3 MARCH 2015: Pricing Statement
03 March 2015
5.2% price increase affecting new and renewing customers
3 MARCH 2015: Following an upward shift in wholesale commodity costs, OVO Energy today announced a 5.2% (£48) price increase on its 12-month fixed tariffs (Better Energy and Greener Energy). The move will affect new and renewing customers only and is largely a reflection of a 10% uplift in gas and 6% uplift in power costs caused predominately by political unrest in Ukraine since OVO’s last price drop in January.
Following the pricing change, OVO’s price for a dual fuel customer will now be £968 .
Renewing customers are still expected to save around £73 on the price at which they joined OVO this time last year and new customers will still save around £200 against an average Big Six Standard Variable Tariff today .
OVO reviews its prices on a regular 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.
The company has dropped prices eleven times in 18 months , including most recently a reduction of 5.5% to its Fixed Tariffs in January. This is its second increase during that time.
All new and renewing customers will benefit from no exit fees and 33% renewable energy as standard. OVO has recently scrapped exit fees and increased the amount of renewable energy in its standard tariffs as part of its on-going commitment to delivering the best possible customer experience.
The increase takes effect at 00.01 on 03 March 2015.
For more information please contact:
Shula Smith, Corporate Affairs, OVO Energy – 07863342317 / [email protected]
- OVO operates using a cost reflective pricing model meaning the prices it charges broadly reflect the natural movement of the cost of supplying energy. This means prices can go up as well as down. OVO is always honest and transparent about its price changes and the reasons behind them.
- Today’s price increase is on OVO’s fixed pay-monthly Better and Greener energy plans. OVO’s Standard Variable Tariff (Simpler) will not change at this time. Only around 14% of OVO’S customers are on a Standard Variable Tariff - which is consistently ranked in the top five cheapest Standard Variable Tariffs in the UK - in comparison to 60-80% of Big Six customers .
- 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 Standard Variable Dual-fuel Tariffs (excluding online discounts, using a variety of payment methods including direct debit and averaged over all available regions).
- The “Big Six” are E.ON, SSE, British Gas, Scottish Power, Npower and EDF.
- OVO Energy has more than doubled the amount of renewable electricity* offered to customers as standard on its three core tariffs from 15% to 33% - almost double the UK average**.
* Renewable power is generated from wind, solar, geothermal, wave, tidal, hydro, biomass, landfill gas, sewage treatment plant gas and biogas. OVO does not yet offer ‘additionality’ with this tariff.
**UK average for 2013-2014 was 16.7%. Figures obtained from Department of Energy and Climate Change (DECC)
Headquartered in Bristol, OVO Energy, the 10th fastest growing business in the UK, is one of the leading independent suppliers in the UK energy retail market. OVO was founded in 2009 by Stephen Fitzpatrick who set out to create a better energy company. Since entering the market in 2009, OVO currently has 450,000 customers and created over 800 jobs.
OVO’s guiding principles are simplicity, transparency and fairness in all of its operations: making the energy industry easier for consumers to understand and making sure prices reflect the actual cost of doing business so customers know they’re getting a good deal.
OVO dropped its prices by 5.5% on 15th January on its 12-month fixed tariffs – Better Energy and Greener Energy
£968 is the annual cost of OVO’s Better tarifffor a dual-fuel medium user (3200 kWh electricity, 13,500 kWh gas) paying in advance by direct debit, including all available discounts and VAT, when averaged over the regions in which that tariff is available. Effective 03/03/2015.
Using OVO’s cheapest non-Economy 7 tariff in January 2014 compared to OVO’s cheapest non-Economy 7 tariff on 03/03/2015 following today’s price drop. – this comparison looks at the average medium non-Economy 7 price between 23/12/2013 and 13/02/2014.
OVO “Better” fixed tariff with effect from 03/03/2015 for a non-economy-7, dual-fuel, medium user (3200 kWhs elec. and 13500 kWhs gas) paying monthly in advance by direct debit, including online discount. Comparisons made against the average of the Big 6 standard variable tariffs
- cheaper tariffs may be available. Incl VAT. Actual savings may vary according to your current tariff, OVO tariff options, consumption and location. Savings made over a year. “The Big 6” are British Gas, Scottish Power, SSE, Npower, E.ON and EDF. You will have 14 days to cancel your contract.
OVO has dropped its fixed prices nice times and its variable three times in the past 18-months