However, energy experts say it is too early to tell if the savings will be sustainable so consumers should continue comparing energy prices of price comparison sites, at least until the market settles again.
Stephen Fitzpatrick and Kris Black, the founders of Ovo, said: "We use the latest technology to be more efficient and keep costs low."
Alison Morrison, of consumer group Which?, said: "It is good to see a new supplier enter the energy market, particularly when they are so competitive on price. We hope this encourages other energy companies to review their prices."
According to recent research by ICIS Heren, consumers believe that energy suppliers are not doing enough to bring down the cost of their electricity and gas.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.