Ovo Energy price cut puts supplier ahead of pack

With a £50 price cut, smaller supplier Ovo Energy has stolen a march on its bigger rivals, reducing its cheapest tariff to £921 a year - offering consumers a saving of £326 against the average UK energy bill of £1,247.

Ovo Energy is a new arrival to the UK energy scene, having only launched this year. Their new, competitive offering is closely followed by yet another small UK supplier, First Utility. The two newcomers are taking advantage of the recent drop in wholesale prices to undercut the "Big Six" UK energy suppliers.

The welcome price cuts offered by these aggressive new players are proving popular with UK households, tens of thousands of which are estimated to be switching energy tariffs every week. If Ovo Energy and First Utility maintain this pace, they could reach a million customers this time in 2010.

If you are worried about paying too much for your energy as winter approaches, you should compare energy tariffs now, to look for the best deal. Online tariffs in particular are attractive: although standard rates have remained largely stable this year, online deals have dropped by around 10 percent over the past 6 months. Just click here to compare energy tariffs now.