Huge energy supplier introduces new monthly fee for thousands of customers
A MAJOR energy firm is introducing a new fee for some of its customers in just a few weeks’ time.
Ovo Energy, which has over four million customers, will begin charging a new £1.50 monthly fee for customers who receive paper bills from December.
Over the course of a year, customers will pay an extra £18 to keep receiving paper bills in future.
We understand that this makes Ovo the first major energy provider to charge a specific fee for receiving paper bills.
Ovo has said it will be writing to its current paper billing customers to let them know about the changes ahead of the December roll-out.
The letter will contain a QR code which will take customers to a form where they can opt to receive paperless bills going forward, meaning they won’t incur any extra charges.
However, some vulnerable customers will still be able to receive paper bills with no charge and won’t be asked to go paperless. These include:
- Customers on the Priority Services Register
- Customers who receive Adaptive Communications
- Customers who Ovo believes should be on the Priority Services Register
- Customers who may potentially be financially vulnerable.
It is understood that customers will be able to receive a PDF of their energy statement to save and use in situations where they’re required to provide proof of address.
The energy firm said the change will “help us to be more efficient and support our commitment to sustainability“.
But members of parliament have expressed concerns about the change and have called on Ovo to reverse it.
A motion tabled in parliament on November 6 said they “believe that such a fee is counterproductive as families continue to struggle with high energy costs, particularly in the run-up to winter, and further notes that such a change risks disadvantaging older and other vulnerable people”.
The motion had been signed by 14 MPs at the time of publishing.
A spokesperson for OVO told The Sun: “Like most energy providers, we already send digital communications to most customers.
“We still offer paper communications to anyone on the Priority Services Register, those who receive adapted communications, and anyone needing additional financial support.”
It is understood the majority of Ovo’s customers have now opted into paperless communications, but the firm did not confirm how many still receive paper statements when asked.
Customers can avoid the new fee by paying your Ovo energy bill over the phone by contacting the firm on 0330 303 5063, or by setting up paperless bills and paying by direct debit or via their online account.
Do other energy firms charge any fees?
The Sun asked other major energy providers British Gas, Octopus Energy, EDF, Scottish Power and E.On if they charge for paper bills and all confirmed they don’t currently levy these fees.
However, some other utilities companies charge fees for paper communications.
For example, most major telecoms firms charge a small fee to receive paper bills.
BT charges £3 for broadband customers who get a paper bill, which it says is to cover printing and postage costs, while TalkTalk charges £2.75 a month.
Some banks also charge a small fee for certain customers. For example, Lloyds Bank and Halifax charge credit card customers for paper statements, but not current account or savings customers.
Santander still offers free one-off monthly paper bills on request, but will charge for weekly paper statements.
To avoid paying fees for receiving paper bills, you can ask to start receiving paperless bills. Ask your provider to help set you up with paperless statements if you’re not sure.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.