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KHebb
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June 26, 2023
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Will my fixed tariff be impacted by the Price Cap from 1 July?

  • June 26, 2023
  • 31 replies
  • 3410 views

We fixed a Drive tariff in Sept 2022 for 12 months (when Boris was saying we all just had to ”suck up” the energy prices).  Under that tariff we were paying 63.49 pence per kWh for electricity and 18.72 pence per kWh for gas..  A few days and 300 prime ministers later  the EPG was announced and so our tariff for electricity has been capped at 31.44 pence per kWh for electricity and 9.74 pence per kWh for gas since 1 October 2022.  (Our plan name on the system is  “Drive 20220309 EPG“ )  On 1 July 2023 I would like to know from Ovo what our tariff is going to be please?  We’ve had no communication from Ovo regarding this.  Will it revert to the  63.49 pence per kWh for electricity or not?  If not, what will it be and what are our options? Thank you.  Katharine 

Best answer by Emmanuelle_OVO

Updated on 14/12/23 by Tim_OVO: 

 

Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. You can see the latest information regarding the price cap levels and date changes on the Ofgem site here.

 

The way energy suppliers set prices is impacted by:

 

The price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.

 

The Energy Price Guarantee – provided by the government to help households with energy costs during the energy crisis. It’s a discount on gas and electricity prices and is in addition to the price cap. It applies to both variable and fixed rate plans. If the Energy Price Guarantee (EPG) is above the level of the price cap, it won’t impact prices for anyone who pays monthly. 

 

What this means if you pay monthly for your energy

 

If you're on a variable rate plan, your unit rate and standing charge will change on 1st January, April, July and October, in line with the new price cap. We’ll write to you to let you know if this impacts you personally. Your actual bills will still depend on how much energy your home uses.

 

If you're on a fixed rate plan, the price cap doesn't affect prices for fixed-rate plans. We're keeping your prices as they are for the length of your contract to protect you from any price increases.

 

What this means if you Pay As You Go for your energy

 

All Pay As You Go prices are variable – these will change with the new price cap on 1st January, April, July and October.

 

Now's the time to send a meter reading

 

This will make sure your energy account is up to date. You can submit a meter reading now on your online account or through our app. If you’ve got a smart meter, you don’t need to send a reading. The smart meter will send this for you.

 

Priority Services Register

 

Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition via our Priority Services Register.

 

Support available for customers who may be struggling with their bills

 

Here’s how you can apply for our Customer support package. 

Here’s our guide on debt and energy assistance.

 

Citizens Advice: Visit your local branch, or their websites: for England and Wales and for Scotland. You can speak to an adviser online, in person, or over the phone: 0800 144 8848 (England), 0800 702 2020 (Wales), and 0800 028 1456 (Scotland). 

 

National Debtline: Call 0808 808 4000 or visit their website.

 

Step Change Debt Charity: Call 0800 138 1111 or visit their website.

 

Have any questions about the price cap? See our Price Cap FAQs here.

 

Hey @juliamc, @Firedog and @Jeffus,

 

I asked about this internally:

 

We don’t send Price Decrease letters, there’s no regulatory requirement to do so, however some suppliers have chosen to send marketing material to their customers about the price decrease. The communication we normally send is a Price Increase Notification (PIN) that is sent when there’s a contract change that’s detrimental to the customer.

 

As there’s no detriment with a price decrease, there’s no requirement for a PIN letter. Previously we’d give 28 days notice of price increases, this is only relevant with price INCREASES, however, even in that scenario the 28 days timing is old legislation. We are now only required to communicate within 10 -15 calendar days, given changes to faster switching that allows customers to switch suppliers within 5 days. All prices will be updated on Saturday 1st, including the Tariffs and Pricing section of the website that customers can be pointed to if they would like more information.

