OVO Energy has made a submission to the Department of Energy and Climate Change consultation on the secondary legislation for the Green Deal and agrees with many of its proposals.
We have chosen to focus our attention on the Green Deal principally because we believe this to have a greater impact on the energy market and if implemented incorrectly it could have a negative impact on consumer trust in the industry.
OVO’s Managing Director Stephen Fitzpatrick believes that the Green Deal presents a positive opportunity for consumers to be more energy efficient and for suppliers to support them in doing this. However, he has a number of concerns about the proposals, which have the potential to negatively impact market competition and levels of consumer trust.
There are currently low levels of trust in the energy industry and so any new initiative, including the Green Deal scheme, needs to reassure consumers that their investment is safe and right for them. To ensure this:
We have major concerns about the cost to suppliers of administering the scheme, both for the initial set up (we would expect to build a new piece of software to manage the flow of data) and on an on-going basis. The proposal of £3 per year per plan is significantly lower than the costs we expect to incur and although the opt-in threshold would appear an appropriate measure to shield smaller suppliers from the actual costs required, there is a commercial and competitive disadvantage for those who fall below it because they may have no option but to turn away business as they cannot afford to offer the scheme. We therefore believe that this initiative has the potential to discourage competition and create another barrier to entry and growth for smaller suppliers.
Finally, we are calling for clarity on which organisation will administer the Green Deal.
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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.