Ovo has become the latest energy supplier to hike prices, with 94,000 customers on its dual fuel standard tariff set to see bills rise by an average of 5% from January.

The announcement comes amid mounting fears of wider price increases this winter. Other smaller suppliers including Co-op Energy and GB Energy have already hiked their variable tariffs, while MoneySavingExpert.com research found the price of the market's cheapest deal has jumped by £100/year in just six months.

To beat the price hikes and lock in a cheaper deal, use our free Cheap Energy Club.

How Ovo is hiking prices

There are two price changes, which come into effect on 10 January 2017 and apply to those on Ovo's Pay Monthly Simpler variable tariff:

  • the unit price of electricity will rise by 18%.
  • the standing charges for gas and electricity will each fall by £10 a year.

Ovo says this means that a dual fuel household on typical usage will see an overall 5% increase, with the average annual bill rising from £1,004 to £1,054.

However there will be a steeper rise for the 25,000 customers on an electricity-only tariff - their typical annual bill will rise by £59 to reach £539, according to Ovo's figures - a 12% price increase. 

Around 3,000 gas-only customers will see their bills fall. Ovo doesn't offer gas-only tariffs, but told MoneySavingExpert.com it has a few customers who joined as dual-fuel customers and then switched their electricity away, meaning they are now gas-only customers.

What does Ovo say?

In a statement on its website, the company said: "Since 10 June, the forward price of gas has increased by 30% and electricity by 23%. Ovo reviews its prices on a regular basis and has a strong track record of cost-reflective pricing and passing back savings to customers whenever possible."