OVO Energy achieves 7th consecutive year of double digit growth
30 September 2016
- Strong customer growth: Currently almost 700,000 customers. Total customers grew 38% in FY 2015 and increased 47% in the last twelve months to June 2016.
- Installations: 410,637 in the last twelve months to June 2016, increase of 49% y-o-y
- Record first half profits: H1 2016 profit before tax reached £30.4 million
- Leading in smart meter installation: 27% of OVO customers now have a smart meter - the highest proportion of any top 10 supplier
- World’s Best Energy Brand: Voted the best energy brand in the world at CHARGE, the world’s first energy branding conference
30 September 2016: OVO Energy achieved another successful period of growth during 2015. Customers increased by 38% and revenues reached a record £513 million. This momentum has continued into 2016 with first half revenues reaching £363 million or an annualised rate of £705 million. OVO achieved record profits of £30.4 million in the first half of 2016 following a net loss in full year 2015 of £31.7m, as its customer tenure improved and investment in being a first mover with smart meters paid off.
Stephen Fitzpatrick, CEO of OVO Energy said: “I am very proud of OVO’s exceptional customer growth and delivering its first meaningful profit. Since 2010 we have grown by 61% each year, won countless awards for customer service and in 2015 became the first ever energy company recommended by Which? Magazine.
We’ve done this by sticking to our values, treating our customers fairly and offering cheaper, greener, simpler energy. Our focus on smart technology is paying off and driving down costs, which we are passing on to our customers in lower bills. In short, our team has worked hard to build a smart and sustainable business. As we look ahead to the rest of 2016, we are committed to delivering fair and transparent pricing, more sustainable energy and an exceptional customer experience.”
Delivering smart solutions
OVO’s success has been achieved through our team’s focus on putting customers first, leveraging digital tools to enhance their experience and delivering consistently fair prices. With three-quarters of OVO’s customers managing their accounts online, providing easy-to-use digital tools has helped drive down administrative costs, reaching a record low of 15.1% of revenues in the first half of 2016. Smart meter penetration also increased to 27% or over 190k customers’ homes. The OVO trading team outperformed the Big Six energy suppliers in demand forecasting for the first time this year by leveraging proprietary tools and technology developed in-house.
Building a sustainable business
OVO’s commitment to renewable energy has led to a reduction in carbon intensity of 34% in 2015 versus the prior year. OVO was the first top 10 supplier to remove coal from its fuel mix in 2015. OVO’s Greener tariff is supplied by 100% renewable power and is one of the cheapest green tariffs in the market. All other OVO tariffs have at least 33% renewable power in their fuel mix, reaching 50% in 2015, as OVO continues to seek opportunities to increase renewables in the fuel mix.
OVO’s growth has proven sustainable at a compound average of 61% per year since 2010. OVO treats its customers differently, by having the smallest difference between fixed rate and variable prices of any major supplier. This means that no matter what tariff a customer is on, they know that they are being treated fairly. This is reflected in OVO’s net promoter scores which is one of the highest among competitors, consistently in excess of +50 compared to the average score of -6 for the Big Six.
Energy consumers’ expectations are shifting at a rate faster than most companies can keep up with. Energy companies that will thrive in a new digital environment will be those that have invested, not just in great systems, but in the capability and expertise to keep pace with the constant change around them.
For full details OVO’s 2015/16 annual report is available here.