OVO's Fixed Plan FAQ

Jasper80

I moved home in June and signed up to OVO's Better Energy Fixed Plan. I'm awaiting an email or notification from OVO on how the Government's EPG will affect my tariff/pricing, but just noticed the following on OVO's EPG FAQ page for the question:

I'm on a fixed plan. Does this (the EPG) apply to me?

" ... If you're currently on a fixed plan where prices for a typical household are over £3,500 per year, we'll automatically move you to our Standard Variable Tariff. This will mean you're on the best rates possible. We'll take care of everything and we'll be in touch over the next few weeks to confirm exactly what this means for you."

I would like the option of staying on the Fixed Plan. My current calculation is that I would pay ~£4000 per year on their guestimate, but would be ~£125 better off on the fixed plan.  I don't know when OVO's FAQ was written, but if anyone knows when to expect an email from OVO regarding fixed plans, that would be useful to know.

Best...

ariarnia

sorry if i'm wrong but i think you misunderstand the paragraph or meaning of typical household maybe?  

what they're saying is if you're on a fixed plan that has higher rates than the cap. and those rates are high enough that even with the equivalent discounts your rates would work out higher than the cap. then they'll move you onto the cap rate. 

i can't see there's any way you could be better off on one of those tariffs than the standard capped rate by definition. 

[Deleted User]

ariarnia said:

i can't see there's any way you could be better off on one of those tariffs than the standard capped rate by definition. 

By having a lower standing charge.

Although I do lean towards your point, £125 cheaper on fixed than SVT seems like a misunderstanding of something (unless the OP can provide further information).  And the reference to the OPs usage being £4000 yet comparing it with a £3500 for a typical user.

ariarnia

that's a hugely lower standing charge. especially given the quoted 4000 annual forecast bill. i just can't see how the maths would work out with that level of usage. 

[Deleted User]

ariarnia said:

that's a hugely lower standing charge. especially given the quoted 4000 annual forecast bill. i just can't see how the maths would work out with that level of usage. 

Completely agree.  In principle you can get a lower cost this way, but I don't think by the amount that the OP suggests.

@Jasper80 do you have the details of which tariff you signed up for?  Price per day and Price per kWh?  And an actual annual usage would be good, but estimated will do (it will be written on your bill)?

Jasper80

My calculations are below.

EPG Tariff (for London)
Elect  2980 x 0.3581 + 365 x 0.3316 =  1118.17
Gas   27201 x 0.1050 + 365 x 0.2849 =  2960.09
                               Total = 4148.26

Fixed Plan Tarrif
Elect  2980 x 0.3995 + 365 x 0.4753 =  1363.99
Gas   27201 x 0.0942 + 365 x 0.2621 =  2658.00
                               Total = 4021.99

Our average usage for Jun, Jul and Aug based on readings was:

 Elect 208 kWh per month
 Gas   298 kWh per month

The annual usage is OVO's guesstimate. I guess they've based it on the previous owners annual usage. I think 18000 for gas would be more realistic for us.

Hopefully I've not made an error in the calculations.  Basically I would like the option of staying on the Fixed tariff

Jasper80

Sorry don't know how too select fixed width font.

My calculations are below.

EPG Tariff for London
Elect  2980 x 0.3581 + 365 x 0.3316 =  1118.17
Gas   27201 x 0.1050 + 365 x 0.2849 =  2960.09
Total = 4148.26

Fixed Plan
Elect  2980 x 0.3995 + 365 x 0.4753 =  1363.99
Gas   27201 x 0.0942 + 365 x 0.2621 =  2658.00
Total = 4021.99
                               
My  average usage for Jun-Aug based on readings was:
 Elect 208 kWh per month
 Gas   298 kWh per month
 

Annual usage is OVO guesstimate, which is really high for Gas. I guess they've based it on the previous owners use. I think 18000 would be more  realistic for us.

Hopefully I've not made an error in the calculations.  Basically I would like the option of staying on the Fixed tariff

Alnat1

I'm pretty sure you will stay on the fixed tariff as you are not an average user. Although your electricity units are average, your gas is quite high.

[Deleted User]

Right, so you've misunderstood how to compare yourself with the £3500 threshold.

Looking at those fixed numbers (39.95p and 9.42p) - your fixed tariff at typical usage will be below the £3500 that OVO talk about and you won't be automatically moved anywhere.

What will probably happen (although I haven't checked the maths directly) is that the 39.95p electric unit rate will get moved down to the EPG rate of 35.81p and the other three bits will be left alone.

[Deleted User]

Might as well do the maths though:

Gas cost (12000*0.0942) = £1130.40
Elec cost (2900*0.3995) = £1158.55
SC (365*0.7374) = £269.15

Total for typical user = £2558.10

That's above the London region EPG cap (by £34) so I expect your electricity unit rate to change as mentioned above.

Jasper80

Many thanks for your clarifications.