OVO has introduced a new initiative called “Heat Pump Plus,” aiming to offer competitive pricing for heat pumps.
The plan is designed to potentially reduce running costs for households by 50%.
Under the “Heat Pump Plus” scheme, OVO is halving the cost of electricity for heat pumps, offering a rate of just 15p per kWh.
This move could make heating a typical home with a heat pump roughly £500 cheaper annually compared to running a traditional gas boiler, the energy supplier has said.
The initiative features a two-tiered pricing structure, separating rates for heat pump usage and overall household energy consumption.
The primary goal is to encourage wider adoption of air source heat pumps known for their energy efficiency and carbon emissions reduction potential.
Currently, home heating systems are responsible for about 11% of the UK’s greenhouse gas emissions.
Mat Moakes, Chief Commercial Officer, OVO, said: “The UK is trailing far behind Europe on its heat pump installations. By halving the running costs of a heat pump, we’re helping to level the playing field between gas boilers and heat pumps, making them a more viable option for those wanting to make the green switch to electric.
“But this has to be the case across the board. It’s time to shift policy costs from electricity to general taxation so everyone can benefit from greener, cheaper electric heating systems, sooner.”