London, 12 MAY 2015: OVO Energy, the UK’s only Which?-recommended energy provider, has today published new evidence to the Competition and Markets Authority (CMA), ahead of major findings expected in the next few weeks from the Authority’s energy retail market investigation.
The new evidence has found:
The gap between the Big 6’s average Standard Variable Tariff and their cheapest deals has widened in recent months. This underlines the existence of two energy markets; one for active switchers, and one where loyal customers are punished.
The Big 6 appear to be using their large blocks of inactive customers to subsidise protective, loss-leading tariffs. This damages competition.
When these protective tariffs disappeared from the market, independent suppliers’ share of switches rose from 21% to 50%. Since the protective tariffs have returned, this has fallen to 30%.
OVO has consistently called for reforms of the market to both drive competition and protect the most vulnerable customers. Speaking at the 1922 Committee’s Welcome Reception for incoming Conservative MPs (to be held in Parliament later today), OVO’s Head of Corporate Affairs, Jessica Lennard, is expected to say:
“With a price freeze off the table, some energy companies clearly think it's back to business as usual, profiting by overcharging and underserving loyal customers. What's needed now are strong signals from the new Government and the CMA that, far from letting the momentum slide, they're more committed than ever to fixing this market.”
CEO and founder, Stephen Fitzpatrick said: “We have always been clear the answer is more competition, backed up with effective regulation which protects customers from being ripped off. There's been a lot of uncertainty and delays, but we're now at a point where an ambitious CMA outcome and a new, pro-competition Government can deliver real change for customers.”
For more information please contact:
Shula Smith | Head of PR and Communications |www.ovoenergy.com | 01179303125 / 07863342317
OVO has been a vocal champion of greater fairness and transparency for UK energy customers, and has a proven track record of offering award winning customer service with consistently competitive prices.
In Ovo’s response to the Updated CMA Issues Statement we called on the CMA to:
Introduce a principle of cost-reflectivity, so that loss-leading tariffs are banned from the market;
Create a default social tariff for vulnerable customers to protect those not benefiting from competition.
Since Labour’s price freeze announcement in October 2013, OVO continued to price 'cost reflectively' (according to the real cost of doing business) rather than inflating its prices in anticipation of a Labour government. OVO estimates its cheapest Standard Variable Tariff offer was £77.44 (6.6%) cheaper over this period than the average Big Six Standard Variable Tariff.
Headquartered in Bristol, OVO Energy is one of the leading independent suppliers in the UK energy retail market and the 10th fastest private growing business in the UK.
OVO was founded in 2009 by Stephen Fitzpatrick who set out to create a better energy company.
OVO now has 460,000 customers, has created over 750 jobs and become the only Which?-recommended energy provider – ever.
OVO topped 10 of the 12 award categories at the 2014 uSwitch Energy Awards, (including value for money and customer service) and topped of the Money Saving Export poll for customer service, with 82% of customers giving us a ‘great’ rating.
OVO operates a policy of 'cost reflective pricing', making sure that customers are charged a price which reflects the real cost of doing business so that they can trust they are receiving the best deal possible.
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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.