Ovo cuts fixed tariffs by 1.6 per cent

Independent supplier Ovo Energy has cut its 12 month fixed tariffs by 1.6 per cent for new and renewing customers in response to a drop in wholesale costs.

The drop will only affect its fixed pay-monthly Better Energy and Greener Energy tariffs. The price for a dual fuel customer will now be £918, saving renewing customers £93 on the price they paid this time last year and £235 on the average big six standard variable tariff for new customers.

The reduction, which will be made effecitve immediately, is the seventh time Ovo has dropped its prices in 14 months. Ovo also claims that it has been on average 18 per cent cheaper than the average big six variable tariff during that time.

It last cut prices in March, with a reduction of 10.4 per cent to its variable gas price tariff and 5.8 per cent to its dual fuel rate.

Energy secretary Amber Rudd told the big six energy suppliers at the start of June to cut their energy prices now the threat of a Labour price freeze has been lifted.  

Last month big six supplier British Gas cut its gas prices by 5 per cent in order to pass on the low wholesale cost of gas to customers.