Ovo offers fixed energy deal £50 cheaper than the price cap - but you'll have to be quick

Supplier Ovo Energy has launched a tariff which undercuts the July price cap - but it is only available for the next seven days.

It is an option for those who’d prefer a fixed deal from a large, well-known energy supplier.

Ovo’s deal is available through comparison website MoneySuperMarket*.

It works out at £1,670 per year for a household with average energy use – £50 cheaper than July’s price cap.

The savings could reach more than £100 over the year if the price cap rises again in October, as it is currently predicted to.

The latest predictions from British Gas, EDF Energy and Eon Next suggest October’s cap could shoot up from July’s level by as much as £70 annually for the average household.

Suppliers base predictions on their current view of wholesale energy prices and events affecting the energy market.

However, the situation can change quickly, so predictions should never be treated as locked in.

A worsening conflict in the Middle East is one factor that could push up energy bills as winter bites.

Kara Gammell, energy expert at MoneySuperMarket, said: ‘While many households would have been celebrating the recent energy price cap cut, the reality is any excitement will likely be short lived, with all expectations being that October will see yet another increase to energy bills across the country.’

> Compare energy deals with MoneySuperMarket*

MoneySuperMarket says Ovo's deal is the cheapest available on its website from a major supplier.

Those who sign up for MoneySuperMarket’s free Super Save Club will get £10 cash back to use on rewards and gift cards available through the scheme.

For new customers it’s also cheaper than going to Ovo directly. The equivalent fix available through Ovo is £1,680.

However, if you’re already an Ovo customer, its one-year loyalty fix works out as cheaper at £1,649 annually for the average household.

Keep in mind that the price cap and fixed tariffs don't give the maximum that you'll be charged for energy – they set how much you'll be charged by the kilowatt hour (kWh), so if you use more than the average household, you'll pay more.

Here’s how Ovo’s fixed deals compare:

You could potentially save even more money by choosing a less well-known energy provider.

Over the last few months, Outfox the Market has consistently topped our best-buy energy deals.

Earlier this week, annual savings of £145 were available for the average household against July's price cap.

It's always worth comparing energy deals* to see whether you could switch to a cheaper one, locking in savings for the next 12 months (or longer).