Ovo - worth fixing?

TraceyJ_2

I’m trying to work out if my mum should fix with Ovo (one and two year deals are the same at £141 per month). These are some of the figures I’ve been trying to work through tonight (the important ones I think). 

Would someone who has more of an idea than me be able to give me a view please? I put her on this fix (possibly not a good move) but she has 14 days to change her mind and she’s already worrying about the increase showing on her smart meter 😕 Realise it will show a hike in April even if she goes back to the price cap. 

Thanks so much. My brain is hurting! 

jimexbox

I'm afraid it's all a gamble. The fix looks v. high to my eon 2yr fix from last week , but.... It may look cheap in hindsight if oil and gas from Russia are sanctioned, which is on the cards.

No easy decisions I'm afraid. 

QrizB

TraceyJ_2 said:

I’m trying to work out if my mum should fix with Ovo (one and two year deals are the same at £141 per month). These are some of the figures I’ve been trying to work through tonight (the important ones I think).

Would someone who has more of an idea than me be able to give me a view please? I put her on this fix (possibly not a good move) but she has 14 days to change her mind and she’s already worrying about the increase showing on her smart meter 😕 Realise it will show a hike in April even if she goes back to the price cap. 

Thanks so much. My brain is hurting! 

Her gas rate is 55% higher than the April cap, and the electricity rate is 35% higher.

Overall, the tariff is equivalent to £2770/yr for Ofgem's benchmark consumer, an increase of 40% on the April cap.

Personally, I'd say "no".

[Deleted User]

QrizB said:

TraceyJ_2 said:

I’m trying to work out if my mum should fix with Ovo (one and two year deals are the same at £141 per month). These are some of the figures I’ve been trying to work through tonight (the important ones I think).

Would someone who has more of an idea than me be able to give me a view please? I put her on this fix (possibly not a good move) but she has 14 days to change her mind and she’s already worrying about the increase showing on her smart meter 😕 Realise it will show a hike in April even if she goes back to the price cap. 

Thanks so much. My brain is hurting! 

Her gas rate is 55% higher than the April cap, and the electricity rate is 35% higher.

Overall, the tariff is equivalent to £2770/yr for Ofgem's benchmark consumer, an increase of 40% on the April cap.

Personally, I'd say "no".

I am not sure that anyone should be giving advice in these difficult and uncertain times but, for what it is worth, I agree that fixes should be looked at against the forthcoming Ofgem Cap. Consumers can then calculate by how much the Cap would have to rise to match the fixed prices. Armed with this information, it then becomes a personal decision.

That said, rather than just prices, we should all be worried about energy security. If Russia decides to play ‘hardball’ and restrict gas supplies to Germany et al, then UK gas imports will drop and prices rise even further.  Sadly, as happens in all democracies with short term parliaments - politicians struggle to think further than the next Election. This is why we have little in the way of gas storage and no fallback energy security plan. Politicians spouting nonsense about more renewables is a non answer to the present ongoing crisis, and it doesn’t address how people will be able to afford the cost of modifying their homes to make use of these renewables.

TraceyJ_2

Thanks so much for taking the time to reply. It was your middle paragraph I just couldn’t get to last night. This has helped clarify my thoughts today. I don’t normally struggle but just needed some help this time as life is a bit crazy! Thanks again.