Chippy Ovo cuts prices after “falling wholesale costs”

Independent electricity supplier Ovo Energy announced it is cutting prices by 2.5% today because of “wholesale costs”. The cut is across all of its 12-month fixed energy plans and the […]

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By Vicky Ellis

Independent electricity supplier Ovo Energy announced it is cutting prices by 2.5% today because of “wholesale costs”.

The cut is across all of its 12-month fixed energy plans and the supplier said this is its fourth reduction in prices since the autumn.

The new tariff makes Ovo the cheapest in the country now.

On social networking site Twitter the firm used a hashtag calling on consumers to “feel loved again” to chime in with Valentine’s Day.

Stephen Fitzpatrick, Founder and Managing Director of Ovo Energy said: “There is a large part of every energy bill that we have no control over.

“However, we are fully committed to making sure that the elements that we can control, like the prices we charge for commodity, operating costs and profit margins will always remain cost reflexive. If the overall cost of supply drops we will always pass that saving on.”

He stuck the boot into bigger rivals for using “loss-leading tariffs” to attract new customers at higher costs for existing ones.

Last year the lively energy boss caught headlines for going head to head with bigger suppliers when they were summoned before MPs.