31 replies

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T
Newcomer
taxijim33
Newcomer
June 27, 2023

will the unit price go down in july

BPLightlog
Super User
BPLightlogSuper User
Super User
June 27, 2023

This might help
https://www.ovoenergy.com/pricecap

Bring me Sunshine ~ E&E {Solar PV, Battery Storage, Hybrid EV, ASHP and Home Assistant automation}
Emmanuelle_OVO
Retired Moderator
Emmanuelle_OVOSolved
Retired Moderator
June 27, 2023

Updated on 14/12/23 by Tim_OVO: 

 

Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. You can see the latest information regarding the price cap levels and date changes on the Ofgem site here.

 

The way energy suppliers set prices is impacted by:

 

The price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.

 

The Energy Price Guarantee – provided by the government to help households with energy costs during the energy crisis. It’s a discount on gas and electricity prices and is in addition to the price cap. It applies to both variable and fixed rate plans. If the Energy Price Guarantee (EPG) is above the level of the price cap, it won’t impact prices for anyone who pays monthly. 

 

What this means if you pay monthly for your energy

 

If you're on a variable rate plan, your unit rate and standing charge will change on 1st January, April, July and October, in line with the new price cap. We’ll write to you to let you know if this impacts you personally. Your actual bills will still depend on how much energy your home uses.

 

If you're on a fixed rate plan, the price cap doesn't affect prices for fixed-rate plans. We're keeping your prices as they are for the length of your contract to protect you from any price increases.

 

What this means if you Pay As You Go for your energy

 

All Pay As You Go prices are variable – these will change with the new price cap on 1st January, April, July and October.

 

Now's the time to send a meter reading

 

This will make sure your energy account is up to date. You can submit a meter reading now on your online account or through our app. If you’ve got a smart meter, you don’t need to send a reading. The smart meter will send this for you.

 

Priority Services Register

 

Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition via our Priority Services Register.

 

Support available for customers who may be struggling with their bills

 

Here’s how you can apply for our Customer support package. 

Here’s our guide on debt and energy assistance.

 

Citizens Advice: Visit your local branch, or their websites: for England and Wales and for Scotland. You can speak to an adviser online, in person, or over the phone: 0800 144 8848 (England), 0800 702 2020 (Wales), and 0800 028 1456 (Scotland). 

 

National Debtline: Call 0808 808 4000 or visit their website.

 

Step Change Debt Charity: Call 0800 138 1111 or visit their website.

 

Have any questions about the price cap? See our Price Cap FAQs here.

 

Hey @juliamc, @Firedog and @Jeffus,

 

I asked about this internally:

 

We don’t send Price Decrease letters, there’s no regulatory requirement to do so, however some suppliers have chosen to send marketing material to their customers about the price decrease. The communication we normally send is a Price Increase Notification (PIN) that is sent when there’s a contract change that’s detrimental to the customer.

 

As there’s no detriment with a price decrease, there’s no requirement for a PIN letter. Previously we’d give 28 days notice of price increases, this is only relevant with price INCREASES, however, even in that scenario the 28 days timing is old legislation. We are now only required to communicate within 10 -15 calendar days, given changes to faster switching that allows customers to switch suppliers within 5 days. All prices will be updated on Saturday 1st, including the Tariffs and Pricing section of the website that customers can be pointed to if they would like more information.

Renewable Energy? Big Fan.
    E
    Rank 2
    Electric_Twit
    Rank 2
    June 27, 2023

    It is interesting that rather than focus on good customer service Ovo are driven by regulatory requirements!

    How about publishing the new tariffs on the website?

    What is Ovo’s issue with tariff secrecy? Is it so people will not pile in asking for Direct Debit reductions?

      Jeffus
      Rank 20
      Jeffus
      Rank 20
      June 27, 2023

      It is interesting that rather than focus on good customer service Ovo are driven by regulatory requirements!

      How about publishing the new tariffs on the website?

      What is Ovo’s issue with tariff secrecy? Is it so people will not pile in asking for Direct Debit reductions?

      That was my immediate thought as well.

