The company said the move is in line with “a small downturn in wholesale commodity costs over the past month” and will affect customers on its fixed pay-monthly ‘Better and Greener’ energy plans. The standard variable tariff will not change at this time.
The supplier said the price change “largely reflects movement in the cost of supplying energy to its customers over time”.
Following the price drop, Ovo’s price for an average dual-fuel customer will now be £954, representing a saving of £14 a year.
The price cut follows Labour leader Ed Miliband resurrecting plans last month for forced energy tariff cuts, saying the party would act immediately to slash energy bills if it comes to power in the May general election.
Earlier this month, the Scottish National Party said it would back Labour’s plans and would give Ofgem the power to control prices and force energy firms to pass lower costs on to consumers.