OVO hits 500k customers in September 2015 following 300% growth in 2014
Company reports on investment in growth, industry innovation and senior team as it builds for 1m customers by 2017 and beyond
Secures £31 million Series A funding
The UK’s leading independent energy provider OVO this week surpassed half a million customers as it reported a year of surging customer and revenue growth in its 2014 financial statement.
Founded in 2009 as an alternative to the Big Six, OVO saw its customer numbers triple from 137,000 at the start of 2014 to 408,000 by year end, fuelled by a major brand campaign and a responsive hedging strategy that enabled it to offer highly competitive tariffs on the back of flat or falling wholesale gas and power prices.
Revenues in the period increased 91% from £171.7m at the end of December 2013 to £326.3m in December 2014. The costs associated with the extensive growth in customers (many of whom joined mid-year and had yet to contribute a full year of revenue), and related investments in OVO’s industry-leading service levels, staff and technology innovation, resulted in an anticipated loss for the year before tax of £37.3m (31 December 2013: £0.1m).
2015 current trading and outlook
So far in 2015, OVO has released a succession of disruptive, customer-focused innovations into the market including:
The UK’s first pay as you go energy app (PAYG+), consigning the antiquated meter key to history for a traditionally underserved part of the market
A groundbreaking Communities platform enabling local councils to offer better deals to disengaged customers by becoming energy providers
A successful challenge to Ofgem, allowing OVO to pay a 3% interest reward on customer’s credit balance
An aggressive Smart Meter rollout programme seeing the company become the largest installer across all of the independent suppliers with over 90,000 traditional meters converted to Smart
In August 2015 the company closed on £31 million of Series A funding from independent investment firm Mayfair Equity Partners. In September it announced the hiring of eBay’s Sarah Calcott to the new role of Chief Operations Officer.
“2014 was a significant year for our business, where we put all our effort into increasing our customer base. We have continued to invest in the twin engines of innovation and service ahead of growth, so that we can scale fast without compromising on any of the reasons why our customers love us” said CEO and founder Stephen Fitzpatrick.
“Being recognised as the first ever and only Which? recommended provider for energy in the midst of such high growth shows we’re getting the balance right.
“So far in 2015 we have hit the milestone of 500,000 customers whilst maintaining the pace of innovation, investing in making energy ever simpler and more effortless for customers, and continued to consolidate our systems, and further build our team in advance of the next phase of rapid growth.”
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, 3-5% 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: https://www.ovoenergy.com/terms
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: https://www.ovoenergy.com/ev-everywhere/terms
* OVO SolarStore (Beta), full terms and conditions: https://www.ovoenergy.com/ovo-solar-store/terms