OVO Energy today – Saturday 21 August - announced that the price of its New Energy and Green Energy fixed tariff has increased.
The move will see the average household’s gas and electricity bill rise from £921 to £945 a year. Yet, compared with the next cheapest fixed standard tariff on the market of £1055*, OVO’s new rate still saves customers a significant amount (£110).
The price change only applies to new customers. Existing fixed deal customers will not be affected.
The new rates reflect movements in wholesale prices over the last number of months. From March this year, the cost of gas has risen from 38p per Therm to 47p per Therm today, with electricity rising from 38p per kilowatt hour (kWh) to 44p per kWh over the same period.
OVO’s standard variable rate for its New Energy and Green Energy plans will also go up, although not until 1 October. At an average price of £955 for the year, the new rate remains competitive with other suppliers’.
Customers coming to the end of their one year fixed contract who decide not to fix again and instead move onto the variable rate - or who delay taking action and therefore automatically slip onto the variable tariff - will still make a saving. Their average bill for the year will drop from £978; a saving of £23.
Only the small number of customers who signed up to the previous variable rate - which was available for a limited period of time last March, allowing customers to take advantage of a drop in wholesale prices - will see their bills go up.
Stephen Fitzpatrick, OVO’s Managing Director, said: “It’s our policy to always offer customers the lowest prices we possibly can. As a business, we have to respond to trends in the wholesale market. But – despite a considerable increase in wholesale costs over the last few months – we’re really pleased to still have the cheapest standard fixed deal on the market.”
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OVO Energy Ltd, registered office 1 Rivergate Temple Quay Bristol, BS1 6ED, company no. 06890795 registered in England and Wales, VAT No. 100119879
Additional terms and conditions
Please see below for full terms and conditions on 33% renewable electricity, 3% interest rewards, exit fees and saving claims.
1Monthly cost - Representative monthly direct debit costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying in advance by direct debit, including online discount. All rates correct as of 23/08/16, but may go up or down.
2Weekly cost - Representative weekly costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas). All rates correct as of 23/08/16, but may go up or down.
3Pay Monthly Savings are based on the average estimated annual costs for new PAYM OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
4Pay As You Go Savings are based on the average estimated annual costs for new PAYG OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
We include almost twice as much renewable electricity as the national average: At least 33% of electricity in all of our tariffs comes from renewable sources. The national average, according to Ofgem as at March 2014 was 16.7%. For more information please visit this page.
33% of your electricity comes from renewable sources: 33% renewable electricity as standard as of 1st April 2015. Renewable electricity is generated from wind, solar, geothermal, wave, tidal, hydro, biomass, landfill gas, sewage treatment plant gas and biogas.
3% interest: Calculated at 3% per year, paid monthly based on number of days in credit and the amount left in your account after you’ve paid your bill. OVO Interest Reward is capped at 12 times the amount of the current direct debit amount and is available to customers paying by advance direct debit. Terms apply: http://www.ovoenergy.com/terms/
95% of new customers save when switching to OVO: Based on all new customer signups between 01/02/2016 and 31/07/2016
94% of surveyed customers would recommend us: OVO conducted a survey of their customers in between 1st January 2016 and 15th April 2016. Out of 15,312 customers who responded, over 94% rated OVO 6+ when asked 'how likely would you be to recommend us to a friend and family, on a scale of 1 to 10.
Britain's top rated energy provider: Britain's top rated energy provider in the Which? 2015 satisfaction survey. Survey conducted in October 2015. Awarded in January 2016.