Those whose budget management has been heavily stretched may be wondering if April has arrived already with news that an energy firm has cut its prices.
However, this particular story is true. Ovo Energy is to trim its dual fuel tariff from today (January 6th) by five per cent, which it says will mean the typical deal is now worth £1,060.77, compared with the average for the big six, which is £1,194.
Ovo managing director Stephen Fitzpatrick said: "Due to a recent decrease in wholesale costs, we are able to respond and pass on these savings to consumers."
For many consumers, who might not even have heard of Ovo, such news may bring optimism that prices will come down elsewhere. Managing money may not be quite so difficult if this is the case. Moreover,it may be noted that Ovo is not unique: Co-operative Energy also recently trimmed their costs, albeit by only three per cent.
Commenting on the move, energy expert at uSwitch Tom Lyon said the move had "laid the gauntlet down to the big six suppliers".
He added: "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 as all eyes will now be on them."
However, even if there are reductions, a five per cent cut will not fully counterbalance the increase imposed by the big six last summer. Director of energy at Consumer Focus Audrey Gallagher noted: "The average customer bill is up by 14 per cent since last summer, leaving many household budgets increasingly stretched."
For consumers who are struggling financially, a budget planner may be an invaluable tool. This can help ensure householders monitor where their money is going, what it is spent on and cut out waste.
The first priority has to be essential bills, so for people who are short of cash after paying these, ensuring the rest of the money is used wisely and sparingly is vital.
Should energy bills now fall a bit, the job could be made a bit easier. But as prices will still remain substantially higher than they were this time last year, the importance of being careful with money will remain.
