Sainsbury’s is offering a valuable incentive for customers looking to manage household costs by switching their gas or electricity supply to its new Energy Track and Reward tariff. This tariff not only promises a two-year price guarantee that ensures bills will never exceed the Ofgem energy price cap but also rewards customers with thousands of bonus Nectar points. According to Sainsbury’s Energy, customers can receive up to 6,000 bonus Nectar points annually, 1,500 points awarded each quarter, simply by remaining on the tariff. Additionally, new and existing customers who commit to a 24-month fixed deal can earn 4,000 points per fuel, meaning dual-fuel households have the potential to collect up to 8,000 bonus points.

The benefits extend beyond energy savings. Sainsbury’s Energy customers on this tariff can also accumulate double or triple Nectar points when shopping in Sainsbury’s stores, accelerating the growth of their rewards balance for regular shoppers. A company spokesperson highlighted that customers "will never pay more than the price cap," regardless of fluctuations in the energy market, and that there are no exit fees for leaving the tariff. To qualify for the points, customers must provide their Nectar card number when signing up, and points typically appear within 30 days after the energy supply starts.

This offer forms part of Sainsbury’s broader strategy to combine energy savings with its popular Nectar loyalty programme, attracting budget-conscious consumers who appreciate rewards that can be redeemed across a wide range of products and services. Customers interested in switching must have a residential gas or electricity account with Sainsbury’s Energy, where their bill calculations include a standing daily charge plus unit rates for energy used, with applicable VAT and discounts factored in.

In a competitive energy market, Sainsbury’s Energy has a history of incentivising customers with Nectar points. For example, previous promotions offered up to 10,000 Nectar points for dual-fuel customers switching to a 2-year Fix & Reward tariff, which could be converted into Avios points, enhancing travel rewards. These earlier offers also included caps on the triple Nectar points earned on groceries, capping at 7,000 extra points annually for dual-fuel customers. This demonstrates Sainsbury’s ongoing commitment to bundling energy savings with its loyalty schemes to retain customers and stimulate cross-shopping.

Sainsbury’s Energy has also partnered with other energy companies like E.ON, providing additional environmental incentives such as up to £250 off home improvements, including solar panel installations and electric vehicle chargers. These measures can help households reduce energy costs further, with solar panel installations reportedly saving up to £713 a year on electricity bills.

While the Nectar points programme enhances customer engagement, it is important to note that Sainsbury’s has recently reduced the rate of points earned through its credit cards. From November, credit card holders will earn one Nectar point for every £2 spent, a decrease from two points per £1. However, this change does not affect the free Nectar card loyalty scheme used in-store, where customers continue earning one point per £1 spent at Sainsbury’s and partner retailers. This means that while credit card rewards have diminished, the incentive linked directly to Sainsbury’s Energy tariffs and in-store shopping remains robust.

In summary, Sainsbury’s Energy Track and Reward tariff offers a compelling deal for consumers seeking stable energy pricing and loyalty rewards. With a guarantee not to exceed the price cap, no exit fees, and substantial bonus Nectar points, the tariff appeals to those conscious of both budget and benefits. Coupled with ongoing promotions and environmental incentives, Sainsbury’s Energy is positioning itself strongly within the increasingly competitive UK energy market.