In a welcome move for households grappling with the ongoing cost of living crisis, OVO Energy has announced a substantial reduction to its energy prices. The change, effective from July 1st, will provide immediate relief for customers on its standard variable tariff.
The supplier confirmed it is cutting its unit rates and standing charges for both gas and electricity, a decision that will slash the typical annual bill for a dual-fuel customer paying by direct debit by around £145.
What This Means for Your Wallet
This price drop comes as a direct response to the continued fall in wholesale energy costs. While the energy market remains volatile, this downward trend has finally allowed suppliers like OVO to pass on some savings.
The reduction aligns with the latest Ofgem price cap, which also sees a decrease for the July to September quarter. For OVO customers, it means the energy portion of their monthly outgoings will become noticeably lighter.
A Step in the Right Direction
"We're committed to offering fair and transparent prices," an OVO spokesperson stated. "As wholesale costs have steadily declined, we're pleased to be able to reduce our prices for customers on our variable tariff, providing some financial respite during the warmer months."
This announcement will impact a significant portion of OVO's customer base who are not currently locked into a fixed-term deal. It serves as a crucial reminder for all energy customers to review their current tariffs and ensure they are on the best possible deal for their circumstances.
While this price cut offers a reprieve, experts continue to advise consumers to practice energy efficiency where possible, as bills, despite the reduction, remain high compared to historical averages.
