The increase will come into effect from January 2017 for customers on the company’s Pay Monthly Simpler tariff and will result in an average increase of £50 per year for dual fuel customers.
The independent supplier blames a steady increase in wholesale commodity costs for both electricity and gas. Electricity unit rates at Ovo are increasing 18 per cent, whilst its standing charge on both electricity and gas will be reduced by £10 per year.
The price change follows increases from GB Energy Supply and Ecotricity of 30 per cent and 5.7 per cent respectively.
In August this year Ovo also hiked prices by 3.6 per cent and claims that since June, the forward price of gas has increased by 30 per cent and electricity by 23 per cent. Ovo’s New headline price for a dual fuel customer will be £1054 per year.