Ovo energy customers will be pleased to hear that the energy firm is cutting prices by 5% as of 6th January.
UK households on the dual fuel fixed tariff will see a reduction in their bills by 5%, meaning they will now pay £1060.77 per year.
Thatís £55 less than on the previous bill, which will provide some New Year cheer to existing and new customers.
Ovo claim that the ëNew Energyí dual fuel tariff is now the cheapest on the market, with households paying an average of £1,194 for comparable tariffs with the leading six providers.
The wholesale cost of gas has fallen over the last few months as many of the other leading energy firms have failed to reduce their prices in line with wholesale costs.
ìDue to a recent decrease in wholesale costs, we are able to respond and pass on these savings to consumers, thereby giving them a cheaper and simpler alternative to the ìBig Six,î commented Ovo Energyís Managing Director, Stephen Fitzpatrick.
ìJanuary is always a challenging month for everyoneís bank balances and so weíre delighted to do what we can to help make paying for energy a little easier.î
The move follows in the footsteps of rival company, Co-operative Energy, as it announced price cuts of £35 a year on the standard dual fuel tariff. The Co-operative price cut does not come into effect until 1st February, while Ovoís price cut has immediate effect which allows customers to benefit sooner.
However, it is important to note that Ovoís price cut does not benefit all existing customers. Those who are on a variable rate, or current fixed rates that are not up for renewal, might not see the new price cut enforced.
Commenting on the move, Audrey Gallacher, Director of Energy at Consumer Focus, said; ìCustomers will be glad to see that Ovo has reflected falling wholesale costs in the prices they are asked to pay. ì
ìThis is a market fundamental which must be reflected across the sector if wholesale costs continue to fall. The gap between wholesale and retail prices remains a fault line for consumer confidence in the energy market.î
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