OVO now cheapest energy supplier

Small energy suppliers are challenging their bigger rivals and beating them on price yet again, says uSwitch.com.

Today, OVO Energy has launched a market beating energy plan which averages out at £921 a year. It makes the supplier the cheapest in 13 out of 14 energy regions.

The move means that for the first time the two cheapest players in the market are both outside of the big six. First:Utility, which previously held the top slot, now slips into second place. As a result consumers will have even more choice, especially for those looking for an alternative to the six energy suppliers who dominate the market.

The new OVO plan offers a fixed price for 12 months. Customers must pay by direct debit and agree to online billing. The good news too is that OVO provides 15% renewable energy so this hybrid product ticks the green box too.

Will Marples, energy expert at uSwitch.com, says: "The fact that two alternative suppliers are now offering the lowest prices in the market is great news for consumers. It means that they now have a serious choice between going with one of the big six suppliers or trying out a smaller player.

"Although small and relatively new, both OVO and First:Utility are setting out to differentiate themselves. First:Utility was the first supplier to offer all customers the chance to get a smart meter installed, putting householders in greater control of their energy usage. OVO's energy is 15% renewable and now they are positioning themselves as the UK's cheapest provider too. This is exactly the type of shake up the market needs.

"As usual though, this plan may not be right for everyone so consumers should always check that they are comfortable with the terms. The fixed price element means that they could see a £30 per fuel exit penalty if they need to leave the plan early so this is something consumers should consider before signing up."

For more information visit uSwitch.com