The move will encourage more consumers to pay by direct debit, which will help them manage their energy bills better, plus will allay customer concerns over building up credit balances on their energy account.
Emma Bush, Energy Expert at uSwitch.com, said: "OVO is fast setting the pace for innovation in the energy market. This 'save as you burn' scheme is very welcome as it will
encourage more consumers to move to paying by monthly direct debit which will help them spread the cost of their energy better across the year. It will also allay consumer concerns over building up credit balances during the summer months when energy usage is lower.
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"The interest rate being offered looks fair and certainly far better than most consumers would get if the money was sitting on their current account. However, it's important that consumers don't let this blind them to the most important feature which is the price of the actual energy they are using. It's still important that consumers ensure that they are paying a competitive price and this will usually be by being on the most competitive online plan in the market.
"The scheme shares some similarity to ScottishPower's which offers £1 back for every £33 you are in credit above £100. However, this is capped at a maximum of £12. The clear thing from this though is that suppliers are starting to take consumers' concerns seriously. However, consumers also have to understand that being in credit to your energy supplier during the summer is actually a good thing and not something to avoid – the fat you build up on your account in the summer will help see you through the winter allowing your payments to remain broadly the same throughout the year."
(CD/GK)
