OVO sends crucial message to customers ahead of energy bill hike

OVO has reacted to the energy price cap with a message for its customers. OVO, one of the largest suppliers of energy in the country, has reacted to the news a £149 price hike is coming from regulator Ofgem, starting on October 1 this year.

OVO said: "Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. Find out how it works – and how it affects your prices. The price cap changes in October. We’re working through what this means for customers, and we’ll update this page soon."

The price cap doesn’t put a limit on the total cost of your energy. Instead, it limits the amount you pay per unit of gas or unit of electricity – and for your daily standing charge. This means if your home uses more energy, costs can still rise.

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OVO said: "It can be helpful to think of it like filling up a car with petrol. The price per litre stays the same, but the total cost changes, depending on how much you fill up." The standing charge is a cost that’s paid by everyone who has an energy account in the UK – whether their home is using any energy or not.

It’s used to pay for things like the maintenance of pipes, power lines, and meters. OVO said: "Due to rising costs of supplying energy to customers’ homes, the price cap for the standing charge has increased for most homes. However, we’re not passing this price increase on to our customers. You’ll continue to pay your current standing charge price, or less."

If you choose a fixed rate plan your rates will stay the same until the end of your contract. OVO advised: "If you're on a fixed rate plan, there'll be no change to the price you're paying right now. If you'd like to switch to a variable rate plan, just give us a call.

"Just so you know – you might need to pay exit fees if you choose to end your plan early."