Energy firm Ovo cuts dual fuel tariff by 7%

FLEDGLING energy firm Ovo has become the UK's cheapest gas and electricity supplier after cutting its standard dual fuel tariff by 7 per cent.

The New Energy Fixed Tariff from Ovo, which supplies 15 per cent of its energy from renewable sources, has an average cost of 855 a year, based on medium usage levels.

The deal enables it to undercut the big six energy suppliers – E.ON, EDF Energy, British Gas, npower, ScottishPower and Scottish & Southern Energy – for standard gas and electricity tariffs. It also edges out fellow newcomer First Utility, which previously offered the most competitive standard rate at an average of 889 a year.

But online dual fuel deals paid by direct debit remain the cheapest available, with the average family paying by on receipt of a regular bill able to save up to 300 a year by moving to the best online tariff.