Ovo Energy cuts prices by 2.5%

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An energy company has announced a 2.5% price cut for consumers, saying that the mild winter weather has meant that gas and electricity are cheaper.

Ovo Energy claimed that the reduction meant its bills were now about £180 a year cheaper than the average of the Big Six companies which supply the bulk of the UK’s households.

The “insurgent” company’s chief executive Stephen Fitzpatrick said that the energy market was not working efficiently for consumers, with the big companies relying for much of their profit on customers’ reluctance to switch away from the names which supplied their areas pre-privatisation.

Fitzpatrick told BBC Radio 4’s Today programme: “Today we are announcing a relatively small price cut – 2.5% – but it’s the fourth price cut we’ve had since September.

“What we’ve seen is the weather over this winter has been quite mild and it’s led to gas and electricity prices falling by about 6% or 7% and on top of that we are starting to see some impact from the government policy where they have asked distributors and network companies to try to reduce their cost.

“The rates that we are charged for accessing the pipes and the wires has fallen for next year following some government intervention, so that’s feeding through as well. I think today we are going to be £180 cheaper than the average Big Six standard tariff that most people pay.”

via Ovo Energy cuts prices by 2.5%.

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