Are energy prices going up or down?

All the signals point to uncertainty for household energy prices this winter, according to price comparison site uSwitch.com, following a week when one new supplier cut prices while another pushed […]

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By Vicky Ellis

All the signals point to uncertainty for household energy prices this winter, according to price comparison site uSwitch.com, following a week when one new supplier cut prices while another pushed them up.

This week Ovo Energy dropped its prices for new customers by 4.5% from now on by an average of £60.

The move will see its cheapest plan, New Energy Fixed, fall from £1,140 a year to £1,088.

In contrast First:Energy put up the price of its market-leading deal by roughly £100 a year, making it the second best tariff. It replaces the iSave Dual Fuel V10 plan at £1,027 a year with the V11 which costs £1,128 a year.

Tom Lyon, energy expert at uSwitch.com said: “This has been a bitter-sweet week for consumers with one supplier pushing prices up while another is pulling them down. Ovo Energy is reacting to lower wholesale prices by passing the benefits on to new customers. This highly proactive approach is something that we’re coming to expect from this new supplier.”

With Big Six suppliers hinting at price rises, there’s bound to be confusion in the coming months, he suggested: “Early indications from the big six suggested a price hike this winter, but now wholesale prices are dropping… The fact is that if wholesale prices continue to fall it will make it extremely difficult for the big six to justify a price hike – they could even find themselves facing calls for a price cut instead.”