OVO Energy price rise
Commenting on OVO Energy increasing the cost of its New Energy Fixed online tariff, Scott Byrom, utilities manager at moneysupermarket.com said, "Following a trickle of price reductions earlier on this year, OVO Energy has become the first provider to strike the unwelcome blow of a price increase in 2010. The rise of over eight per cent, or £72, to its New Energy Fixed tariff means bill payers will now pay £926 a year for the security of fixed rates. This compares to £876 a year with npower's Sign Online 18 tariff, the current best online deal offering customers a capped rate against 'Standard' prices until 30th June 2011. However, it's E.ON's fixed rate product - 'Fix Online 8', which may offer the best deal with prices "fixed" until 1st July 2011.
"OVO Energy came onto the energy scene with a bang back in 2009, offering one of the best value online dual fuel tariffs, attracting a significant number of customers, so it's a shame to see prices hiked so soon. The fall from grace is stark - having dropped from top spot to bottom of the online table in one fell swoop.
"OVO Energy has also removed it's variable tariff - although any customers who have already signed up to it will not be effected - strengthening the case suggesting fixed deals will become more prominent as we approach a period of uncertainty surrounding price movements.
"Ultimately, this illustrates just how quickly this market can change with OVO Energy instantly becoming the provider with the most expensive online product following a period of time in top spot offering the best prices. Further to this, with recent regulatory changes around notification of expiry dates, it's crucial customers keep a watchful eye on the energy market over the coming weeks and months to ensure they remain on the best deal possible.
"If the cost of wholesale gas continues to rise we could see further activity from providers, and as a smaller player it is clear OVO Energy is more sensitive to changes in price than other larger energy companies. We all know the energy companies tend to act like a house of cards, once one goes the rest will follow; should we see a summer of price rises then I'm sure many consumers will be extremely concerned about their ability to afford their energy bills, especially later this year as we approach the winter months."