Archive for January 7th, 2012
Ovo Energy cuts fixed energy prices
Ovo Energy, the privately owned energy supplier, has announced plans to pass on falling wholesale energy prices to customers.
The cut follows a similar move by rival independent supplier, Co-operative Energy, which slashed its annual dual fuel price by £35 last year, and puts pressure on large providers which have so far failed to readjust their tariffs in line with lower wholesale prices.
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Ovo’s decision to reduce dual fuel prices by £55 makes it the second most affordable supplier on the market, with an average annual energy bill of £1,061. However the deal is only available to new customers and those who are renewing existing contracts.
“The fact that the Co-op had cut its prices could be shrugged off, but now that Ovo has followed suit the big six will be feeling the pressure,” said Tony Lyon, energy expert at comparison site u.Switch.com.
Stephen Fitzpatrick, Ovo Energy’s managing director, said: “Due to a recent decrease in wholesale costs we are able to respond and pass on these savings to consumers, thereby giving them a cheaper and simpler alternative to the big six.”
Gas and electricity bills have risen more than six times faster than household incomes since 2004, with the average customer paying up by 14 per cent more than they did last summer, according to Consumer Focus, which called for the rest of the industry to follow’s Ovo’s lead.
“This is a market fundamental which must be reflected across the sector if wholesale costs continue to fall,” said Audrey Gallacher, director of energy at Consumer Focus. “The further the whole price falls, the greater will be the clamour for others to follow Ovo’s lead.”
Energy companies have faced political pressure to cut prices following reports from the regulator that suppliers now earn an average profit per customer of £125, up from £15 earlier in the year.
EDF was the last of the big energy companies to raise its prices, adding around 19 per cent to all household bills. E.ON’s recent price hike has pushed the average bill up £232 to £1,293, while British Gas customers currently pay an extra £256, followed by Scottish & Southern Energy’s average tariff, up by £227 in 2011.
The big six cited rising wholesale costs in 2011, driven by the Japanese earthquake and ongoing trouble in the Middle East, for the price rises. Although wholesale costs have since fallen, companies buy energy in bulk, and in advance, meaning that customers are still feeling the knock-on effects of previous pressures.
However, Scott Byrom, energy manager at Moneysupermarket.com, said the spotlight was now shining on the big six to pass on the fall in wholesale costs.
“Now is the time for all of the energy giants to reflect these savings in customers’ bills,” he added.
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GMG expands operations in Latin America
GMG has appointed Saul Arana as Latin America technical manager, expanding its operations in the area.
Arana will report directly to Paulo Monteiro, business manager, Latin America, and closely integrate with the GMG Americas technical support group. He will be responsible for all activities dealing with technical service for GMG software – including training and support for dealers and customers – as well as organize all technical presentations and translations of technical materials for Latin America.
‘GMG is very fortunate to have an exceptional technical expert such as Saul Arana on our staff. He has the expertise and leadership skills, as well as years of experience with GMG and other color management tools. Saul is an extremely important resource for all our dealers and customers throughout Latin America,’ commented Monteiro. ‘GMG Latin America integrates many functions with GMG Americas – such as order processing and warehousing, but the addition of Saul Arana allows us to make more specific product and service centric decisions that best serve our customers in Latin America.’
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