New Ovo Energy Price Rise (slight rant)

Hintza

My price has risen from a fixed 9.28p fixed for 12 months until March 2013 to currently 10.68p (Var) at the end of the fixed period and now to 11.65p (if I fix) or 11.93p (Var).

That is a minimum increase of 25.5% or 28.5% in 13 months.

Not a happy camper, I think I will remain on the variable just now which will give me some flexibility to move if required. You are no longer the cheapest provider which is disappointing (although to be fair there is not much in it).

Thoughts? Fix or leave it a couple of months?

MillicentBystander

IME Ovo haven't been the cheapest supplier for quite some time (of course, this is only based on average consumption in my region, Yorkshire, so it may be different in other regions and for other usage figures).

dogshome

I'm on fixed rates too, (EDF), but though good to know what your bills be, they are a short term saving with a nasty surprise at the end when you are facing current prices with all those increases you didn't get over your fixed term.

If your deal ended in March, now's the time to visit the Switch sites to see what other fixes are on offer - If it were me I'd be looking for the longest fix available depending on the cost differential to shorter one's

Wywth

Hintza wrote: »

My price has risen from a fixed 9.28p fixed for 12 months until March 2013 to currently 10.68p (Var) at the end of the fixed period and now to 11.65p (if I fix) or 11.93p (Var).

That is a minimum increase of 25.5% or 28.5% in 13 months.

Not a happy camper, I think I will remain on the variable just now which will give me some flexibility to move if required. You are no longer the cheapest provider which is disappointing (although to be fair there is not much in it).

Thoughts? Fix or leave it a couple of months?

You are going onto Ovo's expensive variable rate if you do not agree to go on the new fixed rate tariff with them they offered you.

I suggest you consult a comparison site to see if you can find a better rate elsewhere before making any decisions
http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

andyrpsmith

I'm in the same boat with OVO going from 10.68 ex vat to 11.93

As I use 21000 units per year a small change make a large financial impact.

I am moving to npower 10.868 inc vat August 2014 tariff

MillicentBystander

andyrpsmith wrote: »

I'm in the same boat with OVO going from 10.68 ex vat to 11.93

As I use 21000 units per year a small change make a large financial impact.

I am moving to npower 10.68 inc vat August 2014 tariff

I'm assuming you are fully au fait with the T&Cs that come with that tariff?

andyrpsmith

What aspects do you think I should be worrying about?

MillicentBystander

andyrpsmith wrote: »

What aspects do you think I should be worrying about?

A couple, really*. The £60 exit penalties and the £105 annual discount paid in arrears. You will have to stay with them for a minimum of 12 months to 'qualify' for the price you see on the switching sites. Now I'm sure you will be thinking you are planning to be with them for at least 12 months anyway...and you probably will, of course, but anything can happen during the course of 12 months (price increases etc) but their T&Cs have the effect of making you a captive audience when there are probably broadly comparable deals that don't impose these sort of restrictive T&Cs. For instance the EDF Blue +Price Promise February 2015 tariff is fixed for 6 months longer and imposes no such T&Cs - no exit fees and no annual discount paid in arrears.

* Three, actually.

Guaranteed to be 2% cheaper than npower's Standard charges until 31st August 2014

Current price is way more than 2% cheaper** so they *could* put the tariff rate up considerably and still not break their T&Cs.

** an example - average consumption in Yorkshire area, current price:

npower Aug 2014 £1119
npower standard £1246 :eek:

Current difference approx 10%!

Just something to bear in mind.

andyrpsmith

Thanks. The EDF fixed is 12.75p which is £395 more over a year. I am electric only so the exit fee is £30 and bonus £40. It's all a risk, the main thing for me is the unit price.

MillicentBystander

andyrpsmith wrote: »

Thanks. The EDF fixed is 12.75p which is £395 more over a year. I am electric only so the exit fee is £30 and bonus £40. It's all a risk, the main thing for me is the unit price.

What about standing charges? And what if they actually do put the price up so that it is just 2% less than the standard tariff? Have you actually put your annual usage into one of the switching sites? If not, I would definitely suggest you do so. For peace of mind.

force636

On a slightly different note I only became aware about the price rises upon recieving an email on 16/04/2013.
Ovo recommend changing to a New Energy Fixed tariff which would increase my yearly bill by about £100.

That’s a big enough change to make me check their competitiveness.

I was VERY annoyed to discover the New Energy Fixed tariff had a different lower unit rate up until 11/04/2013 which would have offset £65 of this increase.:mad:


So I get to pay them £65 more because they neglected to inform their existing customers about their intentions. This is a sharp practice and I would not touch Ovo with a barge pole from now on.


I will be switching I suggest everyone else consider what this says about them as a company.