Ovo has announced a hike in its Pay Monthly Simpler (variable) tariff with effect from 10 January 2017. The company said it was “due to a steady increase in wholesale commodity costs for both electricity and gas.” It said, “Since 10 June, the forward price of gas has increased by 30% and electricity by 23%”.

Electricity unit rates will rise by 18%. The standing charge will fall by £10 per year on both gas and electricity, which the company said would align the variable tariff to Pay Monthly fixed tariffs.

Ovo said the headline price for a dual fuel customer on its Pay Monthly Simpler tariff will be £1,054 (up from £1,004).