Another Supplier Increases Energy Prices

OVO Energy has increased its energy prices for new customers.

Whilst existing OVO Energy customers on their fixed rate tariff will not be affected, new customers will go onto a new, higher priced, gas and electricity tariff.

Ovo’s New Energy duel fuel tariff has been increased by 6.2%, meaning the average UK household will pay £1,115.62 per annum.

There will also be a smaller rise of 3.5% for variable rate customers which will come into force on 1st January 2012.

This is increase is less than that experienced by customers of the Big 6 energy providers, nevertheless it is still an increase which will not be welcomed by consumers, many of whom are already struggling with their finances.

Stephen Fitzpatrick, Ovo’s Founder and Managing Director said: “We strive to provide our customers with the lowest prices we possibly can. Earlier this year we were able to forward-buy a significant amount of energy before wholesale rates started to rise, which enabled us to delay passing on subsequent price increases to our customers.

“Unfortunately we’re now in a position where we must implement a small rise to our tariffs, to reflect the higher wholesale rates we’re paying. We will continue to champion our Fair Price Pledge and we will do everything we can to offer our customers the best possible deal.”

Scott Byrom, energy expert at MoneySupermarket.com said: “This rise is bad news for consumers, just as we head into the winter months and see average energy bill prices in the UK move up a notch.

“Many people are already feeling worried about the cost of heating their homes in colder weather, with six per cent of respondents to a recent site poll on MoneySupermarket saying they can’t afford to turn on their heating.

“Consumers can, however, take action to reduce their energy bills by making sure they are on the best energy deal for their usage and region.

“Finding the right tariff means bill payers could save on average £237 per year.

“For example, the cheapest online tariff available is npower’s Sign Online 24 with annual bills of £1,050 on average, but, for the same price, consumers can protect themselves against future price rises with either EDF Energy’s Fix for 2012 tariff with bills fixed at £1,050 until December 31st 2012.”

MoneyHighStreet comments: “Energy prices are only going one way at the moment and that is up. It is absolutely vital that you find the right energy plan to suit your household needs and compare prices to do this.

“It is also important that you look at how you might be able to save money through a close look at your energy consumption. It’s not just a case of trying not to turn your heating on. How about making sure you turn lights off when you leave a room, or if making just a single mug of coffee only boil enough water to fill the mug?

“Our article ‘Six ways to save money on your energy bill‘ may be useful and help you with ideas, including of course switching energy supplier if need be.”