Skip to main content
M.isterW
M.isterWBest Answer
Rank 6
September 9, 2022

Updated on 08/01/25 by Abby_OVO

The problem is the way the electricity wholesale price is set, which is outside OVO's control.

 

The price is set each half hour to the price of the last unit required to meet demand. At the moment that last unit is almost always generated by gas, so is expensive. That means every unit of electricity costs the same as a unit of electricity generated by gas and we don't see the saving we should be seeing from the low cost of renewables.

 

The govt could tax the generation companies who are making huge profits from this but they have chosen not to. They could also reform the wholesale electricity market, which they are looking at.

 

1992 4 bed detached house. Solar PV + battery, Zappi EV charger, Mitsubishi Ecodan ASHP and i-life2 fan assisted radiators.... No gas 😊
View in thread

5 replies

Newcomer
meldrewreborn
Newcomer
September 8, 2022

You can ask the same of eon and EDF (nuclear). Generators feed into the grid, it all gets mixed, supplier buy from the grid at inflated prices.

apparently it’s legal!

Eon and EDF customer. Don't think smart meters are worth the expense.
juliamc
Rank 20
juliamc
Rank 20
September 9, 2022

Write to your MP. The new PM has said she’d address this hasn’t she? Now’s the time to put on some pressure. 

juliamc
Rank 20
juliamc
Rank 20
September 9, 2022

Of course it’s complete nonsense that we’re only on 100% renewable 24/7 as everything would lose power when the wind stops blowing… 

M.isterW
Rank 6
M.isterWBest Answer
Rank 6
September 9, 2022

Updated on 08/01/25 by Abby_OVO

The problem is the way the electricity wholesale price is set, which is outside OVO's control.

 

The price is set each half hour to the price of the last unit required to meet demand. At the moment that last unit is almost always generated by gas, so is expensive. That means every unit of electricity costs the same as a unit of electricity generated by gas and we don't see the saving we should be seeing from the low cost of renewables.

 

The govt could tax the generation companies who are making huge profits from this but they have chosen not to. They could also reform the wholesale electricity market, which they are looking at.

 

1992 4 bed detached house. Solar PV + battery, Zappi EV charger, Mitsubishi Ecodan ASHP and i-life2 fan assisted radiators.... No gas 😊
    Blastoise186
    Super User
    Blastoise186Super User
    Super User
    September 9, 2022

    Indeed. The only way to bring a more level playing field would be to split the market so that suppliers like OVO could break off and just buy energy on a market where fossil fuels are banned, leaving anyone who still wants to use them anyway to continue buying on another market where they’re allowed.

    Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
    Terms & ConditionsAccessibility statement

    OVO Energy Ltd, Floor 5, Crescent, Temple Back, Redcliffe, BS1 6EZ, (Company no. 06890795) registered in England and Wales.

    OVO (S) Gas Limited is registered in England and Wales (Company No. 02716495) at Floor 5, Crescent, Temple Back, Redcliffe, BS1 6EZ.

    OVO (S) Gas Limited is part of OVO Group Ltd