Ovo standing charge huge 18.5% increase

moonshine

I have been with Ovo for gas for two years now on annual fixed rate deals. For both of those two years the daily standing charge was 21.92p per day, even though the actual gas unit price increased each year.

As the fixed rate deal for this year is about to end, they have sent a new offer, and while the gas unit charge has crept up a little bit as expected, the real shock is the daily standing charge has increased to 25.99p per day - an increase of 18.5% :eek:

I cannot believe that the distribution costs to get the gas to my house have increased by that much in a year and I really get the feeling that Ovo are being underhand and sneaky. Probably working on the basis that most people just look at the headline unit rate and don't necessarily notice the other, larger, increase.

End result, increased profits without looking like they're increasing the prices too much.

I was quite happy with them as a small independent company but I have noticed of late that they are starting to be a bit too much like the 'big boys' and this seems like just another instance of behaving badly :mad:

Nada666

£95 is a bog-standard standing charge so not really a 'shocking' increase. Their previous charge was below average.

Many smaller suppliers do charge higher standing charges and low unit prices - they want the high users not the expensive low users.

moonshine

I'm aware of all that and what other suppliers charge is their perogative. It is the size of the increase that I am shocked about when the previous two years were 18.5% less. I can't see how they can justify that.

Bluebirdman_of_Alcathays

You don't mention how much the unit rate has gone up by. If it's 0, then it would appear to be a very good deal - for most people the SC is by far the smaller portion of their bill.

Perhaps they are now approaching their 250,000 customer base, and know they will finally have to be on a level playing field with the big 6?

http://www.bbc.co.uk/news/business-24741541

moonshine

Bluebirdman_of_Alcathays wrote: »

You don't mention how much the unit rate has gone up by. If it's 0, then it would appear to be a very good deal

sadly it's not 0, I wish

the unit rate has gone up by just under 5%

Ryune

Distributors increase the daily standing charge every April (and publish this if anyone wants to see).

Domestic tariffs don't go up every April and the standing charge to the user includes other elements, so its hard to compare the two.

Nada666

moonshine wrote: »

sadly it's not 0, I wish

the unit rate has gone up by just under 5%

So for average use that's an increase of only just over 6% (depending on actual unit price). Hardly an outrage.

(Say £750 plus £80 now £787 plus £95 for 16,500 kWh).

mattbelper

I support the fact that there has been an amazing rise in standing charges that Ovo have brought in. This year their electricity standing charge has increased by 31.6% from 20.82p to 27.40p per day - that compares with 16.42p per day from eon. As far as I can see such a massive above inflation increase is just a cynical move from the company thinking it has persuaded people it is a fairly priced and friendly small company (always giving the best deal).
Time to switch I think.

Bluebirdman_of_Alcathays

mattbelper wrote: »

I support the fact that there has been an amazing rise in standing charges that Ovo have brought in. This year their electricity standing charge has increased by 31.6% from 20.82p to 27.40p per day - that compares with 16.42p per day from eon. As far as I can see such a massive above inflation increase is just a cynical move from the company thinking it has persuaded people it is a fairly priced and friendly small company (always giving the best deal).
Time to switch I think.

And? For high users they remain excellent value. Inflation has nothing to do with it!

System

Blame OFGEM. They insisted that suppliers do away with tiered tariffs; ie, 'x' tariffs at one rate (high) followed by the rest at a lower rate. The key thing to check is that OVO is right for you. The TCR is a good starter for 10 ( one of OFGEM's better initiatives). OVO is still competitive for me with 2400kWhs/year for electricity and 10400kWhs for gas.

JJ_Egan

As above and i knew what the standing charges would be when i signed the contract .
At the time they still worked out cheapest for me with the standing charges .
Though next year based upon very low summer use i may well look to a no/ low standard charge .