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Ovo appointed new supplier for Economy Energy customers

Eleanor Newis
Jan 24, 2019


Ofgem announced Ovo Energy will take over Economy Energy’s customers.

The UK’s energy regulator, Ofgem, has chosen Ovo Energy to be the new supplier for the 235,000 customers left hanging after Economy Energy went bust.

Ofgem said that it had completed a competitive process to find the best deal for Economy Energy’s former customers.

Ovo Energy will honour all the outstanding credit balances for Economy Energy’s consumers. This includes money owed to existing and former customers of Economy Energy. It has also stated that the company will be offering a competitive tariff.

Warm Home Discount customers (those living in fuel poverty who receive financial support from energy firms) who have been approved by Economy Energy will still receive their benefits from Ovo Energy.

The supplier has also agreed that it will be absorbing all costs of honouring consumers’ credit balances, and also the migration of peoples’ tariffs.

Energy supplies will continue as normal and no one will lose out on energy usage. The customer’s switch to Ovo energy occurred on the 12th January and the tradition will be overseen by Ofgem.

Customers who have repayment tariffs are able to continue adding to their meters as normal and they are being contacted about this by Ovo Energy’s repayment brand, called Boost.

Some customers might wish to change their tariff or switch to a new energy firm. They have two choices — they can ask to switch to another Ovo Energy tariff, or they can shop around to find a better deal.

Ofgem has confirmed that if consumers do decide to switch, they won’t be charged any exit fees.

The regulator’s director of future retail markets, Philippa Pickford, said:

‘I am pleased to announce we have appointed Ovo Energy, which will offer Economy Energy’s customers a competitive tariff for their energy.

‘Their credit balances will be honoured and their energy supply will continue as normal. Ovo Energy has agreed to absorb the costs of taking on these customers and outstanding credit balances, which means the extra costs will not fall on the industry or households.

‘Ovo Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to.’

This is the latest development in the story of small energy companies failing across the UK in the past 12 months. Many customers will be wondering what might become of the company they have chosen. 

To make sure you’re getting the best energy deal, and your firm is secure, use a price comparison site like A Spokesman Said to read up on all the tariffs available and check the Ofgem website for any updates on the companies.

 

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