Solved

Moving house during the current energy crisis - Is it best to stay on a variable plan or switch supplier?

  • 30 December 2021
  • 5 replies
  • 114 views

Hi all,

Hoping someone has some advice but having been a happy OVO customer for 5 years I’m moving house and facing the prospect of coming off my fixed rate tarif (which I can’t take with me) and signing up again as a new OVO customer on a new plan. Looks like my bills will be going up from £95 to £350 a month (!!) which seems very harsh and rather unfair given my loyalty to OVO over the years. OVO have told me there’s nothing they can do.

Am I better off looking for a new supplier?

Im currently paying ELECTRICITY at 19p and GAS at 4p per kwh

Thanks

icon

Best answer by maxivory 30 December 2021, 17:21

View original

5 replies

Userlevel 7
Badge +3

Hey there @maxivory !

Thanks for asking about this one. Unfortunately, the energy market is in a very bad state right now, so it’s unlikely that you’d find a better fixed rate deal anywhere else at the moment. The most likely reason for the difference is down to the surge in costs over the last year which is having to be passed on. Almost all of this is beyond the control of any supplier, so you’ll face the same issue no matter where you go.

There is a workaround at the moment, but it’s not guaranteed to be any cheaper for very long. OVO’s variable rate tariff Simpler Energy is in scope of the Ofgem Default Tariff Cap, meaning that it cannot be raised to anything above the current cap - but fixed rate deals are out of scope of this rule. You might be better off to temporarily ride the storm on that tariff and see where things go from there. But be careful, the Default Tariff Cap is being reviewed soon, so any potential savings might be rapidly eroded. In the short-term though, it might not be anywhere near as expensive as that quote you had.

There’s also one other thing I’d like to mention. OVO has retired the OVO Interest Reward for new members and it’s only available to existing members. Since moving house means setting up a new account, you’ll no longer be eligible for this perk but you can keep making use of it until your existing account is closed.

If upon moving in, the supplier is already OVO, you can simply open an account and ask to go onto Simpler Energy if the other tariffs aren’t to your liking. Alternatively, you can set up a temporary account with the existing supplier and then immediately switch to OVO on the Simpler Energy tariff if you wish.

Hope this helps.

Userlevel 6
Badge

Hi all,

Hoping someone has some advice but having been a happy OVO customer for 5 years I’m moving house and facing the prospect of coming off my fixed rate tarif (which I can’t take with me) and signing up again as a new OVO customer on a new plan. Looks like my bills will be going up from £95 to £350 a month (!!) which seems very harsh and rather unfair given my loyalty to OVO over the years. OVO have told me there’s nothing they can do.

Am I better off looking for a new supplier?

Im currently paying ELECTRICITY at 19p and GAS at 4p per kwh

Thanks

For my postcode OVO have been dramatically more expensive at times on  their quotes than other suppliers. 

Yesterday ovo quoted 61.96p a unit for a fixed rate plan for electricity. Scottish power are quoting 29.29p today. 

I would definitely shop around and also check every day what ovo are offering as the swings on ovo quotes have been dramatic day by day for my postcode. I have been staggered.

I do wonder is some companies are able to cope much better at the moment. Scottish Power own their own wind farms which generate 100% of the electricity for their green tarrif according to their website. OVO don't have this generation advantage. 

If upon moving in, the supplier is already OVO, you can simply open an account and ask to go onto Simpler Energy if the other tariffs aren’t to your liking. Alternatively, you can set up a temporary account with the existing supplier and then immediately switch to OVO on the Simpler Energy tariff if you wish.

 

 

Hi, thanks for the full reply - that is helpful, though does confirm my fears about the state of the market. I guess for now I may just put my chips on the default tariff and hope for the best. I’ll try and find out who the existing supplier is at the new property and then take it from there..  will also research the price of solar panels and stock up on candles ;-)

For my postcode OVO have been dramatically more expensive at times on  their quotes than other suppliers. 

Yesterday ovo quoted 61.96p a unit for a fixed rate plan for electricity. Scottish power are quoting 29.29p today. 

I would definitely shop around and also check every day what ovo are offering as the swings on ovo quotes have been dramatic day by day for my postcode. I have been staggered.

I do wonder is some companies are able to cope much better at the moment. Scottish Power own their own wind farms which generate 100% of the electricity for their green tarrif according to their website. OVO don't have this generation advantage. 

 

Thanks @Jeffus I guess self-sufficiency in energy must ultiimately be the solution to all this volatility. Personally I’d love to think they will just renationalise things at some point, as I’m pretty certain a lot of consumers have no real interest in spending their days on earth ‘shopping around’ for a product that is such a basic need and which is ultimately the same whichever provider you use. It’s no fun trying to figure out all the deals, tariffs and variables - I can’t imagine how older/vulnerable people fare with all this complexity. As we’ve seen with dozens of smaller energy firms going under, when things get tough there is no genuine competition in the market and in the end everyone is reliant on the govt as the provider of last resort and the regulator to make sense of it all.

Anyway - rant over!

Userlevel 7
Badge +3

Yeah, we’ve seen around 20 suppliers collapse in recent months. Long story short:

  • Throughout 2021: 27 suppliers have exited the market
  • Of which 25 of those have exited the market between August 2021 and December 2021
  • This is basically the most supplier exits in a single year that I can find from Ofgem records.

Sources: Ofgem Master Publications Library and Ofgem Recent Supplier Exits list

Reply