Leading independent energy company OVO Energy today announced that it has increased its two dual fuel fixed tariff prices by an average of 7.7%*, for new customers and existing OVO customers that are due to renew.
Existing customers already in a fixed contract will not be affected by the changes as their prices have been confirmed for a 12 month period.
The increase, effective from 15 March 2012, means an average UK household will now pay £1139.85* per year on OVO’s New Energy dual fuel tariff, against an average of £1160* for comparable tariffs with the “Big Six” providers.
For electricity-only customers, New Energy fixed tariff prices have increased by an average of 3%*.
OVO has also confirmed that it will be increasing its prices for variable customers by an average of 6.2%* on its two dual fuel tariffs, effective from 3 May 2012. This price change will affect approximately 10,000 of OVO’s 90,000-plus customers and all of them will receive information about their options in the next couple of weeks.
“We work hard to make sure that our prices are as low as possible and we pass on savings whenever we can. We were the first energy company to do so this winter, cutting our two dual fuel fixed tariffs by 5%. We delayed the need for an increase for our variable rate customers for all of this winter."
“At OVO Energy we buy our energy a year in advance and due to recent sustained increases in wholesale prices, our prices now need to go up. Our New Energy dual fuel fixed rate tariff is still cheaper and simpler than an average of those offered by the “Big Six”.
OVO does not currently offer a variable tariff to new customers.
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* Figures are as of 12 March 2012 based on a medium user in a typical household using 16,500 kWh of gas and 3,300 kWh of electricity, representing an increase of £80.90 and 7.6% per year on OVO’s New Energy dual fuel fixed tariff current price and an increase of £85.96 and 7.8% per year on the Green Energy fixed tariff current price. http://www.ofgem.gov.uk/Media/FactSheets/Documents1/domestic%20energy%20consump%20fig%20FS.pdf.
A fixed tariff guarantees the price customers pay per unit of energy for a specified period of time. Signing up to a variable rate means the price customers pay per unit may fluctuate.