Spark calls an end to standard tariffs
May 22, 2018 by Spark Energy
Spark Energy has ended standard variable tariffs for customers ending their fixed deal.
The multi-utility supplier focused on the home move market has written to customers whose fixed tariff is ending to let them know that, if they do not make an active choice about their next tariff, they’ll have the comfort of knowing that their prices are guaranteed for another year as they will roll onto a further 12-month fixed price tariff with no exit fee.
Spark CEO, Chris Gauld, said: “I’m really pleased that we’re able to give our customer certainty on their prices at a time when wholesale prices and rising environmental costs are having an impact on bills.
“We surveyed our customers to ask them their preferences for new tariffs and over 80% of them said that they’d prefer to fix their rates, with most looking for a 12-month fix.
“We founded Spark on the belief that energy could, and should, be simpler for home movers and we’ve built a company that specialises in providing energy during and after that stressful event in our lives. These customers have been by-passed by traditional suppliers and we’ve worked hard to help them get the most from their supplier from inheriting lower prices as default to getting proactive help and rewards for choosing tariffs and products that save them time and money and crucially, understanding their rights and options in a fiercely competitive market . With a young, busy demographic that means investing in tailored products and services all delivered at the right time through great technology.”
In October 2017, Ofgem enabled suppliers to roll a customer, who has come to the end of their fixed term contract, onto another fixed-term tariff.
Gauld continued: “The changes we’ve made benefit customers who’ve already made a choice. Ofgem changed the rules in October allowing us to make sure that customers who’ve made a positive choice in the past don’t have to worry about slipping back onto variable tariffs until they get round to reviewing their options. We know that everyone is busy so we’re really happy to be making it a bit easier for them!
“The challenge is now encouraging customers who haven’t engaged to do so. We’d love to help more customers make those positive choices that save money and take very little time. Over this winter we wrote to our entire variable tariff customer base offering our fixed deals and incentives for switching over.
“In the first half of 2018 we’ve launched a number of digital platforms for customers that are helping to simplify how they make choices about their energy, manage their account, set up essential utilities and engage with us. So the change to the end of our fixed tariffs is just the beginning of things to come in doing more to help home movers get a great deal on their utilities.”