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Why have my tariffs increased so much?

  • 25 September 2017
  • 5 replies
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I took out the One Year Fixed contract in mid 2016 and replaced it with the 2 Year Fixed deal in mid 2017.
OVO have just confirmed that my electricity unit rate went from 11.40p/kwh to 14.38p/kwh and gas from 2.46p/kwh to 3.17p/kwh.
These are both more than 25% increases for a loyal customer.
Without quoting Wholesale market forces, can someone justify such large increases?

Thanks
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Best answer by Lucy_OVO 12 October 2017, 15:04

Hey guys - if you’d like to take a look at what wholesale energy prices are and how they affect bills, feel free to check out this OVO answers link: https://www.ovoenergy.com/guides/energy-guides/wholesale-energy-prices.html.

Lucy
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I took out the One Year Fixed contract in mid 2016 and replaced it with the 2 Year Fixed deal in mid 2017.
OVO have just confirmed that my electricity unit rate went from 11.40p/kwh to 14.38p/kwh and gas from 2.46p/kwh to 3.17p/kwh.
These are both more than 25% increases for a loyal customer.
Without quoting Wholesale market forces, can someone justify such large increases?

Thanks


Hey bensoncb,

I won’t go into the nitty gritty but it is essentially that. If the price of gas and electricity increases, so will the cost of buying it.
Lucy
Yes. But are OVO paying more than 25% for Gas And Electric since mid 2016? I doubt it very much. Just look at the tariffs of most of the other suppliers. OVO will lose loyal customers like me if they just think existing customers will just pay what OVO think they can get away with.
Lucy, We're all adults here and will not be embarassed if you go into the nitty gritty.

I've just received the annual episode of flummery , smoke and mirrors disguised as an opportunity to select a New Plan. I was stiffed last year by foolishly assuming that online managment of my account would carry over to the next Plan. It didn't. So please explain how online management is rewarded in the next years offerings. Oh, and your stats really need some work.
Userlevel 5
Badge +2
Hey guys - if you’d like to take a look at what wholesale energy prices are and how they affect bills, feel free to check out this OVO answers link: https://www.ovoenergy.com/guides/energy-guides/wholesale-energy-prices.html.

Lucy
Economy 7.... our one-year fix is just ending.
The renewal price increase is 12% for the day rate, bad enough, but 30% increase for the night rate .
Thirty percent increase!! Ye gods!! And of course this accounts for most of our usage.

Is this something to do with the Govt's ridiculous price cap?

As an aside, a few days ago the two year fix was dearer than the one year, as you'd expect, but today the two year was a bit cheaper. It's a funny old game.

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