Gas & electricity fixed plan, worth cancelling?

TomMu

I have a OVO 1 Year Fixed Loyalty plan: "Contract start date 30 Nov 2023. Contract end date 29 Nov 2024. Exit fee £75.00 if you end your contract before 11th October 2024."
However, on the Martin Lewis Money Show 23 January. It was predicted that prices would be on average 12.5% less, in a years time. The OVO 1 Year Fixed Loyalty plan is for 4% less. On the MoneySavingExpert website, it states for the OVO 1 Year Fixed Loyalty plan: "Unlikely to be a winner". Would it be worth it, cancelling my OVO 1 Year Fixed Loyalty plan and therefore paying the exit fee of.£75.00? That is, would it be likely that I would save money, if I cancel soon? Until the end of the contract, I would have another 10 monthly payments.

double_dutchy

Is this for gas and electric? How much are you paying per Kwh for each fuel on your fix, how much are the standing charges?

Spoonie_Turtle

Also what's your annual usage (in kWh) of gas and of electricity?

Scot_39

Without knowing rates and consumption - impossible to advise - even with -frought with difficulty - quarterly not total demand splits vs quarterly pricing uncertainties.

Do the maths - old and new - if can

But do you really want to come off a fix until rates actually drop as forecast - thats still 2 winter months away - if current fix cheaper (if taken to avoid Jan increases) ?

And if Ovo now do a newer lower price fix - would they charge you to swap to another fix - some suppliers dont - iirc one of big 6 (EOnNext or possibly Scottish Power ?) never even used to charge to switch from fix to SVT.

dealyboy

Hi TomMu ... Welcome to the Forum ...

... It also depends on whether your usage is seasonal. In my case I use about 75% of my energy (electric) during the winter months December thru March so I'm not too troubled by a perhaps 15% fall in prices in April, whereas I'm 'gaining' now. I suspect you are on an electric only tariff too with Ovo as you have mentioned just one £75 penalty.

TomMu

Thanks to all, for your replies.

1. "I suspect you are on an electric only tariff too with Ovo as you have mentioned just one £75 penalty."

I have a gas tariff and an electric tariff with OVO. Sorry, I had thought the total exit charges were £75. "As you’re tied to your contract for 12 months, you’ll face exit charges if you leave early. There’s a £75 exit fee for each fuel – so, if you take out both gas and electricity with OVO, you’ll pay a £150 exit fee if you leave both."

2. It also depends on whether your usage is seasonal. In my case I use about 75% of my energy (electric) during the winter months December thru March so I'm not too troubled by a perhaps 15% fall in prices in April, whereas I'm 'gaining' now.
Yes, my usage is seasonal. For heating, I only use gas, i.e. central heating. Though, I don't use gas for cooking.   

3. "Prices and unit rates: Electricity, Standing charge 56.40p per day, Unit rate 26.93p per kWh. Gas, Standing charge 28.05p per day, Unit rate 6.88p per kWh."

"Future annual consumption: Electricity 1212 kWh. Gas 7259 kWh."

4. "But do you really want to come off a fix until rates actually drop as forecast - thats still 2 winter months away - if current fix cheaper (if taken to avoid Jan increases)?"
I hadn't thought about this, until you pointed it out.

5. "And if Ovo now do a newer lower price fix - would they charge you to swap to another fix - some suppliers dont - iirc one of big 6 (EOnNext?) never even used to charge to switch from fix to SVT."
As far as I can tell, I don't think so. Some of the terms and conditions for the OVO 1 Year Fixed Loyalty plan: "6.1 If you change your supplier or plan for electricity or gas, or both, before the Fixed End Date, we may apply a termination fee of £75 in respect of each fuel (Early Exit Fee). See clause 10.4 of the Core Terms for more information on when this Early Exit Fee may be charged. 6.2 You agree to pay any such Early Exit Fee and agree to us taking this fee by Direct Debit." "10.4 On some energy plans you may have to pay an exit fee if you cancel your energy plan before the fixed term expires. We’ll always let you know if an exit fee applies and these will be detailed in the terms for the relevant energy plan or in your plan confirmation letter. You won’t have to pay an exit fee if: you cancel your energy plan during your cooling-off period; you cancel your energy plan because you’ve moved house; you complete a switch to another supplier anytime after the earlier of: we give you your statement of renewal; or 49 days before the fixed plan is due to end, (unless you’ve already entered into a contract with us for a new fixed‑term energy plan); you’re leaving us because you don’t agree with changes to your energy plan under section 9.3 ‘Changes that put you at a disadvantage’; you’re on a variable energy plan."