Advice on the best renewal option for me during these time of high energy prices - which to choose?

That's scary, mine is due to renew towards the end of September, like you I am expecting double perhaps slightly more.

I think I would stay on the variable tariff for now and see what happens in the future 🤔 

We’ve been with OVO 7 years on 1 year fixed contracts, and very happy so far. (Except for initial hounding to get Smart Meter which we resisted in no uncertain terms!) Contract renews next month and purely on cost (we are 78 yr old pensioners with some savings) seriously considering allowing OVO to move us to variable in the hope (?) that by mid-2023 energy chaos will have settled and a clearer picture of future rates/plans emerges. If at that point we want to take out a fixed plan (as OVO says we can) would we be quoted sky-high rates to return? We don’t want to move supplier, nor would we relish being ripped off.  I know the choice is ours alone, but would welcome feedback.

Hi @margiejay 

I don't work for OVO, a few of us post if we think we can help. 

It is a difficult time. 

Unfortunately the latest estimates are that the prices will continue to rise and then not really fall much. There is a graph on here. 

https://www.cornwall-insight.com/press/price-cap-forecasts-for-january-rise-to-over-4200-as-wholesale-prices-surge-again-and-ofgem-revises-cap-methodology/

Of course this is just an industry estimate. 

The price cap is going to be updated every 3 months going forward by Ofgem. 

October

January

April

July

So the October rise is just the start and costs are expected to rise steeply in January. The estimates assume prices stay high into 2024.

Of course none of us can predict the future, including what the next Prime Minister will do etc. 

Fixed rates have been gradually increasing every few days sometimes, so there is little to suggest fixed rates will reduce next year at the moment. 

The October price cap will be announced around the 26th August.

Of course the choice of a smart meter is yours alone, we were wary, but for us it has been great. Being able to see where we spend money has enabled us to make large savings in our heating etc. Based on our experience i would recommend a smart meter. The vast majority of smart meters work without any issues, it is easy to get put off. Anyway just saying as you asked for opinions. 

Hi @margiejay 

To specifically answer the question you asked, no you won’t be penalised for going to the variable and then taking a fixed tariff next year. The market will dictate the prices available at any specific time.

You’ll still be able to access any tariff that OVO is offering if you stay with them. There may be some tariffs that give ‘loyalty’ rates to existing customers of suppliers and I believe you usually have to be with the supplier for at least 6 months, generally, to be able to choose these tariffs.

Hi. VERY new to forums and can’t work out how to reply to individuals, let alone what everything means.  Thanks for taking the time to give me your thoughts. Will certainly remember to ask for a loyalty quote as and when necessary.  

Let us know how things go. 

I am sure it will help others in a similar situation think about what to do

thankyou so much for help