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Firedog
Super User
Super User
December 12, 2022
Solved

Difference between tariffs at Switch and Renewal?

  • December 12, 2022
  • 24 replies
  • 353 views

My fixed-rate contract comes to an end next month, and I’m now in the ‘renewal window.’ I’m trying to find out how much more I’ll have to pay when I’m transferred to a simple variable tariff. The rates I see at two pages at ovoenergy.com are different, by about £60 a year in my case.

Can I be certain that if I follow the advice on the renewal page and “pick this plan today to enjoy these prices” I will in fact be billed at the rates offered?

Here are the screenshots:
  

TIL captured today from Renewal - OVO Energy


 

TIL captured today from Switch your gas and electricity to OVO (ovoenergy.com)

 

Best answer by Jeffus

Updated on 20/10/23 by Abby_OVO

I assume both are in fact variable plans as the exit fee is zero and there is no plan length so the rates could change at any time up to the Energy Price Guarantee rates. 

The only fixed feature being the Energy Price Guarantee?

I expect the rates will change come 1st April which ever option you choose when the EPG changes

The tariff name is different in both examples. We have seen different tariff names with slightly different rates before but i think i would get something in writing personally from ovo if you wanted to confirm, of course with the caveat that the rates could change anyway with either plan up to the EPG 

 

24 replies

BPLightlog
Super User
Super User
December 12, 2022

@Firedog I don’t see a ‘get-out’ if you sign up to a particular rate. I do see both costs are estimated so your only sure fire way of seeing which is best for you is if you work out the detail using the different rates. 
I know that wasn’t your question as such but I would have thought that at the point of your sign up, you would see the rates confirmed?

Bring me Sunshine ~ E&E {Solar PV, Battery Storage, Hybrid EV, ASHP and Home Assistant automation}
juliamc
Rank 20
Rank 20
December 12, 2022

I think I’d fix again if I was you. I went through this dilemma last year (well Jan this year) and it paid off as prices went up and up…

Doesn't the estimate mean it may not reflect your actual usage ?

Jeffus
Rank 20
JeffusSolved
Rank 20
December 12, 2022

Updated on 20/10/23 by Abby_OVO

I assume both are in fact variable plans as the exit fee is zero and there is no plan length so the rates could change at any time up to the Energy Price Guarantee rates. 

The only fixed feature being the Energy Price Guarantee?

I expect the rates will change come 1st April which ever option you choose when the EPG changes

The tariff name is different in both examples. We have seen different tariff names with slightly different rates before but i think i would get something in writing personally from ovo if you wanted to confirm, of course with the caveat that the rates could change anyway with either plan up to the EPG 

 

Firedog
Super User
FiredogSuper UserAuthor
Super User
December 12, 2022

I would have thought that at the point of your sign up, you would see the rates confirmed ...

That would be nice. However, there is no way to ‘sign up’; the page just tells me You don’t need to do anything to choose this plan. You’ll automatically roll onto it if you don’t renew. So there is no ‘renewal’ - just an automatic migration to a different tariff.

That said, Ofgem decrees that suppliers must give consumers at least 30 days advance notice of price rises, or changes in their contract which leave them significantly worse off. My situation is clearly in a grey area. I’ve been working with the figures quoted on the Renewal page for some weeks now, and there’s less than 30 days until I’m automatically migrated, so I could claim that I haven’t been given the mandatory notice of this latest hike. If I were the litigious sort, I might think of complaining.

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
juliamc
Rank 20
Rank 20
December 12, 2022

I assume both are in fact variable plans as the exit fee is zero and there is no plan length so the rates could change at any time up to the Energy Price Guarantee rates. 

The only fixed feature being the Energy Price Guarantee?

Oh yes - sorry - it’s been a long day...

Jeffus
Rank 20
Rank 20
December 12, 2022

I would have thought that at the point of your sign up, you would see the rates confirmed ...

That would be nice. However, there is no way to ‘sign up’; the page just tells me You don’t need to do anything to choose this plan. You’ll automatically roll onto it if you don’t renew. So there is no ‘renewal’ - just an automatic migration to a different tariff.

That said, Ofgem decrees that suppliers must give consumers at least 30 days advance notice of price rises, or changes in their contract which leave them significantly worse off. My situation is clearly in a grey area. I’ve been working with the figures quoted on the Renewal page for some weeks now, and there’s less than 30 days until I’m automatically migrated, so I could claim that I haven’t been given the mandatory notice of this latest hike. If I were the litigious sort, I might think of complaining.

Were we ever able to select the variable tariff on the renewal page? 

