Retailer launches energy service

The company announced the launch of M&S Energy, in partnership with Scottish & Southern Energy (SSE).

Through the new scheme, customers will receive M&S store vouchers for their loyalty and as incentives to encourage them to reduce their energy usage. And SSE hopes that teaming up with the retailer will provide a novel way to access new customers.

Customers will pay on average £1,196 per year for the standard "dual fuel" tariff bill (including VAT) - the same as it costs at SSE.

The amount of electricity used by M&S Energy customers will be secured by SSE from large-scale hydro sources in Scotland.

Customers who reduce their annual energy usage by 10% in the first year will receive a £15 M&S voucher and those opting for paperless billing will receive an additional £10 voucher.

Dual fuel customers switching to M&S Energy will also get a £20 Marks & Spencer voucher on signing up and a further £10 voucher for each year they stay.

An M&S spokeswoman likened the partnership to the retailer's relationship with HSBC in setting up M&S Money, which offers products from pet insurance to travel money.

SSE spokesman Justyn Smith said the new energy scheme created "a new channel for reaching new customers". "It's the strength of the M&S brand which enables us to sell to customers we might not be able to get to."

M&S Energy launches in 16 M&S stores and online at www.mandsenergy.com on October 27. It will be extended to 62 stores nationwide by the end of November.