo and both times I've left because of pricing. I think this just emphasises the market is truly broken as you don't want me to switch, I don't want to switch but we have to do this dance every few years 🙂
Userlevel 4
Badge
I've just signed up with Bulb Energy as my electric (in particular) and gas tariff with Ovo was due to go up by an eye-watering amount once my 2-year fixed contract ended. I think I've been with Ovo for four years now and have noticed a decline in both quality of service (the whole "reward" saga for example), and a disinterest in pricing competitiveness, and that's before we talk about one of the highest daily standing charges in the energy market.

If you use MoneySavingExperts' Cheap Energy Club, it's easy to see how much Ovo's tariff has increased and other suppliers' customer satisfaction has risen.

I am going to have to read my own smart -- soon to be dumb -- meters until the whole SMET1 fiasco is resolved. This is not Ovo's fault of course, but reading my own meters with Bulb Energy saves me £300 - £400 per year at current Ovo / Bulb Energy rates and that's not to be sniffed at.

All that said, I'm a bit sad to leave Ovo, as in many ways, despite my criticisms, they at least make an effort to deal with customers fairly, and that's not something that can be said of all energy suppliers.
I think you will find that you revert to OVO's standard variable tariff until the switch is complete.
I'm just coming to the end of my fixed contract and my renewal quote is far too high. Even the 2 year offer does not seem to me to be a good deal given how much higher it is than the best of the current prices.

I mentioned this to OVO in a recent phone call and the response was that it's a risk going to some of these smaller companies as they could easily go bust. Whilst this is partially true, this response was just the same one given 6 years ago by British Gas when I told them I was leaving them to join OVO. It seems to me that OVO is getting the "Big 6" mentality and if they are not careful, the smaller start ups will start chipping away at OVO's business just as OVO did to the "Big 6" in the good old days.

I haven't made my mind up to leave yet, but I'm close.
No response on this and it looks like an email or even a phone call is going to cost me my "self-service reward" now. Prices being beaten by Big 6, customer service firewall, reviews sliding - not the company I thought I was signing up with for years. Sadly, time to go.
Userlevel 5
Badge
It's a shame to hear you're leaving, @Organic.

We don't offer different prices to our customers based on tenure, this wouldn't be in line with us priding ourselves on transparency.

We do however, reward our loyal customers, they are very important to us. Our OVO Interest Reward is our way of thanking our customers for their loyalty. You'll start with a 3% reward in your first year, before we increase it to 4% in year two, and 5% the following year. Essentially, the longer you stay with us, the more we'll say thanks.

If our rates are more favorable for you in the future please keep us in mind.

Thanks!
Thanks for flagging this @StewIris

It sounds like something isn't right here, and I'd like to look into this a bit further. Please could you send us a PM on Facebook, including your full name, account number and DoB? A screenshot of the rates you're looking at online would also be really helpful.

Cheers,
Emily

p.s. I've moved your query over to our renewal discussion.
Userlevel 7
Badge +2
Been with OVO for 5+ years. Want to stay but your prices are much less competitive than they used to be

Hi @jklondon

Just so it's easier, I've actually move your original comment to a topic we already have on Pay monthly prices. We'd love to hear what you think of the chat and see you get involved. Have a look at the best answer also, and let us know what you decide!

Tim
Userlevel 3
Badge +3
It's a crazy time in the energy market. The wholesale price of gas and electricity has gone rocketing up in the last 8 months or so (Yes, I look up stuff like this, I'm abit sad...). Beginning of 2016 prices were very low, and have just gone up and up since June, and are apparently still going up...

One of the things I really like about OVO is the fair and honest pricing policy : The unit rates are amended to match the wholesale price, so last year when prices Fell many energy companies rubbed their greedy hands with glee while OVO dropped prices almost immediately. This year energy costs more so prices have to go Up...

There's a worrying trend in energy now with some companies doing those "cheap deal for new customers only" type of deals, like they've done in insurance for years. They hook you in with a good rate, only to find that you can't have the same deal next year cos your "not new business anymore". They rely on people forgetting to do something about it, and then you're on a high cost tariff again. Horrible way to treat customers. And I can only assume that the higher cost tariff help pay for the cheap deals...

OVO give everyone the same price so it's fair. I know that no-one's getting a better deal than me cos they arrived more recently or pretended they wanted to leave... I really respect that, and while I did see a few cheaper deals around my renewal in December I happily sucked up the higher rates this year, cos I doubt very much that Bob's Discount Energy have a great website, simple bills or a forum like this...

And didn't an energy company go under last year? GB...? I'm fairly certain they tried to offer cheap deals to win business and got caught out by the rising costs. Somehow I don't think that's gonna be an issue with OVO, they seem to know what they're doing...

**Updated 24/07/2019**
I am all for shopping around - I changed to OVO about 3 years ago because they were at the top of the Times Utility list for some weeks and I was not particularly happy with British Gas at the time. Since that time OVO has slipped from the top spot on price however there are such horror stories out there about some of the big suppliers now that it is well worth doing a bit of research before switching, and I have found OVO to be generally very obliging and efficient which for me adds value.
Alternatively, try the Money Saving Expert (MSE) comparison site. It provides feedback information for each supplier's quote and, if there is not sufficient feedback to form an opinion, MSE tells you that.

Unlike most other comparison sites, it shows all deals regardless of any relationship MSE might have with the supplier.

I think comparison sites provide a useful service and it is disingenuous to suggest abusing their service by missing them out and going direct to the supplier. Also, many of these sites get a discount from the supplier, so you'll not necessarily be getting it cheaper by going direct.

