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Nic the Hat
Rank 1
April 1, 2022
Solved

Why are standing charges increasing on my variable Simpler Energy plan?

  • April 1, 2022
  • 28 replies
  • 1450 views

OVO have doubbled the daily standing charge, this is noyhing to do with the wholesale price rise, which is why the unit price has risen. 

I have phoned, long story short- one and a half hours, most on hold then cut off.

Cannot email their system is down!!!!!

HOW DO I LEAVE?

Best answer by M.isterW

Updated on 14/09/23 by Abby_OVO

 

Before you go elsewhere check what other companies are charging. You might find that OVO isn't alone in increasing the standing charge. A lot of the increase is the cost of rescuing customers from failed energy companies, a cost that the govt puts onto the energy companies and they put onto us.

 

If you want to be annoyed at someone I'd aim at the govt for failing to ensure energy companies were stable enough to cope with the high gas prices. And previous governments for not investing enough in renewables, which are currently helping to limit the electricity price rises.

 

I have checked, and they are not doing it as much. Unfortunately at the moment it seems impossible to move.

 

It's not impossible to move, it's just probably not cost effective to. The electricity standing charge will have gone up on all variable tariffs from various suppliers. You may find it varies by a few pence, but the majority of the rise is the £68 cost to help cover failed suppliers. Remember that the price cap for average use takes into account unit prices and standing charge so all suppliers will be at or just slightly below this amount.

 

We’ve got more advice and support for members affected by rising unit rates and standing charges on our price cap FAQs

28 replies

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Blastoise186
Super User
Blastoise186Super User
Super User
September 5, 2022

A lot of it comes down to the fact that previous price caps didn’t factor in the true costs, the massive jump in upstream costs and also all the failed suppliers of last year - 30 suppliers collapsed and ultimately the cost of all that comes back to everyone else.

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!
    L
    Newcomer
    lythambear1690
    Newcomer
    September 5, 2022

    A lot of it comes down to the fact that previous price caps didn’t factor in the true costs, the massive jump in upstream costs and also all the failed suppliers of last year - 30 suppliers collapsed and ultimately the cost of all that comes back to everyone else.

    Ok, Thanks anyway

     

    Enzo14
    Newcomer
    Enzo14
    Newcomer
    September 16, 2022

    No company shows how the standing charge is calculated. This means that the price per unit can be manipulated to be competitive and the standing charge adjusted to ensure a good profit. If standing charges were abolished, customers could make better informed choices. Unfortunately, only legislation could achieve this.

    Mike
      M
      Newcomer
      meldrewreborn
      Newcomer
      September 16, 2022

      You can research on the OFGEM website for their methodology in setting the standing charges under the price cap.  The suppliers just pass it on - they only set their own standing charges for the non-variable tariffs they offer.

       

      If you’ve come off a fix recently, then yes sanding charges are substantially up.  You might not think it but you’ve been lucky up till now.

      Eon and EDF customer. Don't think smart meters are worth the expense.
        Emmanuelle_OVO
        Retired Moderator
        Emmanuelle_OVO
        Retired Moderator
        September 20, 2022

         Hey @Enzo14,

         

        Welcome to the OVO online community. 

         

        You can research on the OFGEM website for their methodology in setting the standing charges under the price cap.  The suppliers just pass it on - they only set their own standing charges for the non-variable tariffs they offer.

         

         

        The Price Cap for both standing charge and unit rates for the variable contract are set by OFGEM, the market regulator. They have lots of information about how standing charges are calculated and why they have increased. 

         

        The cap increase this October reflects a number of factors:

        • The wholesale price for gas has increased putting pressure on the market
        • The wholesale price for electricity for delivery this winter has more than tripled over the same time. 
        • When an energy supplier exits the market, these costs are split across the standing charge and unit rate you pay for each unit of energy used. Due to the volatility in the market we have seen a large number of suppliers exit the market.

        We’ve got more advice and support for members affected by rising unit rates and standing charges on our price cap FAQs

        Renewable Energy? Big Fan.
        S
        Rank 1
        SMC_custom
        Rank 1
        October 18, 2022

        I have checked my latest bill (July to October) and I just can’t understand it. My flat runs only on electricity, and there’s a section with my tariff information and the cost for the standard charge and unit. There’s only one price amount for each, which I take is the same rate for any time of the day.

        However, when looking at the usage, there are different amounts calculated for both. From July to September, I’ve being charged a completely different amount per unit, plus 2 different standing charges applicable to different number of days. I know the overall charges were different then, but this information is still different to my tariff costs then.

        Then, from the 1st to 6th of October there’s, again, a different cost per unit from my tariff information, and yet again 2 different standing charges, one applicable to 2 days and another one to 3 days. Not even adding the 5% VAT can I make sense of those prices. 

        Could anyone please be kind enough to explain what is going on?

        Many thanks

        juliamc
        Rank 20
        juliamc
        Rank 20
        October 18, 2022

        Could you post a pic of this please?

          K
          Rank 2
          Katie B B B
          Rank 2
          August 13, 2023

          Hi could anyone tell me why on my smart meter my daily standing charge states 58.910p for electric. But every morning recently I have noticed the meter starting on 76p, when it used to show 58p.  I am on a PAYG tariff.

           

          BPLightlog
          Super User
          BPLightlogSuper User
          Super User
          August 13, 2023

          You are presumably talking about your IHD (in home display) rather than the smart meter itself. The IHD does add on vat and up to date costs as it goes but it may just be that the tariff setting on your IHD is out of sequence with your account.

          Bring me Sunshine ~ E&E {Solar PV, Battery Storage, Hybrid EV, ASHP and Home Assistant automation}
          K
          Rank 2
          Katie B B B
          Rank 2
          August 13, 2023

          @BPLightlog 

          Thank you for your reply.  Sorry yes I meant my IHD. 

          As you can see from the photo it is inclusive of VAT.

           

           

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          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