The decision by energy supplier Ovo to cut its gas and electricity prices by five per cent for dual fuel customers has been welcomed, as it could help stimulate competition in the domestic energy sector.
Mark Todd, director of energyhelpline.com, stated it is a good tactic and will leave many consumers wondering why the Big Six providers cannot make a similar commitment to reducing gas and electricity prices.
While he observed smaller companies such as Ovo are able to respond to changes in wholesale prices faster than larger companies that buy supplies months in advance, they may need to react soon if they wish to maintain their market share.
Mr Todd added: "Clearly the trend in wholesale prices is down so it is not beyond the bounds of possibility that we could see some reductions later this year."
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