Was it just fixed rates? With the default being you rolled onto the variable rate if you did nothing. 

I honestly can't remember.

Does the 30 days start from the 1st day you start your new variable contract rather than now?

When i just looked the tariff name and rates were the same via both links for me but i don't have E7, so it could be ovo have multiple E7 rates setup in their database. 

Jeffus
Rank 20
Rank 20
December 12, 2022

I found my old renewal screenshots. Does look like we have never been able to select the variable rate when coming off a fixed rate. It is just the auto do nothing option. 

Interestingly the section on 30 day notice for changes to the variable rate plan tariff has been removed in the most recent Terms and Conditions

https://www.ovoenergy.com/terms/2022

 

 

Firedog
Super User
FiredogSuper UserAuthor
Super User
December 13, 2022

I think I’d fix again if I was you. 

  
  Chance would be a fine thing! From the same renewal page: During the energy-price uncertainty, we’re not able to offer a fair priced fixed-rate plan. Our variable-rate Simpler Energy plan is the only one available at the moment.
 

Doesn't the estimate mean it may not reflect your actual usage ?


No. I’ve been watching this page for some weeks now. The “Estimated  Yearly Use” (EYU, a rose by any other name ...) is pretty close to my consumption for the last 365 days, but it only updates sporadically - about once a week. Their estimate for my  yearly cost is just about spot on for my day/night usage ratio over the last 365 days. I just used the same figure on the switch page to get comparable results.

It irks me that while urging us to push consumption to the quiet hours, they have seen fit to increase the night rate by 22% since 1 October. It will now be an overnight increase of 138% in my heating cost (in p/kWh inc. VAT, from 9.65 on 30 Sept to 18.86 on 1 Oct and now to 22.98). I’m tempted to nip out and chop down some of their precious trees to feed my fire.  

 

… the section on 30 day notice for changes to the variable rate plan tariff has been removed in the most recent Terms and Conditions

[Sorry, you didn’t, but BP did 😶]

I took my quotation from Ofgem: 30-day-rule-280311.pdf (ofgem.gov.uk) and a search of the site didn’t find anything newer. I don’t think they could wriggle out of that if it came to the crunch. 

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Jeffus
Rank 20
Rank 20
December 13, 2022

I think I’d fix again if I was you. 

  
  Chance would be a fine thing! From the same renewal page: During the energy-price uncertainty, we’re not able to offer a fair priced fixed-rate plan. Our variable-rate Simpler Energy plan is the only one available at the moment.
 

Doesn't the estimate mean it may not reflect your actual usage ?


No. I’ve been watching this page for some weeks now. The “Estimated  Yearly Use” (EYU, a rose by any other name ...) is pretty close to my consumption for the last 365 days, but it only updates sporadically - about once a week. Their estimate for my  yearly cost is just about spot on for my day/night usage ratio over the last 365 days. I just used the same figure on the switch page to get comparable results.

It irks me that while urging us to push consumption to the quiet hours, they have seen fit to increase the night rate by 22% since 1 October. It will now be an overnight increase of 138% in my heating cost (in p/kWh inc. VAT, from 9.65 on 30 Sept to 18.86 on 1 Oct and now to 22.98). I’m tempted to nip out and chop down some of their precious trees to feed my fire.  

 

… the section on 30 day notice for changes to the variable rate plan tariff has been removed in the most recent Terms and Conditions

[Sorry, you didn’t, but BP did 😶]

I took my quotation from Ofgem: 30-day-rule-280311.pdf (ofgem.gov.uk) and a search of the site didn’t find anything newer. I don’t think they could wriggle out of that if it came to the crunch. 

 

Interesting i think the opposite. You aren't on the tariff yet so the 30 days doesn't apply? 

In normal times the rates would go up on 1st Jan.

The renewals page has always had the old variable rate tariff info right up to the switch date to the updated price cap. We went through an example like this with my switch over and the  variable rate when Jess was around. It makes the variable rate tariff info on the Renewal page of rather limited value, particularly with quarterly updates to the variable from 1st Jan in normal times. 

I will see if I can find the thread again.

We didn't get 30 days notice last time for the variable rate. 

Fixed rates would be eye watering expensive at the moment as the wholesale gas price has shot up again, up 60% since October, feeding through to electricity prices. We had a record next day electricity price recently.

The 20% increase in the Energy Price Cap on 1st April from 2500 to 3000 could be better communicated as well... Am not sure how many people are budgeting for this... This was in the Autumn statement. 

 

juliamc
Rank 20
Rank 20
December 13, 2022

That 20% increase ought to be mentioned by us when people are appalled by their raised dd.