      The focus on regulation was interesting.

      I can't think of a good customer service reason for not giving customers more notice when ofgem released their data on 25th May. It would have helped people thinking about fixed rate plans. 

      I suspect the rates will be very close to the ofgem regional rates on Saturday. 

      Thanks for finding out @Emmanuelle_OVO 

      E
      Rank 2
      Electric_Twit
      Rank 2
      June 27, 2023

      To be blunt, I am quitting Ovo, probably to move to Octopus, once my current SEG contact draws to an end (don’t get me started on the levels of incompetence I experienced setting that up).

      This tariff secrecy malarkey is but a small part of the reason why. Sitting on my huge credit surplus and making me jump backward through hoops to get most of it back is another and, as an EV owner, being able to switch to an EV tariff that does not require me to buy a new charge point to access the benefits.

      Grump over!

      P
      Rank 3
      Padster
      Rank 3
      June 27, 2023

       

      DIRECT DEBIT: What are the average standing charges and unit rates for gas and electricity?

       

      New Energy Price Cap

      rates from 1 July to 30 September 2023

      Current Energy Price Guarantee

      rates from 1 April to 30 June 2023
      Gas 

      Unit rate: 7.51p per kilowatt hour (kWh)

      Standing charge: 29.11p per day

      Unit rate: 10.31p per kilowatt hour (kWh)

      Standing charge: 29.11p per day
      Electricity

      Unit rate: 30.11p per kWh

      Standing charge: 52.97p per day

      Unit rate: 33.21p per kWh

      Standing charge: 52.97p per day

      Rates and standing charges are averages, which vary by region. Assumes payment by direct debit and includes VAT (at 5%). For those who pay each month after getting a bill, it's typically 6 to 8% higher.

      Firedog
      Super User
      FiredogSuper User
      Super User
      June 27, 2023

      Hey @juliamc, @Firedog and @Jeffus,

       

      We don’t send Price Decrease letters, there’s no regulatory requirement to do so,

       

      There may well be no regulatory reason, but there is certainly a contractual one. In the contract I have with OVO, it says quite specifically:
       

      4.4 A variable energy plan means:

      • you pay a variable per unit rate and/or a variable standing charge for the energy you use;

      • this means we might increase or decrease the prices you pay under a variable energy plan. But we’ll always give you notice ...

       

      If customers are not told - with ‘reasonable’ notice - what they’re going to be paying after a tariff change, they have no way of comparing their current arrangement with one a competitor may be offering. This is contrary to the competitive spirit of OFGEM’s instructions, and possibly the letter (I haven’t ploughed through the SLC to check).

       

      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. |
        E
        Rank 2
        Electric_Twit
        Rank 2
        June 27, 2023

        Firedog, well done!

        Well Ovo, please explain your failure to comply with your contractual obligations.

        Jeffus
        Rank 20
        Jeffus
        Rank 20
        June 27, 2023

        Hey @juliamc, @Firedog and @Jeffus,

         

        We don’t send Price Decrease letters, there’s no regulatory requirement to do so,

         

        There may well be no regulatory reason, but there is certainly a contractual one. In the contract I have with OVO, it says quite specifically:
         

        4.4 A variable energy plan means:

        • you pay a variable per unit rate and/or a variable standing charge for the energy you use;

        • this means we might increase or decrease the prices you pay under a variable energy plan. But we’ll always give you notice ...

         

        If customers are not told - with ‘reasonable’ notice - what they’re going to be paying after a tariff change, they have no way of comparing their current arrangement with one a competitor may be offering. This is contrary to the competitive spirit of OFGEM’s instructions, and possibly the letter (I haven’t ploughed through the SLC to check).

         

        Interesting @Firedog 

        In which case, the 10 to 15 days quoted by @Emmanuelle_OVO for a price increase also seems reasonable for a contractual obligation for a price reduction to me. 

        Interesting the contract mentions no actual number of days for either  a price increase or decrease. 

         

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