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29 June 2012: Ovo cuts prices on two fixed tariffs

Ovo Energy have announced a price-drop that affects their two fixed tariffs, New Energy and Green Energy. The prices for both have been cut immediately by 4.8 per cent for electricity and 4.4 per cent for gas, which gives an average saving of 4.5 per cent for dual fuel. The new rates are available to new and returning customers.

The news will be welcomed by consumers across the country, however it does not necessarily mean that prices will come down across the board. Mark Todd, director of price comparison service energyhelpline.com says, “Any cuts are welcome but it’s important to realise on the whole, the cheapest deals are still £24 more expensive than they were in January this year. Even Ovo’s cheapest price is also £27 more expensive than in January. This means that standard prices are still more likely to rise next than fall.

“Energy suppliers are a bit like elastic bands. They get stretched and stretched by rising wholesale prices until they snap and do a price rise. But on the flip side, when wholesale prices go down there will be regulator or consumer pressure to cut prices as suppliers’ profit margins improve.”

“The energy market is really volatile at the moment and whilst wholesale prices have been in slight decline lately, the tide could easily turn and consumers should be prepared for possible rises in the run up to winter,” Mr. Todd continued.

For consumers to get their best possible deal on their energy, now is the perfect time to compare and switch suppliers. Why not see if you could save hundreds of pounds from your energy bills.

Current best deals

	Supplier	Tariff	Average Cost	Average Saving*	Notes
1	EDF	Blue + Price Promise September 2011	£1,054	£268	Fixed until September 2013
2	Scottish Power	Online Energy Saver 19	£1,055	£267	Guaranteed discount until 31st July 2013
3	Sainsbury’s Energy	Online Price Freeze June 2013	£1,058	£264	Fixed until June 2013
4	npower	Bill Saver August 2013	£1,061	£261	Guaranteed discounts until 31st August 2013
5	npower	Energy Online October 2013	£1,064	£258	Guaranteed discount on standard prices until 31st October 2013. Cancellation fees apply
6	OVO Energy	New Energy Fixed	£1,088	£234	Prices fixed for 12 months
7	E.ON	Save Online v12	£1,113	£209	Guaranteed to be 2% cheaper than e.on standard in 1st year
8	British Gas	Online Variable August 2013	£1,120	£202	6% discount against their Clear & Simple prices until 31st August 2013
9	first:utility	iSave v11	£1,128	£194	None
10	OVO Energy	Green Energy Fixed	£1,139	£183	Prices fixed for 12 months

* based on average dual fuel tariff costing £1,345 per year in Oct 2011 (Source: OFGEM) and adjustment of £23 for recent price drops

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