Ovo Energy to Pay Interest to Pre-Pay Customers

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One of the UK’s newest energy suppliers, Ovo Energy, has announced that customers will be paid interest on any credit left in their accounts, from July 1st 2010.

We’re offering monthly interest rewards rather than making a one-off calculation on an end of year balance, when customers are less likely to be in credit.

One of the UK’s newest energy suppliers, Ovo Energy, has announced that customers will be paid interest on any credit left in their accounts, from July 1st 2010.

Unlike many energy providers, Ovo promises to pay the equivalent of 3% yearly interest on any credit customers build up. They will receive the reward automatically with their monthly or quarterly statement.

This could give average households an extra £30 a year.

Managing director and founder of Ovo Energy, Stephen Fitzpatrick, said: “We think it’s only fair we pass on any interest we’ve earned on customers’ credit balances, and that we reward people for prepayment.

“We’re offering monthly interest rewards rather than making a one-off calculation on an end of year balance, when customers are less likely to be in credit.”

If paying by fixed direct debit, customers are likely to be paying too much during the summer months when their houses use less gas and electricity. This money will eventually be used to cover any extra balance during the winter, but while in credit Ovo believes customers should benefit.

Under the new Ovo scheme, customers can pre-pay for up to a year’s energy.

Chris Eagle, energy expert at Energychoices.co.uk, commented: “It’s easy to see why Ovo is doing this – it benefits them if customers pre-pay and manage their accounts by direct debit, so Ovo is trying to encourage that.

“But this move also really benefits customers – if their accounts are in credit, it’s only fair that they should earn interest. We hope that Ovo’s cheap energy deals and schemes like this will be seen as serious competition by the bigger suppliers, and hopefully interest on credit balances will become the norm over time.”

About Energychoices..co.uk

Energychoices.co.uk was launched in 2005 and allows users to compare energy prices.

Energychoices.co.uk is part of the Consumerchoices.co.uk group of websites. Consumerchoices.co.uk provides news, guides and expert advice to help customers save money on all their household bills.

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Andy Williams
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