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Economy Energy is a medium-sized supplier that says it specialises in prepayment meters and pay-as-you-go energy. Is it the best supplier for you?
Economy Energy stopped trading on 8 January 2019. Ofgem appointed Ovo Energy to take on its 235,000 customers. If you're a customer, scroll down to find out what you should do and know your rights if your energy firm goes bust.
Just a week previously Economy Energy was banned from taking on any new customers until it resolved customer service issues.
Economy Energy was set up in 2012 to ‘level the playing field for pre-payment customers’. It doesn’t only supply households with prepayment, though. Economy Energy currently offers several tariffs, including ones specific to prepayment and smart meters.
Plus prepayment meter customers can now top up via app, online by text message and phone, as well as at PayPoints.
It has grown fast and now supplies more than 250,000 customers. Last year it launched Economy Mobile, which sells pay-as-you-go mobile contracts.
Will Economy Energy give you the best energy deal? Use Which? Switch to compare electricity and gas prices to find the best deal for you.
Economy Energy customer score
Economy Energy came 28th out of 31 energy firms rated by 8,761 members of the public in the annual Which? customer survey.
Only Extra Energy, Spark Energy and Npower customers rated their suppliers worse.
Economy Energy customer
‘I’ve just changed to Economy Energy from EDF and it's much cheaper.’
Economy Energy score breakdown
The graphic below shows the breakdown of Economy Energy’s scores from our survey.
Scroll down to find out why Economy Energy is being investigation by energy regulator Ofgem.
You can find out how Economy Energy compares with other small energy suppliers – as well as the Big Six – see the results of our best and worst energy companies.
Which? verdict on Economy Energy
Economy Energy’s customer score lower than the average (which is 55%) for energy suppliers in England, Scotland and Wales, and it narrowly avoids the bottom three positions in our energy customer satisfaction survey.
Customers rated it good value for money. None of the other energy companies ranked in the bottom 10 overall equalled this.
Economy Energy customer
‘The bills are not as much as with other companies.’
Economy Energy customer
‘I queried the fact that they had taken two sets of payments - now I use less gas, the bills should be less. They have not really resolved this issue.’
Economy Energy had one of the lowest rates of resolving complaints in the first half of last year. It solved just 11% of complaints within two days in the first three months of 2017, and a quarter in two days in the next three months. The best companies manage to resolve more than three quarters.
When we tested how fast it responded to emails in our energy company customer waiting times investigation, we couldn't give it a time as we didn't receive a response to any of our 12 emails. When we phoned, it took 2min 44sec on average to answer, which compares reasonably well against other firms.
Pros: It’s rated good value for money by its customers, and does offer some cheap deals
Cons: One of the slowest energy companies to resolve complaints
Economy Energy electricity sources
Economy Energy in the news
January: Economy Energy stopped trading on 8 January 2018, Ofgem announced. On 11 January regulator Ofgem announced that Ovo Energy would take on its 235,000 customers.
Customers who pay by direct debit will be supplied by Ovo. Customers who pay-as-you-go will be supplied by its prepayment brand, Boost.
Ovo and Boost will be in touch over the coming days. When they contact you, give your meter reading.
You can either ask to be put on Ovo or Boost's cheapest deal, or use a price comparison website, such as Which? Switch, to find the best deal for you. You cannot be charged exit fees for leaving.
On 4 January, Economy Energy was banned from taking on new customers for three months by regulator Ofgem.
Economy Energy was also forbidden from asking customers for one-off payments and increasing customers’ direct debits.
It must resolve issues with its customer service, billing and payments, and refunds processes or ultimately risk losing its license.
November: Economy Energy is being investigated by Ofgem over its failure to make Renewables Obligation payments. Suppliers which don’t source the amount of electricity from renewable sources that Ofgem requires have to pay into a fund. Economy Energy missed the most recent payment deadline of 31 October. If it doesn’t pay, Ofgem can issue a final order to make it pay.
May: Energy regulator Ofgem alleges that Economy Energy, along with E Energy and a consultancy firm, breached competition law.
It says the two energy companies agreed not to target each other’s customers through face-to-face sales between ‘at least’ January and September 2016. To do this, they shared customer details via software provided by consultancy firm, Dyball Associates.
This ‘prevented, restricted and distorted competition amongst energy suppliers’, Ofgem claims.
The Competition Act forbids companies from setting up ‘anti-competitive agreements’. Ofgem’s enforcement decision panel will now examine the case.
April: Economy Energy launched Economy Mobile, a pay-as-you-go mobile business which it says rewards customers with free monthly bundles. It’s available to non-customers, too.
March: Economy Energy made PayPoint’s online platform available to customers so they can top-up prepayment meters online, via app, text message or phone call, as well as in local shops.
September: Energy regulator Ofgem begun investigating Economy Energy’s marketing and telesales practices after concerns were raised about how it recruits new customers. This investigation is still ongoing.
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