Eversmart Energy launches ‘cheapest tariff on the market’

Energy supplier Eversmart has announced it has launched a tariff which will allow customers to pay for their energy bills 12 months in advance.

The Manchester-based supplier, which was founded in 2016 by Barney Cook, says its Family Saver Club tariff is £49 cheaper than the closest other fixed-rate deal, and £63 cheaper than the closest big six fixed-rate deal.

The tariff will cost £973 a year and is based on an Ofgem Greater Manchester average household usage (12,000 kWh of gas, 3,100 kWh of electricity).

Eversmart will give customers of this tariff 1 per cent interest on their monthly credit balances when they pay upfront for the year. For a typical customer this would be worth around £60 across the year.

The company does also allow customers to pay monthly.

Cook, chief executive of Eversmart, said: “We know this time of year can be expensive for families up and down the country, so hopefully our Family Saver Club is a way to help them plan finances better, get some money back on the energy they use, and ease the stress that can come with contacting their energy supplier.

“For a customer that refers two family members or friends, the annual savings could total nearly £400, a substantial sum of money for any family. The ‘Family Saver Club’ is all part of our mission to try and find a better way for our customers.”

In response to the announcement, Mark Dorman, energy and utilities editor at MoneySavingExpert said: “This payment essentially acts as credit – Eversmart will deduct what you’ve used each month from your balance.

“It will also carry out payment reviews every six months, so if you are using much more energy than expected, it will ask you to top up your account.

“There are less expensive variable deals. These start at a typical £921 per year, though prices can rise at any time with variable tariffs.”

Meanwhile energy expert at Uswitch, Rik Smith, said the imminent introduction of the energy price cap “may well lead to cheaper deals being removed from the market, so locking in a cheap fixed rate deal now to beat the cap trap is a smart move for UK households”.

He added: “The sticking point for many, however, is likely to be having to fork out nearly £1,000 upfront to take advantage of the credit balance offer – especially as we get closer to Christmas when family finances are under more pressure – although there is a direct debit option available at the same price which doesn’t pay interest.

“This is an assertive move by Eversmart, who are clearly looking to scale up and increase customer volumes.

“The pay-upfront model could be seen as a forward-financing move, but it’s unlikely they’ll be relying on just that method to fund their expansion.

“However, their success will probably come down to the usual things that matter to consumers: is the price attractive, do I trust this energy supplier, and do they run their business well?”