- OVO energy today adjusted prices for its New Energy Fixed tariff.
- Electricity prices increased by 5%, gas prices cut by 3%.
- No change to dual fuel prices.
- OVO energy still offering the second cheapest fixed tariff in the market.
OVO energy today (12 August 2011) updated prices for its main tariff New Energy Fixed.
Although electricity prices were increased by 5.5% (£22), the surprise was that gas prices were cut by a corresponding amount (£22 equivalent to 3.2%). This means that the energy bill for the average customer remains unchanged.
The recent fall in oil and wholesale energy prices has afforded nimble suppliers a window of opportunity and take advantage of lower gas prices and OVO energy have been quick to respond.
According to research from the energy price comparison website TheEnergyShop.com, both wholesale gas and electricity prices have fallen by 8% since their recent peaks. This follows a fall of 15% in oil prices over the past 3 months.
The implication is that OVO Energy will stay towards the top of the best buy tables with these prices and will keep the pressure on the Big 6. That has to be good news for consumers.
Another interesting point is that, although OVO energy does not offer a standalone gas tariff, the gas component on its dual fuel tariff is around £96 (15%) cheaper than the standalone gas tariffs of the Big 6 providers. Food for thought?
What we think:
After all the bad news customers have endured from their energy suppliers over the past 2 months, today’s price update from OVO energy will come as welcome development. It will certainly apply pressure to the Big 6 to moderate their prices but it they don’t, customers still have the option of switching to the OVO energy fixed price plan. It is not just a competitive fixed price plan, but has a renewable energy component as well.
Standard Energy Bills Analysis
The prices shown are for the relevant suppliers’ Standard tariff for customers paying by monthly direct debit and based on an average usage profile (16500 kWh gas and 3300 kWh electricity on a standard meter).