Ovo Energy cuts its prices by 5%

Funky bulb

Ovo Energy has decided to cut its dual-fuel fixed tariff prices by 5% with immediate effect.

The independent energy company claims the move means the average household will now pay £1,060.77 per year on its New Energy dual-fuel tariff, against an average of £1,194 on comparable tariffs with the 'Big Six' energy providers.

"We're committed to doing everything we can to offer new and existing customers the best possible deal," says Stephen Fitzpatrick, Ovo's managing director. "Due to a recent decrease in wholesale costs, we are able to respond and pass on these savings to consumers, thereby giving them a cheaper and simpler alternative to the Big Six."

Lending hand

Sadly, the good news won't immediately affect Ovo's 70,000 existing customers' bills. They will only see a reduction when they renew their contracts. But new customers will get the savings straight away.

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Tom Lyon, energy expert at uSwitch.com, says: "This is the kind of consumer-friendly move we've come to expect from Ovo. In one fell swoop, it has given cash-strapped consumers a lending hand, become the second-cheapest energy supplier on the market and laid the gauntlet down to the Big Six."

Ovo is now offering the second-cheapest deal on the market based on average use, according to uSwitch.com. It is only beaten by First:Utility, whose average deal price is £1,030, making it £31 cheaper than Ovo's average price.

Ovo's price cut follows last month's announcement from Co-operative Energy that it would be reducing prices by 3% from 1 February. Both firms are reacting to a fall in wholesale gas prices.

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