OVO's New Fixed Plan

OldButSane

OVO is my electricity and gas supplier; like most people, I have been on the current variable rate plan that they call Simpler Energy.

Last Friday (14 Apr), OVO sent me an email offering a fixed-rate contract for 12 months.

The fixed plan is cheaper for me than the current variable plan by the following amounts (inc. VAT):

Elec Unit Rate    2.16p/kWh
Elec Standing Charge    0.14p/day
Gas Unit Rate    1.38p/kWh
Gas Standing Charge    0.15p/day

I signed up on Saturday and was switched from Sunday.

Anyone else had this offer?

[Deleted User]

Welcome to forum. You may have jumped onto a fixed tariff too soon as energy prices are expected to fall from Jul onwards. If you read the article below, you have signed up to an average cost of £2250 and from July onwards the Cap is expected to be just over £2000 per year.

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

Larac

I was offered it by OVO and the DD was going to be another £11 a month more than I am currently paying.  I also held off as thought as Dolor has pointed out that the prices were going to drop in the summer.  

Gerry1

Larac said: and

the DD was going to be another £11 a month more than I am currently paying.

That's the wrong comparison to make: the DD is not your bill.

You need to compare the annual costs based on actual meter readings.

debitcardmayhem

OldButSane said:

OVO is my electricity and gas supplier; like most people, I have been on the current variable rate plan that they call Simpler Energy.

Last Friday (14 Apr), OVO sent me an email offering a fixed-rate contract for 12 months.

The fixed plan is cheaper for me than the current variable plan by the following amounts (inc. VAT):

Elec Unit Rate    2.16p/kWh
Elec Standing Charge    0.14p/day
Gas Unit Rate    1.38p/kWh
Gas Standing Charge    0.15p/day

I signed up on Saturday and was switched from Sunday.

Anyone else had this offer?

I had to read that twice to realise that is the net cost, it would have been easier to read if you had new rates and the net saving not the net saving alone. Sorry but my 70+yr eyes  and brain couldn't compute at first glance mea culpa , but I was ready to go for unit rates @ 2.16p and 1.38p where do I sign as i say my bad

Mstty

If you have a 14 day cooling off period I would suggest you consider terminating that fix deal and look at the predictions on prices expected from July-December.

There is a breakdown of the expected prices per kWh below.

aaiiee

How did Cornwall Insight's predictions from a year ago for last winter work out, though? IMHO, it's not irrational to accept a fix now. (I'm with Octopus, so don't have the choice).

[Deleted User]

aaiiee said:

How did Cornwall Insight's predictions from a year ago for last winter work out, though? IMHO, it's not irrational to accept a fix now. (I'm with Octopus, so don't have the choice).

IMHO - it is with £150 exit fees.

Scot_39

Some people believe the Ovo fix is a bad one - because the rates are currently predicted - and that's the key word - predicted - to drop.

Fixes in past - with many of the big 6 - used to include a price premium - against current rates - a penalty hedged against any future inflation.

Some people will wait to try and lock in at or nearer the trough - others want the certianty now.

Same with some mortgages - there will be some who still lock in even at todays highs for the budgetting certainty - others will be content to ride the probably even higher SVR - for months - hoping to lock in at lower rates in future.

It's not right or wrong either way - depending on whether the £ or the certainty wins for you - you will make your own decision.

So it's wrong for people to say the OP made the wrong choice - it may not prove to be the cheapest choice - but that doesn't make it wrong.  Even on a Money Saving Website.

Mstty

@Scot_39 So it's wrong for people to say the OP made the wrong choice - it may not prove to be the cheapest choice - but that doesn't make it wrong. Even on a Money Saving Website.

I can't see where anyone in the replies has said it's wrong. They presented data that perhaps a brand new member of the board would not have known such as previous discussions and predictions.

The words used by regulars in response to the OP here were :- 

"May" have jumped too soon

"Suggest you consider" terminating the fixed deal

[Deleted User]

Logic. If the supplier thought that it was offering a market-leading fixed tariff then it wouldn’t be asking for £150 in exit fees as nobody would want to leave. The truth is that the supplier has to ensure that its losses are covered if people do leave if cheaper tariffs do appear in the next few months.