Independent energy supplier Ovo Energy has decided to cancel its intended January price rise for its variable rate customers due to a drop in wholesale costs. Ovo Energy said it would increase gas and electricity prices by 3.5% for 10,000 of its customers.
Audrey Gallacher, Director of Energy at Consumer Focus has welcomed the news: “This is a good sign and it throws down a gauntlet to the Big Six. Wholesale prices have been falling recently, and all suppliers should be looking at whether that provides an opportunity to bring prices down.
British Gas MD Phil Bentley recently argued that bills would still rise despite wholesale costs dropping due to increasing distribution and green costs.
Consumer Focus say the Big Six could learn from new entrants like Ovo. Audrey Gallacher asked: “If it (Ovo) can cancel price rises because market fundamentals change, it begs the question why can’t others?”