Fixed rate OVo- Good rate but worth it with exit fees ?

hubb

I have just switched from EDF to OVO as I will save £88 a year and get £30 cashback. This is fixed for a year with £30 exit fees for both G and E.

I know being locked in with a fee isn't that desirable but within a year will prices surely come down so much and outweigh the benefit of this tarrif with OVO ? It's a conundrum and I do have a cooling off period if I want to go back to EDF.

JJ_Egan

Cooling off period is before the actual contract starts .If you are now paying OVO then you are locked in .It shows on your welcome to OVO screen .
Question do you believe that fuel prices will drop well below today's price within the next twelve months .

hubb

I only opted last Wed so not even received anything in the post official yet.

This is the email I recently received.

In the meantime, here’s what will happen next:

1. Your welcome letter arrives
It confirms your contract agreement and what we'll do to set up your account with us, including how to track your transfer online.

2. The transfer begins
After your cool off period ends we'll apply for your supply to transfer to us.

3. Submit your opening readings
A couple of days before we switch your supply we'll ask you for your meter readings. We'll need these to open your account.

4. You're now an Ovo customer
Your transfer is complete! As part of your contract, we work with Cool Earth https://www.ovoenergy.com/coolearth to protect an acre of rainforest on your behalf.

Hoopie1

Probably no worth it, avoid exit fees unless you are saving a fair amount against the best exit fee-free rate given how wholesale prices are moving.

Robin9

hubb wrote: »

I have just switched from EDF to OVO as I will save £88 a year and get £30 cashback. This is fixed for a year with £30 exit fees for both G and E.

I know being locked in with a fee isn't that desirable but within a year will prices surely come down so much and outweigh the benefit of this tarrif with OVO ? It's a conundrum and I do have a cooling off period if I want to go back to EDF.

If you are so sure prices will fall why have you chosen this supplier?

Andy_WSM

hubb wrote: »

but within a year will prices surely come down so much

Falling energy prices?! What is this mythical beast you speak of?

hubb

Andy_WSM wrote: »

Falling energy prices?! What is this mythical beast you speak of?

Which is why I am asking here, because to be locked in for a year, over £100 better off than the current rate, will prices come down enough in that time that will be worth more than £100 ?

Andy_WSM

hubb wrote: »

Which is why I am asking here, because to be locked in for a year, over £100 better off than the current rate, will prices come down enough in that time that will be worth more than £100 ?

That's the gamble I'm afraid. Who knows?!

The Government proudly announced they were cutting green taxes to save the public some hard earned cash - guess what happened to that money? I never saw any of it!

Unlikely they will drop, is my opinion as the energy companies usually find an excuse to put them up before the Winter.

Luxury yachts to buy, Golf games to play. An energy company executives wallet is never bulging enough you know.

JJ_Egan

You can cancel now and probably for the next 14 days .
UK government could possibly force a small reduction but the key is the world wide supply markets .If the state of the world and the gas and oil supply regions in particular was stable and calm the bet could be stable prices .Also gas supply prices are currently at a 4 year low due to a mild winter .

hubb

Probably stick with OVO then. Even for a fixed year it will be cheaper than what I am used to paying with EDF.