March 2023- Simpler Energy Variable Plan VS Fixed

Here’s how I see it.

OVO is now offering a fixed rate deal, but it’s completely optional and completely down to your personal choice as to whether you actually want to take the offer up or not. I see no harm in that, especially when it’s NOT being done as a “you MUST take this fix deal wither you like it or not” thing.

If you don’t want it, then simply don’t sign up to it.

I agree with you, @Blastoise186.  What OVO are offering makes sense for them as a business decision.  It’s up to us whether we sign up for it, or wait to see what happens in the wider market.  In the 6 years since I joined them, they have usually been quick to respond to market forces and to do so innovatively and more responsibly than some other suppliers.

I suspect swallowing SSE Hydro caused a good deal of corporate indigestion, so it is not surprising that this fix offer looks on the surface to be slightly risk-averse (for them).

Hey @kopweb and @Geoff Dickson,

It’s an interesting debate, our fixed rate contact is significantly cheaper than the recently announced Ofgem Price Cap and cheaper than variable prices that are currently capped by the Government's Energy price Guarantee.

Given the energy crisis, some customers might feel more secure fixing into a plan as those who fixed in previously were protected from significant price increases. However, it is completely up to the customer as to whether they’d prefer to stay in their current variable plan. 

We’re returning to the market with a new Fixed Tariff!

We’re now offering a new Fixed Tariff which will be a One Year Fixed product and will be available to our existing customers only. The tariff will be priced at approximately £2,275 for the duration of the 12 month contract - based on a customer who’s an average consumption user, and pays by Direct Debit. This is cheaper that the Government's Energy Price Guarantee, which is £2500. Remember -This is based on an average user. If a customer leaves the tariff before the end of their term, exit fees will apply of £75 per fuel.

This Fixed Tariff will be available to Pay Monthly customers only. Unfortunately, at this time we won’t be able to offer this Fixed Tariff to our Pay As You Go (PayG) customers. This is something we’re currently working on and we hope to open up our Fixed Tariffs to PayG customers in the future.

What does PayM stand for @Emmanuelle_OVO ?

Pay Monthly. :)

Sorry @juliamc for that jargon- I’ve updated it 😊

So direct debit and pay on receipt of bill..

So what is the Government’s Price Guarantee of £2,500.00 p.a. When I am paying £500.00/month, do I only pay this for 5 months. That is the way!  

If you’re paying £500 a month, you’re not the average household. This is all clearly explained in countless places, but here are some figures for you to peruse:
  

The magic £2500 is outlined in red; the bottom picture shows the current situation, the top one what takes effect on Saturday. These are the average rates in Great Britain; they are higher in some parts of the country and lower in others as you can see on the pages these figures came from. Suppliers may charge less but not more than the published rates. 

Thank you for that Firedog, still doesn’t make sense to me, it’s along the lines of a “Price Cap “ which also makes no sense when it isn’t a cap, it’s just more claptrap from the idiots in charge.  I am your average household but Ovo kindly pay 5% interest when you are in credit better than any bank or building society, so it makes sense to be in credit. 
Take care. Geoff