OVO price changes in 2023

OVO price rises in 2023

OVO’s prices on standard variable tariffs are subject to the Ofgem energy price cap, which limits the amount that suppliers can charge per unit of energy.

The price cap level remained fairly stable for the first couple of years it was in operation because it is based on wider wholesale energy costs: the more it costs suppliers to buy energy, the higher the price cap was likely to be. However, when wholesale prices rocketed in the autumn of 2021, the price cap increased by a huge amount to reflect that. Unfortunately, with an increasing number of customers rolling onto standard tariffs as their fixed deals ended, these rising prices, which topped out at £3,549 in October 2022, were set to put millions under extreme financial pressure.

The government therefore introduced the Energy Price Guarantee, which acted as a second price cap and subsidised bills so that an average use household paying by direct debit would pay £2,500 per year. This has helped households over the worst of the price rises, and with wholesale energy prices now falling, Ofgem has announced that the price cap level will be £2,074 from July 2023. Because this is under the EPG’s £2,500 level, the price cap will come back into force from July, and the EPG will increase to £3,000 and continue to be available in the background if needed again.

Can I do anything about OVO price rises?

If you’re on a standard variable tariff, your prices will rise and fall with the price cap (though it’s not a true cap because the more you use, the more you’ll pay and vice versa). Usually, you’d be able to switch to a fixed deal, but this isn’t possible at the moment due to suppliers pulling the vast majority of fixes from the market. However, it’s possible that, with prices falling, fixes will be back soon. Confirm your details with Uswitch below so you’re ready to act as soon as deals return.

Which energy suppliers have changed their prices in 2023?

You can read about previous price changes from other suppliers below:

• British Gas

• E.ON

• Octopus

• ScottishPower