OVO Energy customers can save £202 on bills before new price cap starts

OVO Energy customers can cut a significant £202 off their annual gas and electricity bill before the price cap changes come into effect. Ofgem has announced the new July to September price cap, reducing prices for all variable tariff customers by another 7 per cent, in addition to the 12 per cent savings already witnessed in April.

The new cap means households that use the average amount of gas and electricity will pay £1,568 a year. That's down from the current level of £1,690 a year, a difference of £122. However, OVO Energy customers are being advised that they can outdo the price cap and more if they opt for a special fixed deal.

The Ovo Energy 1 year fixed + boiler cover offers a massive 12 per cent off the current price cap, or £202 a year, a larger saving than the next price cap will provide (approximately £135 for a typical household). The caveat is that you must take out boiler cover for one year, costing £15 a month or £180 for the year, including a boiler service. If you were already considering boiler cover, then this deal looks unbeatable.

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Without boiler cover, the tariff only offers 6 per cent less than the price cap, equating to £101 for a typical use household. This latter option is available to new customers, but would only offer 5 per cent less than the price cap.

Other alternatives include Ecotricity, offering a fix at 9 per cent less than the price cap, and Octopus Energy, at 7 per cent less. The benefit of these fixes is that the price cap from September is currently predicted to increase, meaning opting for one of these fixes now could align you with the July price cap but start saving you substantial money in winter, reports the Express.

E. On Next also promises to guarantee a saving of at least 3 per cent less than the price cap, meaning you can switch to it with certainty that you will always beat the cap. However, with other options, there's a risk the cap could drop and you'd end up paying more than the current rate.

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