New energy tariffs time.

Tinks · 2024-09-27T18:59:44+0100

I keep getting emails from OVO asking me to consider to change to fixed tariffs but me being me doesn’t really understand it.
I am on a smart meter atm so only pay for what I use (plus standing charge of course) and I like that I can see what I use and I am also registered for the power up which gives me money back if I use less electric/ gas at certain times.
At the present I pay £120 pm for a 4 bed house which I think is pretty good but OVO has offered me £99 + Boiler cover which looks a good deal but is it?
What happens if I use more than that each money - am I left with a heavy bill at the end of the year contract?
Anyone with any insight into this can help me?
Thanks

Holy Joe · 2024-09-27T19:32:56+0100

Tinks said:
I keep getting emails from OVO asking me to consider to change to fixed tariffs but me being me doesn’t really understand it.
I am on a smart meter atm so only pay for what I use (plus standing charge of course) and I like that I can see what I use and I am also registered for the power up which gives me money back if I use less electric/ gas at certain times.
At the present I pay £120 pm for a 4 bed house which I think is pretty good but OVO has offered me £99 + Boiler cover which looks a good deal but is it?
What happens if I use more than that each money - am I left with a heavy bill at the end of the year contract?
Anyone with any insight into this can help me?
Thanks

The £99 per month will be estimate, as is the £120 per month you're paying now (assuming it's a constant 120 per month not varying each month). What you need to check are the unit prices for gas and electric and the standing charges for each as well.

The other complication is if your current contract is variable rate - IE the unit prices can change over the course of the year - that can complicate the comparison.

And then if course how do you know OVO is the cheapest provider? You can use a comparison site - I suggest using money saving expert one, to check the whole market rather than just the alternative that has your email address.

As an aside if you pay say £99 per month but use £110 per month then yes you will end the year with a debt - or they may adjust your direct debit after say 6 months. The reverse can occur as well and they end up owing you.

Does that help?

Tinks · 2024-09-27T19:42:26+0100

Holy Joe said:
The £99 per month will be estimate, as is the £120 per month you're paying now (assuming it's a constant 120 per month not varying each month). What you need to check are the unit prices for gas and electric and the standing charges for each as well.

The other complication is if your current contract is variable rate - IE the unit prices can change over the course of the year - that can complicate the comparison.

And then if course how do you know OVO is the cheapest provider? You can use a comparison site - I suggest using money saving expert one, to check the whole market rather than just the alternative that has your email address.

As an aside if you pay say £99 per month but use £110 per month then yes you will end the year with a debt - or they may adjust your direct debit after say 6 months. The reverse can occur as well and they end up owing you.

Does that help?