My fixed tariff is ending and I don't know what to do

Nelumbo

Currently with OVO energy, who I have not been happy with, I was switched from SSE without a choice who were problem free and its been stress since.
OVO bills are too confusing, I could not get my head around it and they were completely useless in helping me, they also did not allow me to continue with my quarterly billing which I always had with SSE and prefer as I would rather pay for my actual usage. I have been stung in the past with extra energy (now bust I believe) who were wrongly taking hundreds from me so I do not want to pay another energy company by direct debit again.
I do not trust OVO at all and now my fixed plan is ending I want to switch

I do not know what to do as I do not want to move onto another fixed plan if the prices are going to fall, but I also do not want to go on to the standard tariff with the uncertainty either.

Can anyone please advise? 

TimSynths

This is what Martin thinks-

Energy bills will fall by an average 7% from 1 October 2023, after Ofgem today announced a new lower level for the Energy Price Cap.

The Cap will drop to £1,923 a year for a dual-fuel household paying by direct debit based on typical use, affecting all those on standard variable tariffs (essentially everyone not currently on a fix).

We’ve quickly updated our ‘What will I pay from October?’ calculator with the new rates, so you can see how your bill will change (there is no actual cap on prices, instead there are regional caps on the maximum standing charges and unit rates).

While this will be a relief for many, most will still be paying more for their energy than last winter when you factor in the £400 energy bill support we all got from the Government. So far, no additional support has been announced for this winter – something Martin and MSE are campaigning on.

What will happen to prices in the future?

Sadly, the lower prices aren’t guaranteed to last that long, as each Price Cap is only in effect for three months (see Energy Cap FAQs for how it works).

The current predictions are that after the October fall, it’ll rise by 6% in January 2024 (to £2,033/year for a typical household), drop 3% in April (to a typical £1,964/year) and fall 2% in July (to £1,917) – though the further out you go, the more it is crystal-ball gazing. If the predictions are right, it'll still leave people paying close to double what they did before the energy crisis hit in autumn 2021.

Should you fix your energy?

The one bright spark in the energy market in recent weeks has been the return of a handful of tariffs that have undercut the current Price Cap.

Based on current Price Cap predictions, we reckon it's worth considering a fixed deal if it's priced under the current July Price Cap, especially if you value certainty about what you'll pay. But it's a complex decision, so see Stick, switch or fix your energy tariff for a rundown of all the switching options.

Most of the deals aren’t available on comparison sites, including our Cheap Energy Club, but the situation is changing fast, and we’ll let you know when you’re able to do a comparison via Cheap Energy Club again.

More key energy help

Struggling to pay? Even with the Price Cap dropping, prices are still likely to be unaffordable for many. Check our Struggling to pay – energy help guide to ensure you're getting all the help you're entitled to.

Should you fix? calculator. If you’ve been offered a fixed deal, you can use our ‘Should you fix your energy?’ calculator for our best guess on whether it’s worth it, based on current predictions.

Try to cut your energy usage. There are lots of ways to reduce what you use. See Energy Saving Tool, the Energy mythbusters guide for less clear-cut issues, and our Heat the human guide.

Thanks,

The MSE Cheap Energy Club team

MattMattMattUK

Nelumbo said:

Currently with OVO energy, who I have not been happy with, I was switched from SSE without a choice who were problem free and its been stress since.
OVO bills are too confusing, I could not get my head around it and they were completely useless in helping me, they also did not allow me to continue with my quarterly billing which I always had with SSE and prefer as I would rather pay for my actual usage. I have been stung in the past with extra energy (now bust I believe) who were wrongly taking hundreds from me so I do not want to pay another energy company by direct debit again.
I do not trust OVO at all and now my fixed plan is ending I want to switch

You are paying around 11% more foe your energy by not paying on Direct Debit so that is not sensible. You could pay whole bill monthly/variable Direct Debit, you will be charged for what you used, with higher bills in winter. Energy is a highly regulated industry, you are not being conned.

Nelumbo said:

I do not know what to do as I do not want to move onto another fixed plan if the prices are going to fall, but I also do not want to go on to the standard tariff with the uncertainty either.

Those are two contradictory positions, you fix or you stay on a variable tariff, they are mutually exclusive. The choice is certainty of unit rates, or variability of unit rates, which make go up or down, pick one based on your personal appetite for risk.

Nelumbo said:

Can anyone please advise? 

Move to a monthly variable Direct Debit option, pay your bill in full every month and out money aside for higher winter bills. If you value certainty then fix, if you are happy you might pay slightly more or less depending on the market then do not fix.

QrizB

Nelumbo said:

I would rather pay for my actual usage.
...
Can anyone please advise? 

Many (not all) energy companies will allow you to pay exactly, monthly, by DD and benefit from the DD discount. EDF do, Octopus do, and I think E.ON Next do. There may be others.

Nelumbo said:

I do not know what to do as I do not want to move onto another fixed plan if the prices are going to fall, but I also do not want to go on to the standard tariff with the uncertainty either.

We can't tell you what to do; you need to decide for yourself whether you want the certainty of a fix or the potential for savings (or for extra costs) on a variable tariff.

No-one is currently expecting huge changes to tariffs this winter. The October cap is slightly lower than the current one, and the January cap is unlikely to be very much different.

Current fixes are at a similar level to the cap.

Scot_39

Switching to a supplier who offers monthly variable direct debit would probably be a good move - as you are currently likely to be paying a 10% premium for paying 3m at standard credit rates by the sounds of it if stay at end of fix and roll over onto SVT.

You can possible also make you and referrer etc £50 for switching.

According to mse article Ovo don't offer MVDD.  That may be out of date / wrong as it now appears to be for BG who used to, but now don't.


As to fixing - you need to decide for yourself.

We have just gone through another upside wabble with the whole Australian lpg spike. 30% on day, then swings +/-10%.
But that then that may now be countered by EU declaring their storage filled 2m ahead of target. 

Everyone is just guessing even short, but certainly medium long term.

If you value certainty fix.

If you want to gamble on falls go SVT - but sort the mvdd vs 3m credit rate 10%.
And potentially even still save a bit £50 @TDCV ? with an Ofgem cap tracker at one supplier.  But when cap goes up in Jan as forecast - that will follow too.

If you really want to ride the live markets - then there are tariffs like Octopus Tracker and agile. 

And for fix fees - some fixes fees are more flexible than others - some fixed fees to release in any scenario - others say could be able to move to another fix or at at least one it was to SVT then switch to another supplier - fee free.

Gather your thoughts, look to see what is available, and choose.


No one can tell you what is right for you.

Gerry1

Scot_39 said:

According to mse article Ovo don't offer MVDD.  That may be out of date / wrong as it now appears to be for BG who used to, but now don't.

I believe MSE is correct: Ovo did stop offering VDD some time ago.  It is offered on the established BG platform but apparently not on the new one.

SAC2334

Switch supplier and move to Octopus on their Tracker tariff..All year it's been approx 40 % cheaper overall  than the standard variable capped rates.
.You do need working smart meters to go on the Tracker but even if you have nt got them now move to Octopus anyway and apply for them.( £50 referral  fees paid too ) ..It's worth it to get away from badly run old school suppliers like SSE (OVO )  stuck in their ways , just to see how a  much better a  modern innovative supplier operates.