OVO Energy and the Default Tariff Cap

2ero

We are two persons in a 3 bed detached house which is exceptionally well insulated, with a new high efficiency boiler and plus solar panels supplying us with electricity. We are on the Standard Variable Rate and OVO admit that the price cap does apply. Currently the cap is about £97 per month (bit under £1200 per year), for a house using a 'Typical Amount of Energy'. OVO want us to pay £147 per month and we are currently in credit. 
When quizzed on this they do not seem to have an explanation and only suggest we transfer to a new fixed tariff for two years. They do not seem to have a simple way of assessing what is 'Typical'. 
They do have a 'compare it with' facility on their website and we are well below average use for a 3 bed house on that but they seek to dismiss that.
Anyone else think OVO are overcharging them? 

MWT

You may be misunderstanding the 'cap'.

It is only a cap on the standing charge and the price per unit, how much you actually pay is determined by the amount of energy you consume each month and the charge per unit of that energy plus the number of days times the standing charge.

So don't waste time looking at 'Typical Amount of Energy' look at exactly how much energy you are using and work out what that should cost based on the tariff you are on...

matelodave

The price cap is not what you think it is. It is NOT a cap on your total bill but on the price of a kwh plus a cap on the price on the price of the standing charge.  If you use more kwh then you pay more and if you use less you pay less. 

You need to check how much energy you actually use - most people use a lot more than they think they do but the only way to actually know how much you use is to read your own meter. Ideally you should do it once a month and then send in the readings or if you've got a smart meter check your bills/ statements to ensure that the reading being used are accurate.

Even the capped amount is a lot more than a decent tariff and OVO are certainly not one of the cheaper suppliers so you need to do a bit of homework to find out what you really use (in kwh) and then put it into a comparison site to see how much it would cost on a cheaper tariff.

For instance your OVO tariff is 6.3p/kw more than mine and 14.5p/day more than mine.
I use 7000kwh a year so your "capped" tariff would cost me around £494 a year more than mine with Symbio which sounds like total and utter madness, but it's obviously up to you.

Stop whinging and do summat about it

2ero

Gordon Bennett I really don't understand the cap and it is clear that consumers really do have to get savvy with this absurd system not to get ripped off. This is the first time I have used a forum and it seems the only way to get instant unbiased advice. Many thanks guys - I'm now going to do summat about it!

Talldave

Energy's like anything else in life - you pay for what you use. There are lots of suppliers with lots of different prices, BUT always think about kWh not £. Once you know how many kWh you use, you can shop around for the best deal. There are loads of forum members here to answer your questions, however silly you think they might be. Enjoy!

DawnCrush

https://www.moneysavingexpert.com/news/2019/09/energy-prices-fall-as-new-price-cap-level-kicks-in---but-most-wi/

binao

matelodave said:

The price cap is not what you think it is. It is NOT a cap on your total bill but on the price of a kwh plus a cap on the price on the price of the standing charge.  If you use more kwh then you pay more and if you use less you pay less. 

You need to check how much energy you actually use - most people use a lot more than they think they do but the only way to actually know how much you use is to read your own meter. Ideally you should do it once a month and then send in the readings or if you've got a smart meter check your bills/ statements to ensure that the reading being used are accurate.

Even the capped amount is a lot more than a decent tariff and OVO are certainly not one of the cheaper suppliers so you need to do a bit of homework to find lout what you really use (in kwh) and then put it into a comparison site to see how much it would cost on a cheaper tariff.

For instance your OVO tariff is 6.3p/kw more than mine and 14.5p/day more than mine.
I use 7000kwh a year so your "capped" tariff would cost me around £494 a year more than mine with Symbio which sounds like total and utter madness, but it's obviously up to you.

Stop whinging and do summat about it

Your Symbio deal looked really good, so I checked out the Symbio Energy feedback thread.

What tariff are you on, are your bills EAC/12  "adjusted estimated monthly in advance?

OP should find your post most helpfull.  Energy  monthly quotes can be misleading.

Take care