OVO trumps Big Six with 10.4% price cut

OVO Energy has cut its gas prices by a Big Six-shaming 10.4%, marking the biggest energy price cut announcement of the winter so far.

OVO trumps Big Six with 10.4% price cut

From March 1, OVO will more than double last week’s best price cut (5.1%, from nPower) for all customers on its standard variable tariff.

This will lop £65 a year off its average dual fuel bill, bringing it down to £1,051.

But even after OVO’s relatively generous price cut, you could still save more by switching to the cheapest deal.

Wholesale failure

Energy bill payers haven’t exactly been wowed by the recent flurry of standard gas price cuts, which were made to reflect the falling wholesale prices the suppliers have to pay.

In around 12 months, wholesale prices fell by well over 20% - but the lowest price cut passed on by one of the Big Six suppliers, EDF Energy, was a measly 1.3%, saving customers, on average, just £9 a year.

Meanwhile, there have been much more meaningful price movements in the 1-year fixed-rate energy tariff tables, with Extra Energy aggressively re-pricing to stay on top.

Here’s the top 10 as it currently stands:

Provider and Tariff  Payment Type Tariff Type  Avg. Medium User (Gross) 
Extra Energy –
Fresh Fixed Price Feb 2016 v1
MDD   Dual Fuel  £914.22
Extra Energy –
Clear Fixed Price March 2016 v4 
MDD  Dual Fuel  £918.97
Extra Energy –
Bright Fixed Price Jan 2016 v9 
MDD   Dual Fuel  £919.41
first-utility –
iSave Fixed v44 March 2016 
MDD   Dual Fuel  £919.49
E.ON - Fixed 1 Year v15 Online  MDD   Dual Fuel   £919.57
E.ON - Fixed 1 Year v15  MDD   Dual Fuel  £929.57
ScottishPower –
Online Fixed Price Energy February 2016 
MDD   Dual Fuel  £930.03
Green Star Energy –
Rate Saver 12 Months Fixed version 1501 Paperless 
MDD   Dual Fuel  £931.61
Co-operative Energy –
Fair and Square March 2016 V2 
MDD   Dual Fuel  £944.00
Green Star Energy –
Rate Saver 12 Months Fixed version 1501
MDD  Dual Fuel  £946.61

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

* 51% consumers, MoneySuperMarket data, December 2014

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