Ovo Energy has taken the title of cheapest energy supplier in the UK, after cutting the price of its New Energy tariff by 7%.
The UK’s ‘big six’ energy suppliers are facing serious competition from newcomer Ovo Energy, which has shot to the top of energy comparison tables after cutting its prices.
The average annual bill for Ovo’s New Energy tariff is now just £855, according to Ovo. It says this is 23% cheaper than the average price of a standard tariff from one of the big six energy suppliers.
You can follow all the latest energy price cuts and find out how much you could save by switching energy tariffs using Which? Switch.
The cheapest energy tariff for you
Head of switching at Which? Switch Alison Morrison said: ‘Ovo’s price cut is great news for consumers, and the extra competition will hopefully put pressure on the ‘big six’ to consider further price cuts.
‘However, while Ovo may now offer the cheapest average bills, which energy tariff is cheapest for you will depend on many factors, such as the area you live in and the amount of energy you use.
‘Make sure you do an accurate online energy comparison, preferably with your energy bills in front of you, to work out which tariff will offer you the smallest energy bills.’
Fixed or variable energy prices
Ovo’s New Energy online tariff is available as a variable or fixed-price tariff. Customers who opt for the fixed-price tariff are guaranteed set energy prices for 12 months, but will be charged an exit fee of £30 per fuel if they switch away from the tariff during this period.
Founder and managing director of Ovo Energy Steven Fitzpatrick said: ‘It’s a simple formula. We want to deliver cheaper, greener and simpler energy to our customers.
‘When wholesale gas and electricity prices come down, customers can expect our prices to come down. Of course, energy costs can rise as well as fall, but customers who sign up to Ovo’s fixed tariffs know that their low prices are guaranteed for at least 12 months.’
Ovo green energy
The New Energy tariff from Ovo uses 15% renewable energy, which is three times more than the UK average of 5%. Ovo also offers its Green Energy tariff, which uses 100% renewable energy, but is a little more expensive. However, Ovo says this energy tariff is still cheaper than a standard tariff from the big six.
Find out more about greener energy options in our greener living section, where we have guides about wind and solar power and how to install a wind turbine. You can also find out the most energy efficient home appliances Which? has reviewed in our energy saving appliances review.
Lower your gas and electricity bills
You can compare energy prices and switch to a new gas and electricity supplier on Which? Switch. People who switched with us between 1 October and 31 December 2013 are predicted to save an average of £234 a year on their bills.
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