Ovo and Octopus sign deal with Monzo

Challenger energy brands Ovo and Octopus Energy have partnered with mobile-based bank Monzo to allow customers to switch via the banking app.

Monzo says its new feature aims to address the issues that are stopping people from switching to a “fairer energy tariff”.

The bank’s customers are only able to switch to either Octopus or Ovo and customers can pay their energy bills through their Monzo bank accounts.

The app will send customers a reminder when they are able to switch their tariff or supplier.

According to Ofgem’s latest State of the Energy Market report which was released in October last year, more than half of customers are on poor value default tariffs.

Furthermore the report found that the difference between the average standard variable tariff (SVT) price of the six largest suppliers and the cheapest market tariff was on average £320 between June 2017 and June 2018.

Greg Jackson, chief executive of Octopus Energy, said: “We love working with innovators in other sectors to bring fair pricing to customers who’ve been ripped off for too long.

“Banking and energy have both failed to deliver value and service, but in energy the issue is even more urgent because we need to tackle climate change.

“Octopus is determined to make energy both cheaper and greener, and we are thrilled to be working with Monzo to spread that message.”

Adrian Letts, chief executive of retail at Ovo Energy, added: “We’re delighted to partner with Monzo and join their energy marketplace. Digital is at the centre of our offering for customers and has been right from the start.

“With more people using smartphones to access everything in their lives, monitoring and controlling your household energy use should be no different.”

Tom Blomfield, co-founder and chief executive of Monzo, said: “We want to help take the hassle out of finding a fair deal, and switching suppliers when you do.

“By working with Octopus Energy and Ovo Energy, Monzo customers will be able to conveniently access fair energy tariffs that come with quality customer service.”

Rik Smith, energy expert at Uswitch.com, said while helping customers to switch and save is “always a positive step forward”, limiting choice can be “detrimental”.

He said: “Giving consumers more choice and helping energy customers to switch and save is always a positive step forward.

“But the real value of this service being offered by banking apps will come when consumers are able to choose from the wider market and not just a few suppliers.

“Consumers shouldn’t be lulled in by smaller savings when they could cut their energy bills by up to £300. Choice is vital in securing the best deal, so limiting this can be detrimental.”