News explainer · Updated 19 May 2026

OVO Heat Pump Plus Closed — Best Alternative Heat Pump Tariffs 2026

Last reviewed 19 May 2026 · 6 minute read · For UK heat pump households

On 1 February 2026, OVO Energy closed its Heat Pump Plus tariff to new customers. Existing customers were rolled onto OVO's standard variable rate. Thousands of UK heat pump households suddenly found their running costs rising by 50–60% overnight — and the search volume for "best heat pump tariff after OVO" has been climbing every week since.

We're independent — no installer or supplier affiliations. What follows is the comparison we'd give a friend who'd just been told their old tariff was gone.

Why OVO closed Heat Pump Plus

OVO didn't issue a formal explanation, but trade-press analysis points to three interacting reasons:

1. Tariff was loss-making. The pricing structure (a low-rate window for heat pump consumption) was built around the cheap-gas era of 2018–2020. As wholesale electricity costs stayed elevated post-2022, the maths stopped working.
2. Heat pump customers are higher-than-average electricity users. A household on a heat pump uses 7,000–10,000 kWh/year of electricity vs the Ofgem typical of 2,700 kWh. The economics of subsidising those kWh on a fixed-rate window only work if you've got enough other customers' peak-rate demand to balance.
3. Octopus's Cosy and EDF's Heat Pump Tracker were eating market share. Both products have better economics for the supplier and richer optimisation for the customer. OVO faced the choice of investing heavily to compete, or stepping back. They stepped back.

OVO has separately announced it's continuing to invest in heat pump installation through its Energy Solutions business — just not in dedicated tariffs for owners.

The May 2026 alternatives compared

For a typical UK heat pump household using ~8,000 kWh of electricity per year, here's what the May 2026 market looks like:

*Assumes 8,000 kWh/year electricity for the heat pump + general household use. Your actual figure depends on insulation quality, weather, and how well you schedule consumption. Cap-based comparisons use the Q2 2026 cap of £1,641 typical dual fuel scaled to electricity-only and heat-pump-typical consumption.

Which one should you actually pick?

Pick Cosy Octopus if…

…you can move at least 40% of your heat pump's daily consumption into the three cheap windows (early morning, midday, late evening). That's easier than it sounds — most modern heat pumps support time-of-use scheduling, and your hot water tank can be configured to heat in cheap-window slots. The 14.53p cheap rate is among the cheapest electricity in the UK domestic market. The catch: the peak rate (16:00–19:00 at 51.68p) is brutal if you don't shift away from it. Worth £400–£600/year vs OVO standard for a well-scheduled household.

Pick EDF Heat Pump Tracker if…

…you want a simpler product that just guarantees you'll never pay more than the Ofgem cap, with two windows of cheaper electricity per day. No 51.68p peak. Less optimisation upside than Cosy, but also less downside. Best for households who don't want to micromanage scheduling. EDF also doesn't require you to switch your gas supply (so it works for off-gas heat pump homes too).

Pick British Gas Heat Pump Tariff if…

…you're already deep in the British Gas / Hive ecosystem. The tariff is less aggressive than Cosy or EDF Tracker, but the integration with Hive Active Heating makes scheduling automatic. Worth considering for households who'd find any "advanced" tariff intimidating. Savings vs OVO standard: smaller, but real.

Avoid Octopus Agile if…

…you can't or won't automate your house against half-hourly prices. The negative-price headlines are real — but they're a small fraction of the year. The rest of the time, prices vary in ways that punish unscheduled consumption. Excellent for the right household; expensive for the wrong one.

How to switch (10 minutes, no exit fees)

If you were on OVO Heat Pump Plus, you have no exit fees to leave OVO — the tariff was effectively closed by the supplier, which voids any termination clause. Even if you're now on OVO standard variable, you can switch suppliers freely.

1. Confirm you have a smart meter (SMETS2 ideally). All time-of-use heat pump tariffs require half-hourly export-mode metering. Without one, you'd need to upgrade first — typically free, takes ~2 weeks.
2. Check installer compatibility if you have a smart thermostat or third-party controls. The Cosy and EDF tariffs work with most modern systems, but check Hive, Tado, Nest (where available), Drayton Wiser specifically.
3. Apply via the supplier's site. Octopus, EDF and British Gas all have one-page sign-up flows. Use your MPAN (from your old bill) and DD bank details.
4. Plan your switch date. Most switches complete in 5 working days. There's no service interruption — your meters stay in place, only the billing supplier changes.

Beyond the tariff — other ways to lower heat pump running costs

The tariff change is the single biggest lever, but two others can shave another £100–£300/year:

1. Heat pump scheduling. Most heat pumps run a "weather compensation" curve that ramps flow temperature up when it's colder. If your installer set this aggressively (high flow temperatures), the heat pump runs at lower SCOP. A heat pump tuned to ~45°C flow temperature typically returns SCOP ~3.5; one at 55°C flow temperature drops to ~2.7. Worth asking your installer to revisit the curve. Heat Geek is the gold standard for this conversation.
2. Insulation top-up. Even modest improvements (cavity wall fill, loft to 270mm) reduce kWh demand 10–20% and push the heat pump deeper into its efficient operating range. See our grants guide — most of this is funded if you qualify.

Frequently asked questions

Sources

• OVO Heat Pump Plus closure — Havenwise
• OVO's Heat Pump Plus tariff ending — Renewable Heating Hub
• Cosy Octopus — Octopus Energy
• EDF Heat Pump Tracker — EDF Energy
• British Gas Heat Pump Tariff

Page changelog

• 19 May 2026 — Initial publication. Captures market position three months after OVO Heat Pump Plus closure on 1 Feb 2026. Will refresh quarterly with new tariff data.