“We must share the blame for customers not getting a fair deal,” says energy boss.
OVO Energy has called for all energy companies to end the practice of offering teaser rates to new customers, as it releases new research showing 39% of energy customers don’t trust their providers because they can’t understand if they’re getting a fair deal.
The fastest-growing independent energy provider is already the only company to guarantee that new and existing customers get the same deal under its Fair Price Pledge – a measure aimed at restoring trust in the industry.
OVO’s managing director Stephen Fitzpatrick has admitted that all energy companies have a responsibility to provide fairer, more transparent energy tariffs that help customers easily identify the best deals.
“It is no wonder customers are put off switching suppliers. After navigating more than 300 available tariffs to find the best deal, most find that after twelve months they are right back where they started. All of us who provide energy have a job to help clean up this confusion,” he said.
It is common industry practice to offer new customers special deals and then sharply increase the rate after the first year. It is also common to prevent existing customers from signing up to the most competitive rates a supplier offers. Often the best deals are sold below cost, meaning existing customers actually end up subsiding new customers.
The resulting confusion has led to a breakdown in the consumer-supplier relationship, believes OVO. Its nationwide survey of 1000 energy users found that 52% of energy customers crave simple tariffs and 70% would have more trust in the energy market if the same deal was available to everyone.
OVO is committed to offering all customers the best rate it can. Under its Pledge, when a customer’s contract ends, OVO offers them the best current deal available, rather than rolling them onto a higher rate, as others do.
“Customers told us that they would trust the energy market more if everyone got the same deal,” explains Stephen Fitzpatrick. “We already offer new and existing customers exactly the same deal and today we are calling on the rest of the industry to do the same.
“It is time that the industry started listening to their customers and offered them what they’ve asked for – simple, straightforward and competitive energy. Customers shouldn’t have to keep switching energy companies; they should expect to be treated fairly by their own supplier.”
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.
uSwitch's Energy Supplier of the Year: OVO energy was voted and awarded 'Energy Supplier of the year' and best for: Overall Customer Satisfaction, Most Likely to be Recommended, Value for Money, Best Deal for You, Customer Service, Billing Services, Energy Efficiency, Meter Services, Online Services, Green Services and Transfer Process. OVO Energy scored a 96% customer satisfaction score.