OVO Energy has unveiled the first energy tariff to offer customer an average annual bill of less than £1,000.
With the Cheaper Energy Fixed tariff, the independent energy supplier has estimated that consumers would have to pay, on average, just £998 per year for the energy they need to power their homes. The new tariff is considerably cheaper than the industry average rate, which is currently more than £1,200.
OVO's tariff is thought to be the first of many small energy supplier tariffs to hit the market, in order to encourage consumers to consider switching suppliers.
In the UK, more than 95 per cent of energy is provided by the big six energy suppliers - British Gas, EDF Energy, e.On, nPower, ScottishPower and SSE. However, the UK government has encouraged households to switch suppliers in order to reduce gas and electricity prices and create a more competitive marketplace.
Commenting on the launch Cheaper Energy Fixed tariff, OVO's founder, Stephen Fitzpatrick said that its prices reflected the "actual cost of doing business."
Mr Fitzpatrick then went on to add: "Transparent pricing will help consumers to trust the energy market again. That means when wholesale prices fall, customers shouldn't see prices being frozen, they should see them falling."
OVO has said that its seen wholesale gas prices drop by 9.5 per cent, which had allowed to it to make its fifth price cut since autumn last year (2013).
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