OVO Energy - the UK’s fastest growing energy company – is the first national energy supplier to offer monthly interest rewards to customers who build up a credit balance on their accounts, it was announced today, Thursday 17 June.
In a bid to give customers a fairer, more transparent deal, the newcomer to the energy market will credit customers with a reward equivalent to three per cent interest per annum.
Each time customers receive a statement – which is monthly or quarterly depending on what they have requested – the reward for the corresponding period will be automatically credited to their account. The scheme will come into effect from 1 July 2010.
Stephen Fitzpatrick, managing director and founder of OVO Energy, said: “A big driver behind setting up OVO was to give customers a better, fairer deal. But offering consistently competitive prices and doing our utmost to make sure direct debits are set at the right level isn’t enough. We think it’s only fair we pass on any interest we’ve earned on customers’ credit balances, and that we reward people for prepayment.”
One of the biggest sources of complaint within the industry is the setting of direct debit levels and companies holding customers’ credit balances. Consumer groups have long campaigned for energy companies to deal more fairly with customers.
Mr Fitzpatrick added: “To make sure it’s as fair and simple as possible, we’re offering monthly interest rewards rather than making a one-off calculation on an end of year balance, when customers are less likely to be in credit.”
Whether on a fixed or variable tariff, customers are more likely to build up a credit balance during the summer when households use less energy, and to draw down on that balance during the colder winter months as energy consumption increases.
Maria Wardrobe, Director of Communications for National Energy Action (NEA), the national fuel poverty charity, supports OVO’s scheme: “In encouraging customers to pay monthly this initiative is a welcome move. At NEA we know that budgeting for energy bills helps protect customers from falling into debt which is essential in the current economic climate.”
While not connected to the Bank of England’s base rate of interest, OVO’s reward rate will reflect market conditions. OVO’s reward rate is set until the end of 2010 and will be reviewed every six months thereafter.
The one cap on the scheme is that customers can only pre-pay for a maximum of one year’s energy supply.
Mr Fitzpatrick said: “Even as a relatively new company in a market place dominated by long established, larger players, we can set the standard in offering a fairer deal for customers. We put what customers want – cheaper, greener, and simpler energy - at the heart of what we do and we hope people will continue to vote with their feet and switch to OVO.”
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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.