The price cutting party is not over yet, as OVO has ‘gate-crashed’ the Big Six energy suppliers to offer the cheapest tariff on the market, comments Confused.com.

OVO, the latest energy provider to enter the price cutting race following the recent cuts from the UK’s major suppliers, has cut the cost of its New Energy Fixed  tariff to £855 a year, putting it at the top of the table for price.

In addition to being the cheapest tariff currently available, OVO’s fixed plan offers security that energy bills will not rise during the term, and 15 per cent of energy comes from renewable sources.

Price comparison website Confused.com says it has become a battle between ‘the new kids on the block’ as little known company First Utility was previously offering the cheapest tariff.

Gareth Kloet, head of energy at Confused.com said: “This comes just as the majority of price cuts announced by the big 6 start to come into play but they really can’t compete having all elected to lower their prices just enough to remain competitive with 2010 price cut pioneer British Gas, but failed to take into account the challenge from the smaller companies.”

He added that price is the main priority for attracting new customers, as OVO are a relatively new provider with an unproven track record in customer service; “it’s great to see them putting pressure on the established companies by out doing their recent price cuts,” he said. “In today’s highly competitive market, this could put them in an advantageous position as customers are seeking alternatives to the usual suspects.”

Mr Kloet said that OVO’s price cut further confirms that the cheapest deals are to be found in online energy plans, and urges consumers to compare gas and electricity prices to ensure they get the best deal for them.

Paying by direct debit and combining their gas and electricity with a dual fuel tariff can also help, he added.

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