Updated on 14/09/23 by Abby_OVO
Hi @Geoff Dickson i don't work for ovo, i am just a customer like you.
As you say the wholesale prices have fallen recently so if they stay low, then the default variable rate will fall on 1st July when the next OFGEM window starts, to below the current fixed rate offer hopefully.
Hopefully also if the wholesale prices stay low we may also see more choice and hopefully even lower fixed prices from suppliers.
So it is a judgement call, fix now for certainty or assume there won't be any more global events that cause prices to spike again and stay on the variable rate for now. What do you think will happen to wholesale prices? Do you think they will spike again?
I don't think there is a wrong answer. We can only all make a reasonable judgement call based on the risks we are willing to take. Many people fixed in October 2021 on what looked like high fixed rate offers but saved a lot as the variable rate shot up. The experts don't always get it right in terms of predicting the future.
I think you are tempted to assume wholesale rates will stay low? Are you going to stay on the variable rate?
As you say the Energy Price Guarantee limits the unit rates of gas and electric so that on average a typical consumer (12000kWh gas, 2900 kWh Electricity) would pay no more that 2500 a year now and 3000 a year from 1st July to 31st March for their energy usage and standing charges including VAT. If you use more energy you will pay more than the 2500 and 3000.
Ofgem set the standing charge maximum rates for the default variable tariff, so you could ask them for a definitive answer about why they have increased them this time.
https://www.ofgem.gov.uk/publications/ofgem-announces-latest-quarterly-price-cap-update
consumeraffairs@ofgem.gov.uk
