Gas and electricity Updated:
Ovo Energy has announced that it has cut its dual gas and electricity tariff by 5%.
The independent energy firm revealed it has reduced prices by 5% for new customers and existing Ovo customers who are due to renew with the supplier.
It says that the move has made its 'New Energy' tariff the cheapest on the market.
The reduction is effective from 6 January and will see an average UK household paying £1,060.77 per year for their gas and electricity.
This compares favourably with an average of £1,194 for equivalent tariffs with the UK 's 'Big Six' energy companies.
The announcement will not affect existing customers in a fixed contract and Ovo's variable rate prices.
The price cut from Ovo follows a 3% price decrease from The Co-operative in December, fuelling hopes that UK energy customers are at last seeing alternatives to the traditional suppliers which all increased prices last year.
Ovo Energy's managing director, Stephen Fitzpatrick, said the cut in prices had been made possible by a fall in wholesale energy costs.
Mark Todd of Energyhelpline.com said that customers of the 'Big Six' will be asking why their suppliers are not passing on savings.
"To be fair, smaller suppliers can react more quickly to price shifts than the bigger players who buy their supplies on the wholesale market months in advance so we would not expect an immediate response from the Big Six," he commented.
"However, clearly the trend in wholesale prices is down so it is not beyond the bounds of possibility that we could see some reductions later this year.
"Certainly, some of the Big Six need to offer far more competitive deals at the moment if they want to retain their market share."
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