Ovo confuses consumers with new tariff rates

Which? Switch had alerted Consumer Focus, a consumer complaint agency, on the recent move by energy supplier Ovo to change both of its tariffs, leading to new energy consumers paying rates different from existing ones. Ovo had now updated its energy tariffs with new prices, while still not changing the names of each tariff.

Under the new Ovo tariff, existing customers will still pay the original rate, while newly signed consumers are charged with a much lower rate. The shift means that various customers on the same tariff will be charged with different rates, making it hard for Ovo consumers to determine whether they are getting the most cost-effective deals.

Alison Morrison of Which? Switch informed that for consumers to easily switch suppliers in the future, they need to see that the tariff name is the same with the price that they are paying. Multiple tariff prices under one name could lead to greater confusion among consumers.

Responding to Which? Switch’s concerns, Ovo informed that customers receive a monthly statement which clearly states their estimated yearly consumption. With no discounts and hidden charges to factor in, energy consumers can quickly compare Ovo’s tariffs with those of other energy suppliers.

But Jenni Lucas of Consumer Focus argued that with Ovo consumers being subjected to a multitude of contrasting rates under one tariff name, there is a possibility that they will unable to obtain correct price assessments in the future.  Consumer Focus had urged all energy comparison and switching services to hold talks with both energy regulator Ofgem and Ovo to come up with a solution to the problem.