Pricing Statement - OVO Energy’s 5.8% variable price decrease
28 January 2015
OVO is today announcing a drop in the price of its Standard Variable Tariff – Simpler – by 5.8% for dual fuel and 10.4% drop for gas.
28 JANUARY 2015: OVO is today announcing a drop in the price of its Standard Variable Tariff – Simpler – by 5.8% (for dual fuel, 10.4% drop for gas) to reflect falling wholesale costs, resulting in an average saving of £65 per year (1). Following the price drop OVO’s price for a dual fuel customer on a Standard Variable Tariff will now be £1,051 (down from £1,116) (2)
OVO’s Standard Variable Rate Tariff, Simpler, has been in the top five cheapest variable rate tariffs for the last 12 months both compared to other independents, but especially compared to the Big Six (3). This price change will mean OVO’s Simpler tariff is 12% cheaper than the average Big Six Standard Variable Rate Tariff (4).
The move will benefit current customers on Simpler (around 14% of OVO’s customers), as well as new customers coming onto the tariff. This will be OVO’s eleventh price drop in 18 months, including most recently a reduction of 5.5% to its Fixed Tariffs earlier this month.
The decrease takes effect at 00.01 on 1 March 2015.
1Compared to our previous Standard Variable rate before this change effective from 1 March 2015.
2£1,051 is the annual cost of OVO’s Simpler tariff for a dual-fuel medium user (3200 kWh electricity, 13,500 kWh gas), including all available discounts and VAT, when averaged over the regions in which that tariff is available. Effective 01/03/15.
3Over the last 12 months, OVO has been in the top five cheapest Variable Standard Tariffs every month. Looking at the 6th of the month, every month for the last 12 months from 19.01.14 – 19.01.15.
4Comparison of average Big6 Standard tariff (paperless where available) with OVO’s Simpler Plan for a standard average UK medium user as defined by Ofgem (3200kWh electricity, 13500kWh gas), valid as of 01/03/2015 according to EnergyLinx at 27/01/2015 – note this doesn’t include the recently publicised cuts from the Big 6.