OVO has announced a new heat pump tariff called Heat Pump Plus that will cut running costs by 50% to 15p/kWh. However, there is a catch: the Heat Pump Plus tariff looks like it will be available to customers who buy a heat pump from OVO.
The Heat Pump Plus tariff is a two-tiered tariff, with a separate rate for heat pump usage and overall household energy consumption. The Heat Pump Plus rate is 15p/kWh, while the standard rate is 28p/kWh.
OVO’s research has shown that 45% of the UK population would install a heat pump if running costs were 40% lower than the current average. The new Heat Pump Plus tariff meets this threshold, making heat pumps a more viable option for homeowners who are looking to switch to a greener form of heating.
In addition to the new tariff, OVO is also offering a Boiler Upgrade Scheme (BUS) grant of £7,500 for customers who install a heat pump. This means that the upfront cost of an OVO heat pump starts at £500.