Ovo Energy drops prices and tops best buy table

The independent gas and electricity provider now offers the cheapest deal on average across the energy market

Ovo is now offering the cheapest plan on the market

Ovo is now offering the cheapest plan on the market

Update – There is a new cheapest plan

Ovo Energy has cut the price of its Cheaper Energy Fixed tariff by £27 per year. This means the plan is now the cheapest available on the market and will cost the average household £1,015 per year – a full £10 less expensive than its closest competitor Spark Energy’s Direct Debit Advance 3.

Ovo’s plan guarantees fixed unit rates for 12 months and carries £30 per fuel exit fees.

Stephen Fitzpatrick, managing director of Ovo, said the price cut was a result of the relatively warm winter experienced across Europe.

Small suppliers gained more than 700,000 customers over 2013, many of whom switched from one of the big six following winter price rises.

Energy best buy table

Supplier

Plan Name

Price

Ovo Energy

Cheaper Energy Fixed

£1,015

Spark Energy

Direct Debit Advance 3

£1,025

First Utility

iSave Fixed April 2015

£1,028

Co-operative Energy

Fixed to 31 July 2015

£1,077

ScottishPower

Online Fixed Price Energy February 2015 v3

£1,081

British Gas/Sainsbury’s Energy

Fixed Price February 2015

£1,092

EDF Energy

Blue+Price Promise June 2015

£1,099

npower

Price Fix May 2015

£1,107

SSE

1 Year Fixed Price (w/ paperless billing)

£1,115

Green Star Energy

Fix 24

£1,123

E.ON

E.On Fixed 1 Year v6

£1,134

Source: uSwitch.com

Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit (Spark requires this in advance) with bill sizes averaged across all regions.

‘Clear signal that it intends to woo consumers from the arms of the big six’

Tom Lyon, energy expert at uSwitch.com, said: “By making these changes today, Ovo is sending out a clear signal that it intends to woo consumers from the arms of the big six. By dominating the best buy tables smaller suppliers are making sure that consumers will give them more than a passing glance. They are positioning themselves carefully knowing that once a consumer checks them out it’s highly likely that their other attributes will draw them in.

“While the big six are struggling to rebuild tattered relationships, small suppliers are maximising the opportunity by offering fed-up, cash-strapped consumers attractive deals and a fresh start. This is what competition is all about and why it’s so important that people should be shopping around. With around £300 difference between the cheapest and most expensive tariffs on the market, plus the opportunity to fix prices for winters to come, it’s vital that consumers don’t sit back and lose out.”

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Join the conversation

  • Dawn

    I currently pay £54 per month for gas and £92 per month for electricity, interested in anyone who can tell me where the best deal is. Thanks

    • Michele Martinelli

      Hi Dawn,
      The best deal differs depending on your location and consumption so I’m afraid I can’t give you an answer. However, if you arm yourself with a recent bill and run a comparison here – http://www.uswitch.com/gas-electricity/?homepage=new – you can find, and switch to, the cheapest offers available to you.

  • Alan23

    Standing charges seem to be increasing, are there any product with no or very low standing charges? E.g. so you just pay for the energy you use.

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