Ovo to hike energy bills by up to £112 a year for 545,000 households
The average annual dual fuel bill will increase from £1,137 to £1,249 - a 10 per cent rise
OVO is hiking energy bills by up to £112 a year from April 1 for 545,000 customers.
It means the average annual dual fuel bill will increase from £1,137 to £1,249 for 160,000 standard variable users - a 10 per cent rise.
While 385,000 customers of Boost - Ovo's prepayment meter arm - will see bills rise by £106 a year on average.
The move will take standard variable energy bills to just under energy regulator Ofgem's new standard variable price cap of £1,254, which also takes force on April 1.
Ofgem's new prepayment meter cap of £1,242 takes effect on the same day.
Ovo follows in the footsteps of British Gas, EDF, Eon, Npower, Scottish Power and SSE which have all announced price hikes of 10 per cent from April 1.
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The supplier blames the increase on rising wholesale costs - the price that energy companies pay for gas and electricity - but comes as energy supplier Bulb has announced a bill cut due to falling costs.
Rik Smith, energy expert at comparison website uSwitch.com, said: “Since Ofgem raised the level of the price cap, price increases have been confirmed by all of the Big Six plus nine smaller providers.
"More will likely follow suit before the bill hikes take effect on 1 April.
“If your supplier has priced within a few pounds of the cap, you’re on a bad deal.
"The only way to make sure you pay as little as possible for your gas and electricity is to switch tariff and show suppliers you won’t be taken for granted.
"Now is the time to take action and save over £300.”
A spokesperson for Ovo added: "The company is making these changes because the cost of commodities has increased substantially over the past year and we are increasing our prices to remain sustainable and responsible.
"All of our variable tariff prices will always be within the price cap, so customers will always have this safety net in place to ensure they’re paying a fair price for their energy - it’s an idea we’ve supported from the start."
More on energy bills
The Big Six energy firms have been accused of running a "cartel" after they ALL hiked prices to the same amount.
It comes as research published today has found that mental health sufferers pay up to £1,550 EXTRA each year for energy, broadband and household bills.
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