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    • telemarks
    • By telemarks 14th Mar 18, 1:00 PM
    • 163Posts
    • 118Thanks
    telemarks
    Energy comparison sites question - Credit interest
    • #1
    • 14th Mar 18, 1:00 PM
    Energy comparison sites question - Credit interest 14th Mar 18 at 1:00 PM
    Looking into the details of the latest recommend MSE deal from OVO I noticed that they give interest on credit balences. I can't say I've seen this on other suppliers.
    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.
    by OVO
    Looking at my "typicalish" usage, as my contract starts in summer I generally average £200+ in credit over the year. So I could get around £6 then £8 interest credited over the 2 year fix. Obvoiusly if your contract starts at the beginning of winter, then you will mostly be in debit, and so you won't get any interest.

    My question is, has this credit balence interest already been factored into the Price comparision sites such as MSE CEC? Or Not? (I'm guessing not, due the winter contract catch)

    Obviously the MSE CEC site already allows for the £25 reccomend a freind bonus as the "MSE cashback", where MSE is acting as your reccomendor and the money they get is what funds this site. But I'm wondering if this "credit interest" is currently a hidden discount avalible to some??
Page 1
    • matelodave
    • By matelodave 14th Mar 18, 1:10 PM
    • 3,542 Posts
    • 2,194 Thanks
    matelodave
    • #2
    • 14th Mar 18, 1:10 PM
    • #2
    • 14th Mar 18, 1:10 PM
    How can it be included when the credit amount that any customer may acheive will be variable, based on when you start a contract, how much energy you use and what your payments are.

    As it's probably only worth around £5-£8 a year it's not really worth making it a criteria for swapping suppliers although nice to have if you get it
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    • telemarks
    • By telemarks 14th Mar 18, 1:32 PM
    • 163 Posts
    • 118 Thanks
    telemarks
    • #3
    • 14th Mar 18, 1:32 PM
    • #3
    • 14th Mar 18, 1:32 PM
    How can it be included when the credit amount that any customer may acheive will be variable, based on when you start a contract, how much energy you use and what your payments are.
    Originally posted by matelodave
    Agree the amount is small, but it would be easy to get a average monthly % usage data, and the comparison sites already know your contract end date and your consumption. So its not beyond the whit of man to allow for Credit Interest in the comparison coding.

    After all with there often been only pence between suppliers yearly forecasts it might make a difference.

    Either way, I see no reason the credit interest should not be mentioned in the description of the suppliers tariff, even if it can't be reliably estimated..
    • Hengus
    • By Hengus 14th Mar 18, 1:35 PM
    • 5,752 Posts
    • 3,529 Thanks
    Hengus
    • #4
    • 14th Mar 18, 1:35 PM
    • #4
    • 14th Mar 18, 1:35 PM
    MSE now includes any shared referral fees in its total cost projection. It doesn’t include interest for the reasons stated above, and it doesn’t include any ‘friends and family’ discount that can only be obtained via a referral link using the supplier’s own website.
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