A final point. If enough people did as suggested, these comparison sites will disappear and we will all be back to the process of slogging through dozens of suppliers entering and re-entering the same information over and over again.
Userlevel 5
Badge +2
May I make a recommendation please, check Trustpilot before switching to ANY utility company, there is a electric company that has 700 reviews - has a cheap introductory rate that many have fallen for but a STAGGERING 78% BAD rating, OVO are always the BEST and number 1 in all the polls and have swept the baord in the USwitch awards last year.

Remember comparison sites work on commission, they are not not there out of the goodness of the hearts, I always recommend use the comparisson sites, do NOT proceed on that site, look for the suppliers own website, then get a quote, that way the comission comes off your bill.

I appreciate this is a bit sneaky but I hadn't shopped around I would never have known just how good OVO are, please remember you get what you pay for.

Hope this helps 🙂
Hello all,
does anybody know is it possible to negotiate renewal price with OVO? They have offered as their renewal rates:
Unit Rate = 15.78p/kWh excludes VAT
Standing charge = 27.40p/day excludes VAT

While one of those comparison sites recommended a provider that charges
Unit Rate = 13.87p/kWh excludes VAT
Standing charge = 17.85p/day excludes VAT
(it is also 12 months fixed plan)

I like how hassle free OVO is so would like them to come closer to those rates, is that possible at all?

Thanks in advance!
Andy
OK, thanks for getting back to me. £300 a year makes a difference. Thank you for providing good service thus far.
Userlevel 3
Yeah I'm really finding it hard to convince myself to stay. I originally joined in 2017, and my fixed rate ends on the 28th September. Currently I pay £1318/year, and the new projection for the 'cheapest' fixed rate is £1628/year. The cheapest I've found using the usual comparison sites is sitting at £1407/year projected, and even some of the big 6 are coming in under the projected renewal from Ovo...

The only thing putting me off from switching supplier, is the absolute nightmare I have when changing supplier, as when I switched to Ovo from Scottish Power, it took 3 Months to complete, as I'm on an IGT, and it just took a stupidly long amount of time! I had the same issue when moving supplier before then too, with an equally absurd length of time to sort out...

So...

Do I stay with Ovo, knowing I can save just shy of £200 over the year, but expect a 3 month wait to sort out the switchover due to being on an IGT and revert back to a 'Dumb' meter which I won't even know if I can still bond a CAD to.

The other option is to switch to Octopus, as both have you have teamed up with Monzo to give a cashback incentive if you switch, and they say that my current meter should work fine with it being made by Secure... but again, is that worth the hassle of transferring due to the IGT...
Userlevel 4
Badge
@ErTnEc Only you can decide whether Ovo (or any other) supplier is right for you.

I stated in a previous post that I was moving to Bulb for precisely the reasons you give: Ovo's tariff.

However, I changed my mind during the cooling off period and decided to stick with them.

For me, it was mainly the annoyance of having a SMET1 first generation smart meter and losing all functionality. So a slow handclap to the originators of that piece of kit for inhibiting customer movement. 😡

All things considered though, to be fair to Ovo, even though they really want us to "get in touch via social media" -- an anathema to me -- they have always come good when I've had to deal with them in the past. Bulb remain an unknown in this regard.
OK - tried that today, and the renewal amount is +£20 (so I am £100 in credit, and the new plan will be £240 per year more). Guess its goodbye OVO...
Userlevel 7
Badge +2
Hey @raddy59 based on the time of year and knowing that we are all going to start using more energy over winter, the new DD will be worked out based on that. Obviously if you are giving monthly readings etc and not using as much as we think you will (based on your previous usage), you can go into your account an adjust your DD amount.

I renewed with OVO 2 weeks ago, and it advised on the renewal page that my DD will go up a bit, but I know actually after winter, I'll be able to reduce it down again once I start using less, therefore balancing out the overall cost over the contract length.

Hope this helps.

Darran
Renewal was based on last years usage - can easily renew at my old rate (£76/month) on any comparison site, numerous suppliers. I think OVO have lost the plot. The rates are up by 30% per fuel on average, plus I will pay 54p/day standing charge (27p per fuel). Bearing in mind fuel prices are forecast to drop i n October.
Userlevel 7
Badge +2
Appreciate prices have gone up this year @raddy59, if you signed up 2 years ago, prices were a lot lower back then, and to deliver a sustainable business to support our customers and services, we won't offer loss leading tariffs.

Might be worth checking out this OVO renewal topic, as others have been discussing this and we've been detailing why we think OVO is worth the little bit extra.
OK - my 2 year plan is due up in a month
I am paying £76/month dual fuel
I am currently in credit to the amount of £87 (will go up higher on DD day in 2 days)
Renewal quote - where the prices are not that different - is £86
The only major difference is en extra 3p on the electric KWh. I used 3000 last year - so £90

What is going on?
Userlevel 5
Your Direct Debit isn't increased when you renew with us, @raddy59. The suggested amount doesn't take any current credit/debit balances into consideration. The unit rates may have changed since your last contract with us.
The unit rates have changed, but not by much. The new dd for renewal is specified in my renewal notice - it is +£10 ! So, if I think this is too much, how do I renew maintaining my old DD amount? If I plug in my annual KWh usage rates into comparison sites it works out more or less what I'm paying currently - £76.
Userlevel 3
Well, unfortunately I'm going to be saying goodbye. Coming to renew now, and compared to what I was quoted 21 days ago, has now shot up by a further £200/year, bringing it to an eye watering £1831.14 a year!!! That brings my monthly costs from £101/month, to £152.60/month! Sorry, but that is absolutely ridiculous!

Not only are the kWh rates not as competitive as many other providers (including the 'big 6'), but the standing charge is one of, if not THE, most expensive one out there at 27.4p/day fir both electricity AND gas!

Bonkers...
OK I switched today.
They say it will take up to 21 days - I have 10 days left on my current plan
What happens at day 11 if the switch hasn't completed?

Reply