Ovo Energy to hike prices and remove online discount
Ovo Energy customers on its standard tariff will see prices rise by up to £135 a year for a typical dual-fuel home, after it announced its second hike of the year.
The firm will increase the price of its standard tariff – known as the Simpler Energy tariff – and remove a £60 online discount on the tariff from Wednesday 17 October.
For customers who currently get the online discount, typical gas & elec prices will rise by 12.4%, adding £135/year to a typical bill, while those who don't get the discount will see an increase of 6.5%, or £75/year.
Its hike in June saw Ovo up rates by 5.1% on its standard tariff, adding £53/yr to a typical dual-fuel household's bill.
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I'm an Ovo Energy customer – how will my prices change?
You're only affected if you're on Ovo's standard variable tariff – called 'Simpler Energy'. According to statistics from regulator Ofgem, about 160,000 customers are on this.
For the average standard variable domestic customer:
- If you get the online discount, prices for a typical gas & elec household will rise from £1,090/yr to £1,225/yr – an increase of 12.4%
- If you don't get the online discount, prices are set to rise by 6.5%, from a typical 1,150/yr to £1,225/yr.
These estimates are based on typical annual consumption of 3,100 kilowatt hours of electricity and 12,000 kilowatt hours of gas.
The rise takes the tariff above regulator Ofgem's proposed price cap of £1,136/yr, due to come into effect in December. Once introduced, all suppliers will not be able to set standard variable or default tariffs above this level, for a typical user.
How can I beat the hike?
There are no exit fees with Ovo's standard variable tariff, so you can ditch and switch penalty-free at any point. If you're on the tariff, you're likely to be overpaying already. Switching to the cheapest deal on the market, at £859/yr, means you could save upwards of £360/yr based on typical use once the hike hits.
If you want to stick with Ovo, the firm has a cheaper tariff – its 2 Year Fixed Energy (online) tariff – fixed for two years at £1,150/yr, so you could save £75/yr.
Use our free Cheap Energy Club to do a full market comparison to find the best deal for you.
What does Ovo Energy say?
In the pricing statement on its website, Ovo said: "Ovo Energy will be increasing the price of its Simpler Energy tariff. Ovo Energy is committed to supplying clean, affordable energy to all our customers.
"Wholesale energy costs have risen by over 15% since June, as a result we're increasing our variable plan rates and removing the online discount from our variable plan. We review our prices every week to ensure we're giving our customers a fair deal that reflects the real cost of energy and continue to make all our decisions as if our 'customer is in the room' with us."
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