Ovo now offering a fixed tariff for one year

jem16

Just had an email this morning from Ovo about the change in price due 1st April. I noticed that they were also offering a Fixed Tariff. Not sure that now seems the right time to fix though. This is my parents who obviously use much more gas as they're in their 90s.

Raxiel

Electric is a bit cheaper than the latest cap predictions, that standing charge is a bit of a stinger though. Probably benefit high users more. Gas is a bit more per unit than the prediction, with a slightly lower SC.

I wouldn't go for it myself.

bilbobaggins

I've had a similar offer from OVO in recent days....

That suggests I'd save over £300 over the next year. What I'm doing now is asking in here....
Where's that fellow Martin when I need him?

ariarnia

bilbobaggins said:

I've had a similar offer from OVO in recent days....

That suggests I'd save over £300 over the next year. What I'm doing now is asking in here....
Where's that fellow Martin when I need him?

its one of those it depends on what you think is going to happen questions. the prediction will be based on the rates of the fix compared to your current variable price (or maybe the price from april 1).

the current best thinking from people in the industry is that variable prices will drop over the next 12 months. but they could be wrong. or wrong about by how much.  

its fair to say that variable prices probably wont go up. but that's based on the idea that if they do go up above 2500 for an average user again that the goverment will be pressured into bringing back support to keep them at the level they are now. 

so the question is do you want to fix now and you will save a bit of money over the next three months. BUT risk that prices will drop and over the 9 months after that you would of saved more money over the year staying on the variable? 

or it could be that prices wont drop that much (inflation will get worse or some other disaster will happen) and you will look back and think that fix would of been a great deal?

i doubt theres a lot in it either way for most people. 

silvercar

bilbobaggins said:

Where's that fellow Martin when I need him?

https://www.moneysavingexpert.com/news/2023/03/ovo-fixed-deal-after-months-with-no-deals/

molerat

Current predictions from July are around 28.5p electric and 7.2p gas

Mstty

molerat said:

Current predictions from July are around 28.5p electric and 7.2p gas

changing regularly back up a bit today.

dealyboy

I think there's too much uncertainty in the world for the next 12 months to be taking a punt on a fix.

molerat

Mstty said:

molerat said:

Current predictions from July are around 28.5p electric and 7.2p gas

changing regularly back up a bit today.

Still not a million miles away from the previous £2013 / £2002

averageguy11

dealyboy said:

I think there's too much uncertainty in the world for the next 12 months to be taking a punt on a fix.

Isn’t that uncertainty in the world a reason why a fix might be attractive?

MattMattMattUK

averageguy11 said:

dealyboy said:

I think there's too much uncertainty in the world for the next 12 months to be taking a punt on a fix.

Isn’t that uncertainty in the world a reason why a fix might be attractive?

Some would rather fix than risk prices rising, others would rather not fix so not risking being locked into a more expensive tariff, others might take the risk that if prices do rise on the wholesale side the government would step in and keep the cap at the nominal £2,500 figure with next year likely being an election year. Different people have different appetites for risk and different assessments of potential risk factors.