Independent energy company Ovo Energy has cut the price of its dual fuel gas and electricity tariff by 5%.
Ovo is the second small energy company to cut its rates, following a drop in wholesale energy costs.
In December Co-operative Energy announced plans to drop gas and electricity prices by around 3% from 1 February, saving the average customer £35 a year.
Drop in wholesale energy costs
The average UK household will now pay £1060.77 per year on Ovo’s New Energy tariff.
Which? energy expert Sylvia Baron says: ‘This price drop from Ovo Energy is very welcome and makes the New Energy dual fuel tariff one of the cheapest deals available at the moment.
‘It looks like the smaller suppliers are leading the way in responding to the drop in wholesale prices, as this is the second price drop announcement from a small supplier this winter.’
Cheaper energy bills
The cheaper New Energy tariff applies to new Ovo Energy’s customers and existing customers due to renew their contract with the company.
It doesn’t apply to customers in a fixed contract or on Ovo’s variable rate tariff who must wait until the end of their deal to make the switch to the cheaper dual fuel tariff.
Find out how Ovo sis rated by its customers – and compares to other energy companies – in our energy company satisfaction survey results.
We’ll be announcing the results of our 2012 survey in the next few weeks.