Ovo Energy has launches its first deal below the government’s £2,500 cap on typical household bills amid falling wholesale gas prices, which have fallen by around 80% since August last year, according to the Resolution Foundation, a living standards think tank.
The leading UK energy supplier is offering a one-year fixed tariff of £2,275 to existing customers – undercutting the government’s energy price guarantee (EPG).
The EPG reduces, compared to the undiscounted price of energy, the amount people can be charged per unit of gas or electricity, to an annual equivalent of around £2,500 for a typical household in Britain.
Ovo, which has about four million customers, reportedly said it launched its new tariff because customers desired “the security of a long-term fix to protect them against the continuing energy price uncertainty”.
OVO Energy is a UK-based energy supplier that was founded in 2009 with the aim of providing affordable, renewable energy to customers. The company has grown rapidly in recent years and now serves over 5 million customers across the UK, France, and Spain.
One of OVO Energy’s key selling points is its commitment to renewable energy. The company sources all of its electricity from renewable sources, such as wind and solar power, and offers customers the option to purchase 100% renewable energy tariffs. OVO Energy also invests in renewable energy projects and has committed to becoming a net-zero carbon business by 2030.
In addition to its focus on renewable energy, OVO Energy has also developed a range of innovative products and services for customers. These include smart home technology, such as smart meters and thermostats, which enable customers to better manage their energy usage and reduce their bills. OVO Energy also offers a range of electric vehicle (EV) tariffs and has launched a scheme to install EV chargers for customers.
Despite its rapid growth, OVO Energy has faced some criticism in recent years. In 2020, the company was fined £8.9 million by Ofgem, the UK energy regulator, for overcharging customers and issuing inaccurate statements. OVO Energy has since apologized for the errors and implemented measures to ensure that such issues do not occur in the future.
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