Following on from last year's energy price hikes, Ovo Energy has followed in the footsteps of Co-Operative Energy in lowering its tariffs, according to an article published by Reuters.
Both new and existing customers who renew their contracts will now see a five per cent reduction in fixed dual-fuel rates.
The price cut has been attributed to drop in the price of wholesale energy.
Stephen Fitzpatrick, Ovo Energy's managing director, spoke about the decision.
He said: "Due to a recent decrease in wholesale costs, we are able to respond and pass on these savings to consumers, thereby giving them a cheaper and simpler alternative to the 'Big Six."
Consumer Focus, a supporter of the upcoming Big Energy Week, has welcomed the move and as a result has urged others to take similar action to find cheaper gas and electricity.
Director of energy at Consumer Focus, Audrey Gallacher, said: "The gap between wholesale and retail prices remains a fault line for consumer confidence in the energy market."
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