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.”