Ovo Energy raises prices
3rd November 2016 | Residential Energy
Ovo Energy has raised its price for duel gas and electricity monthly bills by 8.7 per cent. Ovo Energy is one of the smaller independent energy suppliers which is challenging Britain’s “Big Six” energy suppliers.
Mostly supplying electricity and gas to households, Ovo Energy said the rise was necessary due to an increase in wholesale prices: these have risen by 32 per cent for gas and 40 per cent for electricity since June 10.
Ovo Energy provided the following statement: “Following the price change, which goes live on 3 November 2016, Ovo’s headline price for a dual fuel customer on its Better Energy tariff will be £997 (up from £917).
Ovo Energy made its first profit in seven years in the first half of 2016. It said it expects to reach one million customers in 2017, or 2018. This would give it roughly four per cent market share, up from 2.7 per cent at present.
Small energy suppliers have been taking customers from Britain’s “Big Six” over the past few years. Ofgem figures show that almost two thirds of households have never changed their energy supplier, even though it is far easier to do so now than it has ever been. Ovo Energy’s smaller size means that they have less protection from rapid rises in wholesale electricity and gas prices, which reduces the gap in the discount they are able to offer.
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