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Are OVO Energy at risk with many energy companies going bust during the energy crisis?

  • 20 September 2021
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Does anyone know if OVO are one of the companies at risk of going bust due to the current gas price crisis affecting the UK?

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Best answer by Tim_OVO 21 September 2021, 14:11

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Ovo are the 3rd largest supplier in the UK. I think we’ll be safe :fingers_crossed_tone1:

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thanks alexs.

 

although latest posted accounts don't look too clever… (2019)

Blastoise186
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I think it’s worth noting that the energy suppliers which are most at risk will probably be the really small ones with under one million customers. Those are the ones I think are less able to get the best rates on the wholesale market and probably haven’t got the financial muscle to build up rainy day reserves. OVO has been going for quite a while now, so should be fine.

With that being said, Ofgem has the Supplier of Last Resort process that can be used in an emergency if a supplier fails. It’s just a shame that SoLR has been working like crazy already this year...

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Tim_OVO
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Updated on 17/03/22 by Jess_OVO

 

Thanks for this question, it’s something a lot of our members may be concerned about and want to take the opportunity to reassure you of OVO Energy’s position.

 

We understand you may have seen a lot in the news about the energy market. We want you to know that OVO Energy is in a stable position and your energy supply is safe. More info on this in our latest blog post here, and our FAQs, here.

 

Our number one focus is on keeping you warm and safe this winter. 

 

In case it’s useful, there’s a related thread on switching from an energy supplier that’s no longer trading here: 

 

 

More recently the rising wholesale gas costs have led to an increase to the price cap, as set by Ofgem.

​​​​​​We know that these price changes can be worrying so have put together some more information and resources to help.

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Cheers Tim

Transparent
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@lukesweeney  - I think the response from HMG yesterday (Kwasi Kwarteng; BEIS) missed the point.

The public are asking “How will we be able to afford our energy bills?”

The Government has answered “There’s no danger of the lights going out over Christmas”.

With respect, Minister, that hasn’t provided the reassurance we’re looking for.

 

I believe there are strategies which the Government and Energy Suppliers could, and should, be doing to de-couple the UK from the wild fluctuations of gas prices caused both by natural circumstances and political brinkmanship.

Even if we can’t achieve much de-coupling by Christmas, I’d be happier if I saw us moving faster in that direction.

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Tim_OVO
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Hi everyone, we’ve now got FAQs posted about this, click here to have a read. 

 

 

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Transparent
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There’s another ‘obvious question’ which could do with being added to the FAQ

My existing contract with OVO is about to end. I want to remain a customer but I don’t want to sign up for a 12-month fixed price contract based on the present high wholesale price of gas. What can I do?

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Jeffus
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There’s another ‘obvious question’ which could do with being added to the FAQ

My existing contract with OVO is about to end. I want to remain a customer but I don’t want to sign up for a 12-month fixed price contract based on the present high wholesale price of gas. What can I do?

 

Perhaps use the wording in the general FAQs

------

What happens if I don’t renew by the time my contract ends?


If you don’t refix, we’ll move you onto our variable rate tariff, Simpler Energy. Because it’s variable, unit prices and standing charges could go up or down depending on what’s happening on the wholesale market.

This means it can work out to be more expensive than fixed price plans. Rest assured, though, we’ll always give you at least 30 days’ notice about price changes, so you can choose to move back onto a fixed tariff.

Transparent
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I think we need something more than that @Jeffus 

HMG’s public announcements over the past week have been referring to the ‘protection’ of the Energy Cap which Ofgem imposes to protect the lower paid households.

I think OVO’s explanation in the FAQ needs to clarify this point.

The answer must indicate whether the Simpler Energy tariff might (temporarily) be cheaper due to it being capped, whereas the present Fixed-price tariffs will reflect the current very high price of gas and electricity.

Without that clarification customers won’t know how the Energy Cap protection applies in practice.

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Jeffus
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I think we need something more than that @Jeffus 

HMG’s public announcements over the past week have been referring to the ‘protection’ of the Energy Cap which [color=#6060b0]Ofgem[/color] imposes to protect the lower paid households.

I think [color=#409040]OVO[/color]’s explanation in the FAQ needs to clarify this point.

The answer must indicate whether the Simpler Energy tariff might (temporarily) be cheaper due to it being capped, whereas the present Fixed-price tariffs will reflect the current very high price of gas and electricity.

Without that clarification customers won’t know how the Energy Cap protection applies in practice.

At the time of writing there are no fixed rate tariffs from any supplier less than the 1st October price cap. 

Be interesting to see when this changes. 

 

Transparent
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Thanks @Jeffus  - and that’s the point which I think needs to come across in the FAQ. Most customers whose existing fixed-rate contract is ending won’t know enough to research this for themselves.

You grabbed my last post here so quickly that I hadn’t even had a chance to force the software to implement the embedded color-tags!

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Jeffus
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Thanks @Jeffus  - and that’s the point which I think needs to come across in the FAQ. Most customers whose existing fixed-rate contract is ending won’t know enough to research this for themselves.

You grabbed my last post here so quickly that I hadn’t even had a chance to force the software to implement the embedded color-tags!

Also interesting to see many suppliers have pulled their variable rate price capped tariffs for new customers. Plus many of the small suppliers have stopped taking any new customers. 

So basically if you are coming to the end of your fixed rate or are with one of the failed suppliers your realistic options may  now be very limited. 

 

Jess_OVO
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A really fair point to raise re: the advice we’d give to those not wanting to fix in to a contract at the present moment, @Transparent.

 

And a really well linked response there, @Jeffus.

 

I’d agree that the advice hasn’t changed in terms of what we’d recommend generally - a variable plan allows the flexibility to switch away or fix in at a later date - which might be preferable given the current market conditions. :slight_smile:

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Jeffus
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@lukesweeney  - I think the response from HMG yesterday (Kwasi Kwarteng; BEIS) missed the point.

The public are asking “How will we be able to afford our energy bills?”

The Government has answered “There’s no danger of the lights going out over Christmas”.

With respect, Minister, that hasn’t provided the reassurance we’re looking for.

 

I believe there are strategies which the Government and Energy Suppliers could, and should, be doing to de-couple the UK from the wild fluctuations of gas prices caused both by natural circumstances and political brinkmanship.

Even if we can’t achieve much de-coupling by Christmas, I’d be happier if I saw us moving faster in that direction.

I don't actually think there is an affordable strategy that has been presented by the government yet though.

I think there will have to be huge cross subsidies between different areas of the country and between rich and poor.

I think we will need dramatic structural changes to apportioning costs in addition to the technology and customer behaviour changes. 

Tim_OVO
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Hi everyone, 

 

In case you didn’t see it, we’ve published a blog post:

 

Why energy is headline news, and what this means

 

Read this here, and post any thoughts, feedback and questions below. 

 

Thanks,
Tim

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Jeffus
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A shame to see another 3 suppliers go

Enstroga, Igloo Energy and Symbio Energy

Blastoise186
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Ouch, that’s not good! And I doubt they’ll be the last either…

On the plus side, at least people won’t have to deal with Symbio’s terribly designed website anymore (because it really is horrible web design) and I guess Ofgem can revoke the two Provisional Orders against both Igloo and Symbio now - there’s no point enforcing one against a dead supplier after all...

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