Should I switch to Ovo fixed price cap tariff before the October price increase?

High&Dry

I've been with Ovo for four years.

I am being off offered a choice of two 1 year fixed term tariffs and 2 year fix term also. I have duel fuel with them.


Choices are:

1 Year Fixed Loyalty £137 pm.
1 Year Fixed + Greener Electricity £143 pm.

2 Year Fixed £143 pm.

I am a bit worried about the price hike coming in November and wondered whether to move from flexible to fixed monthly tariffs.

What is the consensus when it comes to fixed tariffs? Or should I jump ship to another supplier and look for a better deal.

Any advice given would be greatly appreciated.

 

BarelySentientAI

Have you compared the actual unit prices to what the variable rate until prices will be?

MP1995

There is a price hike October 1st and a potential smaller increase 1st Jan if you believe the predictions.

The best fixes were about 4 weeks ago but that doesn't mean the current ones are not worth getting especially when most households use 60-80% of their energy use over winter.

A one year fix gives you flexibility if prices come down in spring next year.

High&Dry

Thanks for your swift response

For the 1 year fixed term it will be:

Fixed 1 year. £137 per month.

Electricity:

Unit rate: 23.21p/kWh

Standing charge: 41.53p/day

Gas:

Unit rate: 6.26p/kWh

Standing charge: 23.99p/day

Variable. Estimated £135 per month.

Electricity:

Unit rate: 23.52p/kWh

Standing charge: 40.78p/day

Gas:

Unit rate: 5.54p/kWh

Standing charge: 32.02p/day

High&Dry

Lol, I think I just responded to a bot. 

BarelySentientAI

High&Dry said:

Thanks for your swift response

For the 1 year fixed term it will be:

Fixed 1 year. £137 per month.

Electricity:

Unit rate: 23.21p/kWh

Standing charge: 41.53p/day

Gas:

Unit rate: 6.26p/kWh

Standing charge: 23.99p/day

Variable. Estimated £135 per month.

Electricity:

Unit rate: 23.52p/kWh

Standing charge: 40.78p/day

Gas:

Unit rate: 5.54p/kWh

Standing charge: 32.02p/day

So, fixing a 10% higher gas cost just before winter (if that's the Oct variable but I think you haven't looked that far yet)

Also, what price hike in November?  The prices change on 1st October, and we know exactly what to, and then not again until 1 January.

High&Dry

I am not sure I understand your answer. So, do I opt for the fixed price or stick with the flexible tariff?

BarelySentientAI

We're not going to tell you what to do.  We tell you things to think about and you choose.

1.  You're worried about a price hike in November.  There isn't one.  The price changes on 1 October.

2.  You use most of your year's gas in the winter.  If you are comparing prices for a fix, remember this.

3.  We think there might be a little bit of a rise on 1 January, but it's not clear.  We have no idea what the price will do on 1 April or 1 July.

The gas price on the variable you wrote down was 5.54p (but you don't tell us if that is the September price or October price - I think probably September).  You have the option to fix at 6.26p.  You will use most of your gas in the coldest 6 months.

Do you want to fix at paying 6.26p for most of your gas?  Or do you want to pay 5.54p now, then whatever it goes up to in October (probably about 6.5p, but check that for yourself), and then whatever it changes to in January?

Follow the same logic for standing charges and electricity - but each of these is at about the same rate through the year for most people.

If it's different rates on offer - same logic.

High&Dry

Thanks for your reply, I appreciate you are not going to tell me what to do.

Apologies, yes I meant October, November was an error. It relates to the OfGem price cap that is due to increase in October.

OVO are recommending fixed prices to offset rising energy costs.

Variable rate. While the OVO site doesn't specify, I am assuming the price given is the current price and because this is variable is subject to rise or fall in the coming months.

I guess I could take the risk and stick with variable and hope that energy prices don't surpass what is offered in the fixed 1 year deal.

Thanks for your input.

BarelySentientAI

High&Dry said:

Thanks for your reply, I appreciate you are not going to tell me what to do.

Apologies, yes I meant October, November was an error. It relates to the OfGem price cap that is due to increase in October.

OVO are recommending fixed prices to offset rising energy costs.

Variable rate. While the OVO site doesn't specify, I am assuming the price given is the current price and because this is variable is subject to rise or fall in the coming months.

I guess I could take the risk and stick with variable and hope that energy prices don't surpass what is offered in the fixed 1 year deal.

Thanks for your input.

You can look at what the prices will be for your region on 1 October on variable rate.
https://www.ofgem.gov.uk/get-energy-price-cap-standing-charges-and-unit-rates-region

If that's what it will be from Oct-Dec, and then something similar (most probably) from Jan-Mar, that's half your electricity for the year and most of your gas.

Compare that to what it would be on the fix.

High&Dry

Thanks for the Ofgem link. I will look into it.