The OVO 3% Interest Reward
By OVO Energy Thursday 11 December 2014
From day one, our mission has always been to try and restore trust in our industry. We believe that as a minimum, energy customers should be treated fairly, given great service and offered a product that presents real value for money. We also believe in giving our customers something back whenever we can.
That’s why we’re really pleased that energy regulator Ofgem has just given us the official go ahead to continue paying interest on our customers’ credit balances. We think it’s absolutely the right thing to do and we’re pleased that we were able to constructively work with Ofgem to deliver a result that works in the best interests of our customers.
We also think things should be really simple to understand, so we want to make sure we clearly explain how the 3% Interest Reward works.
It works a bit like the APR on a financial loan and as we all know, it can be a little tricky to work those out.
First off we estimate how much gas and electricity will think you might use during the year and then split that into 12 equal payments. That’s your direct debit amount.
We then work out how much energy you use each month (by using your meter readings if you’ve submitted them or by estimating the amount of energy you’ve used) and calculate your bill based on that.
Our 3% Interest Reward is then automatically paid on your remaining account balance (as long as it’s in credit) after we’ve received your payment, up to the current maximum credit balance for the Interest Reward shown in our Energy Charges list.
We calculate the amount of Interest Reward that you receive first taking the number of days from the day we send you your statement until the date your next statement is due. We call that your billing period.
We then divide the number of days in your billing period by 365 (so that we get the correct annual ratio for the 3%)
We then multiply that amount by three percent
The final step is to take that number and multiply it by the amount of credit you have in your account, up to the current maximum credit balance for the Interest Reward shown in our Energy Charges list.
Over the next few weeks we’ll be launching a whole host of new video content and one of these covers how we calculate our 3% Interest Reward. In the meantime, if you want to learn more about this then take a look at no.11 of our terms and conditions.
In the meantime, happy earning!