Ofgem gives go-ahead for first local energy suppliers

30 JANUARY 2015: Leading independent energy supplier, OVO Energy, has been granted permission by industry regulator, Ofgem, to launch several additional energy tariffs under its pioneering new programme ‘OVO Communities’.

The ground-breaking OVO Communities initiative aims to bring hundreds of new, independent, local suppliers into the energy market, driving competition, bringing down bills and radically redressing the imbalance of power between energy companies and their customers.

Like all energy retailers, OVO is currently limited to just four customer tariffs. However Ofgem has today announced that OVO has been granted three ‘derogations’ from this rule. This allows the supplier to give four extra tariffs to each of its first three local authority and community group partners. These groups will then be able to choose and set their own local tariffs, ensuring local residents benefit.

Stephen Fitzpatrick, CEO of OVO Energy said: “The energy retail industry is crying out for change and innovation and the regulator’s decision on this shows what is possible. We’re very excited about the launch of these first projects which can now get started.

“We’re looking forward to helping bring bills down for communities across the country. We don’t’ want to be the Big Seventh, this is about giving power back to them.”

Since launching the OVO Communities brand last year, OVO have been in contact with over 300 local organisations from across the UK. The OVO Communities’ partners that will benefit from this decision are Cheshire East Council, Plymouth Energy Community and Community Energy South.

Craig Morley, MD of OVO Communities added: “We have a fast-growing list of existing partnerships (including three councils) now formally confirmed, and we are getting ready to launch their supply businesses. The pipeline is getting longer every week.

“This decision will help ensure more customers get access to more choices and better value, in a way that meets the needs of local people.”


Media contacts:

Jessica Lennard | Head of Corporate Affairs | 07786025652


The derogation will allow OVO to introduce up to four additional tariffs for each of the community partnerships, enabling the same temporary provisions of SLC 31D that apply to suppliers with white labels in the market. For further information please visit

Launched in April 2014 by Secretary of State for Energy, Ed Davey MP, OVO Communities is an out-of-the-box tool kit for local groups (including councils, housing associations and community groups) to directly supply energy to local residents.

Expected savings from the Plymouth partnership are approximately £1 million. For Community Energy South, savings of up to £2 million are expected, whilst residents in Cheshire East could save up to £300 each by taking part in their scheme.

OVO will apply the ‘cheapest tariff’ messaging across both brands – OVO Energy and OVO Communities – ensuring customers of both are informed about the availability of a cheaper tariff regardless of which organisation they initially signed up to.

About OVO Energy

OVO Energy, Britain’s 10th fastest-growing private company - is one of the leading independent suppliers in the UK retail market. Since it entered the market in 2009, it’s grown to 430,000 customers and created over 700 jobs.

OVO’s guiding principles are simplicity, transparency and fairness in all of its operations: make the energy industry easier for consumers to understand and make sure prices reflect the actual cost of doing business so customers know they’re getting a good deal.

For more information, please see:

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, 3-5% 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 2/3/2018, 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 22/11/2017, 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 2/3/2018.“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.

OVO Interest Rewards: Interest Rewards are paid on credit balances of customers paying by monthly Direct Debit. It is calculated at 3% in your first year, 4% in your second year and 5% in your third year (and every year thereafter) if you pay by Direct Debit. Interest Rewards are paid monthly based on the number of days you’re in credit and the amount left in your account after you’ve paid your bill. Full 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.

uSwitch's Energy Supplier of the Year 2017: 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.

* EV - Everywhere, full terms and conditions:

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

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