OVO energy today (15 March 2012) announced that it has increased the price of two of its fixed price tariffs by 7.7%. The increase, which comes into effect today, will add £81 to the dual fuel bill for a customer with average energy usage. It will affect all new customers coming to OVO energy as well as a proportion of its existing customers who are coming to the end of their fixed tariff deals.
OVO energy customers on variable rate tariffs will also see an increase from 3 May 2012.
The increase has been caused by a recent surge in wholesale gas prices.
According to TheEnergyShop.com research wholesale gas and electricity prices have increased by 16% and 10% respectively since the beginning of the year driven by the cold weather in Europe in February and by rising oil prices fuelled by tensions over Iran.
What we think:
”The last round of price cuts from the Big 6 have barely been implemented and already we are seeing the first signs that the market could be about to turn. The smaller independent suppliers like OVO Energy are more exposed to wholesale price movements and their price changes are often an early warning indicator of where the market is heading.”
“This is an early warning signal that things could be about to change. It’s worth snapping up a cheap fixed deal at currently discounted prices. They may not last for long.”