Ovo is offering the cheapest energy tariff to ALL its customers with no change fees, following the lead of rivals as the new price cap of £2,500 comes into force
- Those with expensive flat rates will automatically be moved to the cheapest offer
- Those with fixed offers that are priced similar to the cheapest fare can change at no cost
- Some customers could save £100 by Christmas by switching to the cheapest deal
Ovo has followed in the footsteps of competing energy providers by allowing all of its customers to switch to its cheapest tariff, regardless of their contract.
As the new energy price cap guarantee kicks in, Britain’s third-biggest energy company said it was contacting all its customers today to warn them they could pay less by switching to its tariff standard variable called Simpler.
Customers who fixed their energy contract when tariffs were higher – before the government announced average bills would be capped at £2,500 – will not have to pay an exit fee to switch to the lowest offer. cheaper, he added.
Ovo will automatically move those on the most expensive fixed rates to its cheapest offer
Those with more expensive fixed rates will automatically be moved to the cheaper offer, so they don’t have to do anything.
Other customers, who enjoy similar rates to Simpler, will be informed of their options and can decide to switch or stay put.
Those already on the best price, including those who made fixed deals before energy prices started to rise, will be told they don’t need to switch.
Ovo, which has around 4.5million customers, said by switching to its standard variable rate some customers could save £100 each by Christmas.
The move follows similar steps by rivals British Gas, EDF, Eon and Octopus, which all announced last month that they would open their cheapest fares to all their customers.
British Gas, Octopus and Eon have automatically switched customers benefiting from fixed tariffs with a unit rate higher than the energy price guarantee to the cheapest tariff.
EDF also said those with fixed agreements would have their prices automatically adjusted to reflect the government’s price guarantee and suspended exit charges for customers who change.
|Annual bill below current energy price cap||Guaranteed annual energy price bill with £400 discount||Average monthly cost|
|Figures calculated by This is Money based on the current energy price cap of £1,971 compared to the new energy price guarantee cap of £2,500 with the annual rebate of £400 then deducted|
Ovo Managing Director Raman Bhatia said: “We want to support customers this winter and beyond.
“That’s why we’re reviewing all tariffs to make sure customers get the best price for their energy.”
Bills help struggling Ovo customers worth £1,000
Ovo is also encouraging those expecting to struggle to pay their bills this winter to access its newly launched support package, worth up to £1,000 per customer.
It said it was offering financial support including an emergency charging extension, payment holidays for certain customers, payments of up to £400 for a new boiler and free thermostats.
Over the past year, more than 3,000 Ovo customers have received debt advice from the provider, the company said.
Under the new price cap, which came into effect over the weekend, households using an average amount of energy will pay no more than £2,500 towards their annual bills – but if they use more they will pay more.
In effect, the cap limits the average unit price of gas and electricity, rather than the final bill.
The average unit price for dual-energy customers paying by direct debit is limited to 34p/kWh for electricity and 10.3p/kWh for gas, including tax.