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Why our prices have gone up

By OVO Energy Wednesday 14 May 2014

Right. There's no easy way to say this. Deep breath...

The streak is over. Our prices are going up.

After five consecutive price drops, it’s safe to say that we've had a good run. Sadly it had to end sometime, and this month our fixed energy tariff will rise by 3%.

We believe in being straight with you. We make a huge fuss whenever our prices go down - and rightly so - so it's only fair that we're equally open about it when they go up.

We review our prices on a monthly basis to reflect our costs, as we feel this gives us the flexibility to give you the best deal we can, all year round. This 'cost reflexive' pricing is at the heart of our commitment to being as fair, transparent and competitive as we possibly can. 

It’s worked wonders for us in over the past year - this is our first price rise in over 12 months - but it also means that when things get a little more expensive for us, they sometimes get a little more expensive for you as well. Wholesale commodity costs have risen during April, and this coupled with a small rise in the cost of producing energy has unfortunately led to the 3% rise. 

But don’t panic. The price rise will only affect new and renewing customers: 82% of our customers will remain unaffected against this increase until their contract is up for renewal (and by that point, we might have put them down again). What’s more our renewing customers will still see lower prices, as despite the increase as our rates remain seven per cent (£80) cheaper than they were in May 2013. 

Bottom line, we're still one of the best value suppliers on the market. Following the increase, our price for a dual fuel customer will be £1028 – that’s over £158 (13%) cheaper than the standard Big Six tariffs. We’re currently the fourth cheapest supplier in the UK, which isn’t too shabby at all. 

So there you have it. It’s not ideal, but it’s not the end of the world. Prices have gone up a little this month, but in the long term they’ve decreased, meaning you’re still getting one of the best deals around.

Most importantly, we’re still one hundred percent committed to lowering prices if costs fall in the future. 

Which reminds us - we better get back to finding you the best deal possible. That energy’s not gonna supply itself. 

Thanks for listening. 

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O​VO​ 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.

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