MSE News: Ovo Energy to take on Economy Energy's 235,000 customers

MSE_Andrew

Ovo Energy has been appointed by the energy regulator Ofgem to take on Economy Energy's 235,000 domestic customers, after the firm stopped trading earlier this week...

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'Ovo Energy to take on Economy Energy's 235,000 customers'

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wavelets

Official link from Ofgem here:

https://www.ofgem.gov.uk/publications-and-updates/ofgem-appoints-ovo-energy-take-customers-economy-energy

wavelets

Ovo Energy will absorb all of the costs of honouring customers’ credit balances and the migration of customers.

Hope Ovo have some deep pockets if it's confirmed that Economy Energy customers are owed £300 - £500 each as many on here claimed the day they ceased trading.

jk0

wavelets wrote: »

Hope Ovo have some deep pockets if it's confirmed that Economy Energy customers are owed £300 - £500 each as many on here claimed the day they ceased trading.

Be interesting to see if Ovo accept the change over readings we provide, or come up with their own in order to recoup the loss.

Consumerist

If you'd left Economy Energy prior to it stopping trading and are owed credit, this will also be honoured, and you will be contacted directly about the refund by Ovo.

That will be a great relief for many too.

Given the reports of fake usage added to accounts, it might be good idea for customers to prepare to prove their actual usage.

gt94sss2

Just received an email from Ovo - they are moving EE customers onto the Ovo Energy Variable tariff (Simpler Energy)

https://www.ovoenergy.com/economy-energy

harz99

wavelets wrote: »

Hope Ovo have some deep pockets if it's confirmed that Economy Energy customers are owed £300 - £500 each as many on here claimed the day they ceased trading.

And as an existing OVO customer I hope those like me don't end up paying for the changeover in the long run with higher prices all round!

matelodave

I hope OVO dont take over Eversmart when they go bust.

OVO's electricity prices are horrendous at 5p/kwh more than Eversmart's it would cost me an extra £360 a year.

I thought Octopus were expensive when I got transferred to them when IRESA died but OVO makes Octopus look like a bargain.

A quick shufti on the comparison sites, shows that I can get 12 deals better than Octopus and 60 better than OVO so I suggest you start looking for a quick swap as soon as you can.

Hopefully you've all read your meters and downloaded your latest bills and statements so you've got some evidence of the state of your accounts when they turned their toes up.

wavelets

We went with Ovo about 8 years ago, shortly after they lauched.
Unfortunately, the quote we received at the end of our fixed period was not competitive, so we switched away and have never been back.

Don't get me wrong, we had no issues with Ovo expect the new prices and wouldn't hesitate to go back to them if they were again competitive.
But over the last 4-5 years, I don't even remember them being even on the radar for us.

I would urge those being switched to Ovo today to check now how Ovo compare to the competition. There must be a 'sweet spot' somewhere for them ... but I'm not sure it will be the average Economy Energy customer as they were certainly on our radar in recent years.
(I only speak as a credit metered customer)

If there's a cheaper alternative for you, get prepared to switch as soon as Ovo give you the nod.

Sterlingtimes

wavelets wrote: »

If there's a cheaper alternative for you, get prepared to switch as soon as Ovo give you the nod.

I have learned a lot about the contrivances that a smaller energy supplier could use to manage its cash flow:

[1] switch the customer from an agreed in term fixed price contract to a variable price contract in breach of contract;

[2] block a customer from switching for no good reason;

[3] stop credit refunds to ex-customers without explanation;

[4] continue to access to direct debits for ex-customers long after account closure;

[5] charge a double monthly direct debit at the outset of the contract;

[6] increase direct debits without good reason and without explanation;

[7] stop using customer readings and smart meter readings in preference for using inflated estimated readings;

[8] use inflated estimated readings as a means of increasing direct debits;

[9] making once off direct debit claims upon the customer's account;

[10] failing to cooperate with the Ombudsman;

[11] failing to follow a complaints process;

[12] failing to publish complaints statistics;

[13] failing to answer telephone calls and emails;

[14] removing social media communication;

[15] use an Internet link to refer to terms and conditions but then changing the terms and conditions to which the link refers; and

[16] refusing upward referral.

I am wondering whether the safest way of switching is firstly to select fixed priced switches only and secondly to select tariffs where direct debit mandates are not required.

Anthorn

We can only hope that OVO does a better job than Scottish Power is doing with the other EE.

It appears that customers of failed suppliers are being transferred to more expensive deemed variable tariffs and personally I don't see the point other than guaranteeing credit balances. A better way would be for OFGEM itself to repay credit balances and allow customers a switcheroo to wherever they want to go. It is after all OFGEM which provides licenses to these now failed suppliers.