Energy News

Ovo Energy puts prices up 8%

Thursday, 29 April 2010

By Garnet Roach - garnet@consumerchoices.co.uk

Consumers have been urged to fix their energy prices as one of the UK’s cheapest broadband providers, Ovo Energy, announced the first price hike of 2010.

The gas and electricity provider announced an increase in its New Energy Fixed tariff by 8% - or £72 a year - blaming recent rises in wholesale prices.

While existing Ovo Energy fixed-rate customers won’t be affected by the increase, the price jump means that the small energy supplier is no longer one of the UK’s five cheapest energy providers.

Wholesale prices have been rising for the past two weeks, with experts urging consumers to sign up to fixed-rate tariffs now.

Chris Eagle, energy expert at Energychoices.co.uk, said: “Online energy tariffs are also offering some great deals and you should take advantage of the lower prices on offer before other providers join Ovo in putting prices up.”

Average standard tariff prices currently stand at £1,169.50 but signing up to an online deal or fixing your prices can cut costs to just £899.65 a year - offering a saving of almost £270 a year on average, he said.

However, Eagle added that consumers should always compare gas and electricity prices before switching energy provider. “But bear in mind that if prices fall once you've signed up to a fixed-rate tariff, you could end up paying even more for your gas and electricity,” he concluded.