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OVO Energy cut prices more than 10%

Small supplier announces a drop that is more than double the average cut of big six

Ovo energy advert

OVO Energy cut prices by more than twice any cut from big six

OVO Energy announced yesterday that it would cut prices for dual fuel standard tariffs by 10.4%, effective 1 March.

This change will shave £65 per year off the average household energy bill.

The popular, Bristol-based small supplier has consistently offered table-topping energy deals throughout 2014, and is kicking off 2015 with a big question: why didn’t the big six cut more?

Big suppliers ‘can’t hide’

Like the big six, OVO attributed the cut to falling wholesale gas prices, though the average cut from the big suppliers clocked in at about 4%.

According to This is Money, wholesale gas prices have dropped 28% over the previous year, which left many criticising the  meager cuts from suppliers.

The site also includes a message from Ed Davey: “Energy companies can’t hide – this shows what’s possible when it comes to cutting bills.

“The old energy giants are facing record competition thanks to our reforms and it’s bill payers who will benefit. If people aren’t satisfied, now is the time to shop around and join the huge numbers who are switching and saving hundreds of pounds.”

 Better, but still not cheapest

OVO Energy states that it has cut its prices eight times in the last 15 months, and that it was the first supplier to bring an energy plan to the market that was below £1,000 on average.

This includes their current Better Energy Fixed deal, which costs £920 on average — compared to their newly discounted standard tariff, which costs £1,051 on average.

Meanwhile, small and large suppliers alike are offering fixed price energy plans that are hundreds less than their discounted standard plans. A round up of the cuts from the big six so far show a difference of up to £237 when their standard plan is compared to their own cheapest fixed deal.

Supplier Effective date of price cut Standard dual fuel cost after cut Current cheapest dual fuel plan Price difference versus Standard dual fuel plan
E.ON already in effect £1,145 (down £24) £920 £225 cheaper
ScottishPower 20th February £1,167 (down £32) £930 £237 cheaper
npower 16th February £1,169 (down £36) £963 £206 cheaper
EDF Energy 11th February £1,155 (down £9) £999 £156 cheaper
SSE 30th April £1,158 (down £28) £1,174 £16 more
British Gas 27th February £1,156 (down £37) £1,183 £27 more

Households are urged by consumer advocates and government alike to compare their current plans now to ensure they are not overpaying.