An upward move in wholesale commodity costs in April, coupled with a small rise in the cost of supplying energy, has led OVO to announce its first price increase in over 12-months. After five consecutive price drops over the last year, the supplier will today increase its fixed energy tariff offer by 3%. The move will affect new and renewing customers only and will position OVO as the fourth cheapest energy supplier in the UK.
Following the increase, OVO’s price for a dual fuel customer* will be £1028 – over £158 (13%) cheaper than the standard Big Six tariffs. OVO’s renewing customers will still see lower prices, as the supplier remains seven per cent (£80) cheaper against its May 2013 rates. Over 82% of OVO’s customers will be protected against this increase until their 12 month fixed energy contract is up for renewal.
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 reflexive’ 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 is committed to reducing its prices if its costs fall again in the future.
Stephen Fitzpatrick, Founder and MD at OVO commented:
“No company ever likes to announce that they’ve got to put their prices up, especially when we work so hard at OVO to keep them down. But we do need to be consistent and fair about way that we price and that means ensuring prices reflect the natural movement of costs. I think our track record shows that whenever we can lower prices, we do. But unfortunately prices, and the costs of supplying energy can go up as well as down.”
The rise takes effect at 00.01 on Thursday 15th May.
* Price is based on a dual fuel, UK average for a medium user (3200 kWh electricity, 13500 kWh gas) paying by monthly direct debit and are inclusive of VAT.
**OVO’s renewing customers are customers with 12-month fixed rate contracts coming to an end.
This is the first price increase for the supplier for over 12-months. OVO last raised its price on 11th April 2013 by 5.6%.
The five consecutive price drops are as follows:
|Price change date||Average annual cost of medium dual fuel||Direction||Price change|
The price increase is on OVO’s fixed Cheaper, Better and Greener energy plans.
OVO operates using a cost reflexive 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.
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 331,000 customers, created 500 jobs and it’s currently recruiting for 40 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.
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 24/1/2018, 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 22/11/2017, but may go up or down.
3Pay Monthly Savings claims: Saving based on the estimated annual cost of OVO Two year fixed tariff for a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying monthly in advance by direct debit, including online discount. Comparisons made against the average of the Big 6 standard variable tariffs with equivalent features. All rates correct as of 06/2/2018.“The Big 6” are British Gas, Scottish Power, SSE, Npower, E.ON and EDF.
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.
OVO Interest Rewards: Interest Rewards are paid on credit balances of customers paying by monthly Direct Debit. It is calculated at 3% in your first year, 4% in your second year and 5% in your third year (and every year thereafter) if you pay by Direct Debit. Interest Rewards are paid monthly based on the number of days you’re in credit and the amount left in your account after you’ve paid your bill. Full terms apply: https://www.ovoenergy.com/terms
95% of new customers save when switching to OVO: Savings based on the average estimated annual costs for all new OVO customers quoted through the OVO website, compared to their current supplier and tariff. Comparisons taken between 01/05/2016 and 11/10/16. Incl VAT.
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.
uSwitch's Energy Supplier of the Year 2017: OVO energy was voted and awarded 'Energy Supplier of the year' and best for: Overall Customer Satisfaction, Most Likely to be Recommended, Value for Money, Best Deal for You, Customer Service, Billing Services, Energy Efficiency, Meter Services, Online Services, Green Services and Transfer Process. OVO Energy scored a 96% customer satisfaction score.
* EV - Everywhere, full terms and conditions: https://www.ovoenergy.com/ev-everywhere/terms
* OVO SolarStore (Beta), full terms and conditions: https://www.ovoenergy.com/ovo-solar-store/terms