The company has reduced its tariffs in line with falling wholesale power costs, and following price cuts from the UK’s big six energy suppliers, and rival independent player Ecotricity.
Despite the significant price cut the average dual fuel bill from Ovo will remain above the £1,000 per year mark but does undercut rival Ecotricity which reduced its average dual fuel bill to £1,189 which will be delayed until 1 May.
Within the bix six vertically integrated players, EDF Energy became the last to announce a gas tariff drop for residential customers on Tuesday, but added that its 1.3 per cent cut will take effect sooner than its rivals.
The cut will come into effect from 11 February, just days ahead of Npower’s 5.1 per cent cut set for 16 February and weeks ahead of cuts from British Gas, Scottish Power, and SSE.
EDF Energy remains behind Eon in the price cut race with the German-owned supplier becoming the first of the big six energy companies to cut its gas tariff, by 3.5 per cent, with immediate effect two weeks ago.
Meanwhile SSE said it will cut its gas bills by 4.1 per cent from 30 April, almost two months after its rivals will bring in similar cuts.