Ovo Energy

OVO Energy logo
OVO Energy logo

Ovo Energy (styled OVO Energy) is an energy supply company based in Bristol, England. It was founded by Stephen Fitzpatrick and began trading energy in September 2009, buying and selling electricity and gas to supply domestic properties throughout the UK. It is one of over 15 smaller energy companies competing with the Big Six which dominate the market. As of June 2017 they have 680,000 customers, an increase of 10,000 over the previous year, representing a 2.5% domestic market share.[1]

Overview

The company sources its energy from various suppliers throughout the UK and from further afield as outlined below. Ovo Energy's headquarters are in Bristol. Ovo Energy is an independent supplier and is British-owned and privately backed.

Ovo Energy had been supplying gas and electricity to domestic customers since 2009, until April 2013, when the company also decided to enter the business energy market.[2] This sector of the UK economy is dominated by a number of larger companies such as the Big Six Energy Suppliers (UK).[3]

Electricity

The electricity Ovo Energy sources comes from various generators. Its two tariffs include 33% green electricity, (Ovo Better Energy—previously 15% green) and 100% green electricity (Ovo Greener Energy), coming from sources including wind farms in Gloucestershire and North Wales and electricity generated from the burning of landfill gas.

Gas

Ovo Energy sources its gas from the national grid.[4] The majority of the UK's gas is sourced from the North Sea; the rest comes from Norway, Continental Europe and some from further afield. Increasingly, gas is imported as liquefied natural gas (LNG), natural gas cooled to about −165 °C and compressed to make it easier to transport.

Energy market competition

The entry of Ovo into the UK supply market in 2009 was welcomed as it increased competition in a market that had been criticised for high prices.[5][6]

In October 2013 Managing Director Stephen Fitzpatrick appeared at a Parliamentary Select Committee in front of the Energy and Climate Change Select Committee (ECCC), when energy comparies were asked to justify recent gas and electricity price rises. Fitzpatrick explained to the committee that the 'wholesale gas price had actually got cheaper', contrary to the Big Six Energy Suppliers' assertions that international global prices of gas and electricity had consistently risen.[7]

Sponsorship

In 2017, Ovo Energy began sponsoring The Women's Tour and the Tour of Britain, the longest cycle stage races taking place in the UK.[8] In March 2018, OVO announced they would begin providing equal prize money for both tours.[9]

References

  1. ↑ "Key facts about OVO Energy". www.ovoenergy.com. Retrieved 9 July 2017.
  2. ↑ Mason, Rowena (7 July 2011). "Energy Secretary to help new suppliers break into market dominated by Big Six". The Daily Telegraph. London.
  3. ↑ http://www.newstatesman.com/politics/2013/10/new-questions-big-six-mean-milibands-price-freeze-will-continue-dominate
  4. ↑ "Our fuel mix - Where does OVO get its electricity from?". www.ovoenergy.com.
  5. ↑ "Martin Hickman: Suppliers run rings around regulators". The Independent. London. 7 October 2009.
  6. ↑ "Newcomers try to shake up the energy market". The Northern Echo.
  7. ↑ "Ovo Energy boss 'confused' by larger firms' price rises". BBC News. London. 29 October 2013.
  8. ↑ "New sponsor for 2017 Tour of Britain and Women's Tour". British Cycling. British Cycling Federation. 20 April 2017. Retrieved 21 April 2017.
  9. ↑ Cary, Tom (7 March 2018). "Women's Tour of Britain to be given prize money parity with men's race". The Telegraph.
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