Pommy retailer OVO Energy slashes prices shortly after Australian launch

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With barely a few months of operation under its belt on Aussie soil, OVO Energy has already cut its electricity prices and become a serious challenger to the country’s biggest players.

The UK-based energy company now has one of the cheapest electricity plans in New South Wales at the time of writing.

According to our database, OVO Energy’s annual costs fell by about 5% compared to its launch prices on the Ausgrid network in Sydney.

Its sole market offer, known as ‘The One Plan’, has no conditional discounts or bill credits, only low variable energy rates which now work out to a generous 18% off the Reference Price on the Ausgrid network.

OVO Energy Managing Director, Mark Yemm, put the price cut down to market conditions.

“The prices in the wholesale market have dropped dramatically in the months since our launch; turning out a lot lower than forecast / expected,” Mr Yemm said.

“Since we’re constantly reviewing our pricing to ensure it’s relevant and fair, we’re simply passing that saving from the wholesale market back to customers.”

In line with OVO Energy’s price cuts, Canstar Blue Editor-in-Chief, Simon Downes, suggested that falling wholesale prices should see other retailers move to remain competitive.

“Whilst OVO Energy is far from the first provider to drop its prices in 2020, it’s amongst the most notable due to where it has landed the company as far as price competitiveness,” he said. “This is a move I’d expect to see other retailers make fairly soon.

“OVO now sits comfortably as having one of the cheapest plans in NSW, a bold entry into the Australian market by anyone’s definition.”

Aside from low prices, OVO Energy also sets itself apart by offering an approach different to what Australian consumers are used to seeing in market.

Much like Powershop and Energy Locals, OVO Energy is 100% carbon neutral. The extra step this retailer makes, however, is in incorporating 10% GreenPower at no extra charge.

OVO Energy’s customers will also automatically receive “smoothed monthly billing”, where the same amount is paid every month. Whilst bill smoothing isn’t a new concept in itself, OVO’s unique twist is that it will pay customers interest on their credit balance.

“We’re focused on providing simplicity, transparency and fairness and this is demonstrated in both our pricing and our approach,” Mr Yemm said.

“If we see a way in which we can lower our costs, without compromising our service, we will.”

OVO Energy Pricing NSW

Here is OVO Energy’s The One Plan on our database for NSW at the time of publication. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Pricing below is subject to change.

Image credits: Taras Vyshnya/shutterstock.com

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