In an open letter, Stephen Fitzpatrick, Founder and CEO of OVO Energy tells the Competition and Markets Authority (CMA) that today’s market is failing energy customers.
“Millions of people, many of them vulnerable, are being punished for their loyalty, paying hundreds of pounds more for their energy than they should ” said Fitzpatrick
“This money is being used by the Big Six suppliers to hook in new customers with loss-leading tariffs. It’s a terrible way to treat customers, destroying at their expense.”
The letter continued; “The situation is worsened by too many complex rules and regulations, which do little more than hold back nimbler, more customer-focused companies from competing.”
The independent supplier strongly believes in three solutions to make the energy market work better for everyone.
Fair pricing: Energy suppliers’ prices should reflect underlying costs. Suppliers should be stopped from overcharging loyal customers or running loss-leading tariffs that damage competition.
Simple Regulation: Regulation based on clear principles, with the priority being to avoid customer harm.
Protect the vulnerable: A regulated, annually-set social tariff that stops the most vulnerable customers from being exploited
Stephen Fitzpatrick commented:
“The CMA has a unique opportunity to repair the energy market for good.”
“For too long now the assumption has been that the CMA needs to break-up the Big Six, abolish vertical integration and fix the wholesale market.
“These have always been red herrings. It’s not the size of the Big Six that’s the issue. It’s the way they exploit their most loyal customers, charging what they think they can get away with when the customer isn’t looking.”
The CMA is expected to release its provisional findings on its Energy Market Investigation next week. OVO is the first energy supplier to publish its full Remedies Paper ahead of this.
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OVO Energy Ltd, registered office 1 Rivergate Temple Quay Bristol, BS1 6ED, company no. 06890795 registered in England and Wales, VAT No. 100119879
Additional terms and conditions
Please see below for full terms and conditions on 33% renewable electricity, 3% interest rewards, exit fees and saving claims.
1Monthly cost - Representative monthly direct debit costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying in advance by direct debit, including online discount. All rates correct as of 23/08/16, but may go up or down.
2Weekly cost - Representative weekly costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas). All rates correct as of 23/08/16, but may go up or down.
3Pay Monthly Savings are based on the average estimated annual costs for new PAYM OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
4Pay As You Go Savings are based on the average estimated annual costs for new PAYG OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
We include almost twice as much renewable electricity as the national average: At least 33% of electricity in all of our tariffs comes from renewable sources. The national average, according to Ofgem as at March 2014 was 16.7%. For more information please visit this page.
33% of your electricity comes from renewable sources: 33% renewable electricity as standard as of 1st April 2015. Renewable electricity is generated from wind, solar, geothermal, wave, tidal, hydro, biomass, landfill gas, sewage treatment plant gas and biogas.
3% interest: Calculated at 3% per year, paid monthly based on number of days in credit and the amount left in your account after you’ve paid your bill. OVO Interest Reward is capped at 12 times the amount of the current direct debit amount and is available to customers paying by advance direct debit. Terms apply: http://www.ovoenergy.com/terms/
95% of new customers save when switching to OVO: Based on all new customer signups between 01/02/2016 and 31/07/2016
94% of surveyed customers would recommend us: OVO conducted a survey of their customers in between 1st January 2016 and 15th April 2016. Out of 15,312 customers who responded, over 94% rated OVO 6+ when asked 'how likely would you be to recommend us to a friend and family, on a scale of 1 to 10.
Britain's top rated energy provider: Britain's top rated energy provider in the Which? 2015 satisfaction survey. Survey conducted in October 2015. Awarded in January 2016.