Ovo Energy has announced it will raise the price of its variable tariff from next month.
The mid-tier supplier said it is increasing its variable plan rates and removing the online discount associated with it, following a rise of 15 per cent in wholesale costs since June.
This means from 12 October the Simpler Energy (current plan with online discount) will rise by £135 (12.4 per cent) to £1,225 while the Simpler Energy (without online discount) will rise by £75 to £1,225. The latter represents a rise of 6.5 per cent.
A statement on the company’s website said: “We review our prices every week to ensure we’re giving our customers a fair deal that reflects the real cost of energy and continue to make all our decisions as if our ‘customer is in the room’ with us.”
Stephen Murray, energy expert at MoneySuperMarket, said: “Whilst the percentage of Ovo customers on standard variable tariffs is relatively low, this increase is in stark contrast to customers who switched to the brand’s two-year fixed deal this time last year.
“Those customers are now sitting on a deal that is almost £100 cheaper than the current cheapest deal on the market, and still have a further year of protection to come at rock-bottom prices.
“With all indications that prices will continue to increase this winter, now is the time to switch to one of the many competitive fixed-rate tariffs on the market. The price you pay will be secured for the next 12 months – or 24 if you go with two-year fixed tariff – and you will save £250 or more on your bills.”
Ovo is one of a number of suppliers to blame wholesale energy costs for recent bill rises.
Earlier this month Bulb confirmed it will raise prices for the third time this year, after previously hinting the rising cost of wholesale gas and electricity would force it do so.
Bulb said that since the company’s last price increase in June, wholesale energy costs have risen by a further 18 per cent.
All of Bulb’s 750,000 customers on its single “Vari-Fair” tariff will see their typical annual bill rise to £1,025, up from £923 – a rise of £8.50 per month from 11 November.
Big six supplier Scottish Power announced it is increasing its standard variable tariff (SVT) for the second time this year.
Around 900,000 dual fuel customers will see an average rise of 3.7 per cent from 8 October, due to a 20 per cent increase in wholesale costs since April.
While British Gas also blamed wholesale energy costs for its second increase in 2018 which will come into effect next month.
In August council-owned Bristol Energy, said it was increasing its tariff for the first time in its history.
The 12.6 per cent increase will mean an average monthly bill increase of £10.68
Last month industry regulator Ofgem announced it was raising its safeguard tariff due to higher wholesale gas and electricity costs since the level was last updated in February.