Ovo Energy Slashes 12-Month Fix to £2,275, Under Government Cap
Ovo Energy has unveiled a new 12-month fixed tariff at £2,275 for existing customers. That’s comfortably below the government’s typical household bill cap of £2,500. The move comes as wholesale gas prices tumble, making it cheaper to lock in energy costs. Ovo says customers crave “the security of a long term fix” amid ongoing price chaos.
Martin Lewis Warns: Hold Fire on Fixed Deals!
Money expert Martin Lewis from MoneySavingExpert has poured cold water on Ovo’s offer. He advises shoppers not to rush into a fixed tariff just because it looks cheaper now. “Wholesale prices have slumped, so the energy price cap is likely to drop too,” he says. That means bills could plunge by 20% soon, and stay low through 2023 and early 2024.
Energy Bills Set to Dive This Summer as Price Cap Falls
Following the recent UK budget and falling gas costs, experts predict household energy bills will drop this summer. Suppliers are locking in cheaper long-term gas deals, signalling the government’s Energy Price Guarantee (EPG) might be scrapped after June.
Analysts at Cornwall Insight forecast Ofgem’s energy price cap will plunge from £2,500 to around £2,153 from July. Financial giant Investec goes further, suggesting the cap could dip to just £1,981 a year — though this is still way above pre-Ukraine invasion rates.
Shop Around For Cheaper Energy Deals Soon
Experts say July could bring a shopping bonanza for UK households hunting for better energy deals. With price caps tumbling and supply costs easing, savvy consumers could save a tidy sum by switching providers.
