After a slight downturn in wholesale commodity prices and a small decrease in forecast network costs for gas , OVO Energy will be decreasing prices by 2.5% today. This is OVO’s 7th price decrease in 13 months, during which time the independent supplier has been (on average) 14% cheaper than the Big Six.
The move will affect new and renewing customers only, on OVO’s 12 month fixed tariffs (Better Energy and Greener Energy). Renewing customers will save around £122 on the price at which they joined OVO this time last year , and new customers will save around £213 against a standard Big Six tariff.
Following the price drop, OVO will be the 2nd cheapest energy supplier in the UK. OVO’s price for a dual fuel customer will now be £973 – around £213 (18%) cheaper than the standard Big Six tariffs.
OVO reviews its prices on a monthly basis and this price change largely reflects movement in the cost of supplying energy to its customers over time. This ‘cost reflective’ pricing sits at the heart of the company’s promise to customers that the deal they are getting from OVO will always be fair, transparent and as competitive as possible.
Jason Sharpe, MD at OVO:
“We work hard at OVO to keep costs down and we are committed to always offering our customers the best price we can. Customers know they’re getting a fair deal with us because our prices reflect the natural movement of costs – both up and down. Sometimes unfortunately costs go up, but when they go down, we’re very quick to respond. We’ve lowered our prices seven times since last October.”
The decrease takes effect at 00.01 on Thursday 6th November.
OVO operates using a cost reflective pricing model meaning the prices it charges directly reflect the natural movement of the cost of supplying energy. This means prices can go up as well as down.
The price decrease is on OVO’s fixed Better and Greener energy plans.
Price comparisons are made using OVO’s cheapest non-Economy 7 dual-fuel tariff at the relevant time (including all available discounts, paying by direct debit in advance and averaged over all available regions) compared to an average of the Big Six’s standard variable dual-fuel tariffs (excluding online discounts, using a variety of payment methods including direct debit and averaged over all available regions). All prices averaged over 52 weeks from 10/11/13 and based on a medium user (3200 kWh electricity, 13500 kWh gas). Inclusive of VAT. Data obtained from EnergyLinx on 03/11/14. The “Big Six” are E.ON, SSE, British Gas, Scottish Power, Npower and EDF.
Headquartered in Bristol, OVO Energy is one of the leading independent suppliers in the UK retail market. Since it entered the market in 2009, it’s grown to over 400,000 customers (or 720,000 accounts) created 600 jobs and is currently recruiting for 150 more.
OVO’s guiding principles are simplicity, transparency and fairness in all of its operations: make the energy industry easier for consumers to understand and make sure prices reflect the actual cost of doing business so customers know they’re getting a good deal.