OVO Energy Renewal Quote +229% (+£206 p/m)

llewta

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

 

Current Plan (1 Year Fixed) - £90 per month

Electric:

• 17.09p/kWh unit rate
• 21.55p per day standing charge

 

Gas:

• 2.84p/kWh unit rate
• 23.63p per day standing charge

 

Renewal Plan (1 Year Fixed) - £296 per month

 

Electric:

• 43.14p/kWh unit rate
• 48.43p per day standing charge

 

Gas:

• 14.42/kWh unit rate
• 27.52 per day standing charge

 

+229% increase

+206 per month

+£2,472 per year

 

Not only this, but even at £90 per month I was overpaying (I have £650 in credit). This increase is surely too much. 

Can anyone advise please? Am I best just moving onto the variable plan? I’m assuming the price cap is much lower than this renewal offer  

 

Thank you in advance. 

Janie2008

Yes the standard variable will be much cheaper, around 28 pKw for electricity and 7.27 for gas.

QrizB

Welcome to the forum.

llewta said:

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

Yes, that's right. You're currently on a low fix (roughly half the forthcoming capped rate) and your comaparing it to a new fix that's almost double the forthcoming capped rate.

Can anyone advise please? Am I best just moving onto the variable plan? I’m assuming the price cap is much lower than this renewal offer

Ignore the fix and take the variable tariff. Expect to spend something like £200 a month.

If you tell us your estimated annual usage we'll be able to calculate a more accurate figure.

llewta

QrizB said:

Welcome to the forum.

llewta said:

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

Yes, that's right. You're currently on a low fix (roughly half the forthcoming capped rate) and your comaparing it to a new fix that's almost double the forthcoming capped rate.

Can anyone advise please? Am I best just moving onto the variable plan? I’m assuming the price cap is much lower than this renewal offer

Ignore the fix and take the variable tariff. Expect to spend something like £200 a month.

If you tell us your estimated annual usage we'll be able to calculate a more accurate figure.

Thank you for the response. Here’s my annual usage for both Gas and Electric for 2021: 

QrizB

llewta said:

QrizB said:

Welcome to the forum.

llewta said:

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

Yes, that's right. You're currently on a low fix (roughly half the forthcoming capped rate) and your comaparing it to a new fix that's almost double the forthcoming capped rate.

Can anyone advise please? Am I best just moving onto the variable plan? I’m assuming the price cap is much lower than this renewal offer

Ignore the fix and take the variable tariff. Expect to spend something like £200 a month.

If you tell us your estimated annual usage we'll be able to calculate a more accurate figure.

Thank you for the response. Here’s my annual usage for both Gas and Electric for 2021:

Based on your numbers, 2052kWh/yr of electricity and 16390kWh/yr of gas, using national average rates:

• On the current cap: £1280/yr, £106/month
• On the new cap effective from April: £2055/yr, £171/month
• On the fixed rate OVO have offered: £3525/yr, £294/month
  

This makes no allowance for your existing £650 credit. If it's genuine (and not just an artefact of OVO's billing cycle) you will be able to knock £50/month off those prices for the next 12 months, or ask to have it refunded.

llewta

QrizB said:

llewta said:

QrizB said:

Welcome to the forum.

llewta said:

I know prices are on the up, but this surely can’t be right. My price is going from £90 per month for gas and electric to a renewal price of £296 per month.

Yes, that's right. You're currently on a low fix (roughly half the forthcoming capped rate) and your comaparing it to a new fix that's almost double the forthcoming capped rate.

Can anyone advise please? Am I best just moving onto the variable plan? I’m assuming the price cap is much lower than this renewal offer

Ignore the fix and take the variable tariff. Expect to spend something like £200 a month.

If you tell us your estimated annual usage we'll be able to calculate a more accurate figure.

Thank you for the response. Here’s my annual usage for both Gas and Electric for 2021:

Based on your numbers, 2052kWh/yr of electricity and 16390kWh/yr of gas, using national average rates:

• On the current cap: £1280/yr, £106/month
• On the new cap effective from April: £2055/yr, £171/month
• On the fixed rate OVO have offered: £3525/yr, £294/month
  

This makes no allowance for your existing £650 credit. If it's genuine (and not just an artefact of OVO's billing cycle) you will be able to knock £50/month off those prices for the next 12 months, or ask to have it refunded.

Many thanks again for your swift reply - appreciate it. 

I guess I’ll let my current deal expire mid April and flip onto the variable plan then. At least the credit I’ve accumulated can cover even a partial amount of the expected increase. 

    

I still have no idea why OVO think that offering this fixed rate price, which is significantly higher than the upcoming cap, would entice a customer to lock in. It makes no sense at all. 

MWT

llewta said:

   

I still have no idea why OVO think that offering this fixed rate price, which is significantly higher than the upcoming cap, would entice a customer to lock in. It makes no sense at all. 

They don't really have much choice, Ofgem rules require them to offer you the cheapest equivalent tariff to the one you are on, so if you currently have a fixed tariff, they must offer their cheapest fixed tariff to you even if they have no realistic expectation that you will accept it.