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Tariff Comparison Rates

By OVO Energy Thursday 20 November 2014

Research out today by Which? revealed that 95% of energy suppliers were unable to clearly explain what Tariff Comparison Rates (TCR) are. This is extremely disappointing news as we were one of the suppliers that failed this challenge.

So, first off, we’re going to start by explaining what the TCR is. 

The Tariff Comparison Rate is there to act as a price comparison guide for all energy customers. It breaks down the cost of an energy tariff by combining everything from the unit rates, standing charges, VAT and discounts into one amount and then dividing it by the average annual consumption figures published by Ofgem – the energy regulator.

The idea is to allow all tariffs to be compared against one another, by giving you a single price per kilowatt hour for the energy you use. It’s similar to an APR on a credit card or a financial loan.

As we mentioned before, the calculations are based on the average amount of energy that households use in the UK and this is where the TCR can start to be confusing.

This is how it’s calculated:

  • Multiply the unit rate by Ofgem’s average energy consumption figures

  • Add a year's standing charge

  • Take away any discounts that might be applicable

  • Add the VAT 

  • Finally, divide this figure by Ofgem’s average consumption figures 

  • This gives you the TCR in pence per kWh

Not exactly simple! But that’s why it’s part of our job to help explain it, and why we’ve now retrained all our customer care agents to make sure they can. 

It’s important to know how much energy you’re using to make sure you’re on the right tariff for you. As you can see, if you use more or less energy than the UK average then the TCR isn't going to be an accurate comparison for you. This is because you’re dividing the combined cost of your tariff (the bit where we add the unit rates, standing charges, VAT and then take away any discounts) by the wrong amount of energy used.

This is pretty tricky to write down so we’ve put it into a diagram...

Tariff Comparison Rate OVO Energy calculation
Here are some top tips for an easy switch:

  • Know how much energy you use – your supplier can tell you this if you give them a call. Or you should be able to find it on your last statement. OVO customers can just log on to MY OVO and there is a detailed view of their personal energy consumption by month 
  • Get an accurate quote – this means knowing how much energy you use, the details of the tariff you’re currently on and which payment method you prefer to pay by 
  • Know what’s on offer from each of the different suppliers, some tariffs come with top notch technology like smart meters or intelligent thermostats and others are 100% renewable electricity 
  • Online only – lots of suppliers offer discounts for going all online or paperless. Make sure you take advantage of these discounts if you can 

O​VO​ 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 06/06/2017, 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 06/06/2017, but may go up or down.

3Pay Monthly Savings claims: Saving based on the estimated annual cost of OVO Two year fixed tariff for a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying monthly in advance by direct debit, including online discount. Comparisons made against the average of the Big 6 standard variable tariffs with equivalent features. All rates correct as of 04/10/2017.“The Big 6” are British Gas, Scottish Power, SSE, Npower, E.ON and EDF.

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 for customers paying by advance direct debit.  The OVO Interest Reward is paid monthly based on   number of days in credit and the amount left in your account after you’ve paid your bill,  and the credit balance on which you can earn the OVO Interest Reward is capped. Terms apply:

95% of new customers save when switching to OVO: Savings based on the average estimated annual costs for all new OVO customers quoted through the OVO website, compared to their current supplier and tariff. Comparisons taken between 01/05/2016 and 11/10/16. Incl VAT.

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.

Which?: Achieved the highest score of 78% in the Which? Satisfaction Survey conducted in September and October 2016.

* EV - Everywhere, full terms and conditions:

* OVO SolarStore (Beta), full terms and conditions:

Pay Monthly unit rates

PAYG unit rates

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