Is EBICO best over 2/3 year period?

GPR · 5 November 2008 at 1:50PM

I have been with EBICO for the last 2-3 years and they have had relatively few increases-only 2/3 increases in that time?- was it 12% APRIL 07 OR 08 for gas? and then last month(October) something like 30% for gas-these are approx figures and cant remember data for electricity. I have info from ebico but not to hand just now.
Given market conditions and their policies they seem to be a very fair company and over say 2-3 years or so will they be the cheapest?-what does everyone think? I do not have prepayment meter and i am a low user with combined gas and electricity from EBICO costing in the region of £50 per month prior to this latest increase.Iam in North London.I know its easy to switch BUT is it worth it long term if EBICO is a fair company?
Hope many people will respond with their view on this.
Moneysaving expert appears to say that EBICO probably best for people on prepayment meters which i do NOT have and Southern Electric/gas say i am better on their EBICO rate than on their own rates-this was considering for gas anyway.(although with EBICO its southern electric and gas who supply you and send bills to you).This does not say however that cant get cheaper rates with another supplier at least in the short term.Who should i be with???

Premier_2 · 5 November 2008 at 2:38PM

Up until August last year, Ebico tried to maintain stable prices. Although that meant that there were few increases, it also meant they didn't reduce prices either (which most other suppliers did but I doubt many remember that)

Then in August last year ebico changed their policy to one of benchmarking SSE. Some people I think misinterpreted that to think that ebico would raise or lower prices exactly in line with SSE. I think history has shown it was supposed to mean they would review/change prices whenever SSE changed theirs; the exact timing and percentage change may (and did!) differ from SSE.

http://www.ebico.co.uk/html/x_archive.php

Cardew · 5 November 2008 at 4:00PM

There are several points to consider with Ebico prices.

Their lack of a 'standing charge'(either a daily charge or tier prices) make them cheaper for very low consumption. That price advantage quickly fades as consumption increases - particularly for electricity.

There are no discounts for dual fuel, payment by Direct Debit/standing order or paperless billing.

Pre-payment customers pay the same as Ebico's other customers.

In short they have a tariff structure where there is a cross subsidy between various customers.

You need to determine if you are providing a subsidy to other Ebico users(by paying more than you would from another supplier) or receiving a subsidy.

Obviously price is just one consideration, their ethos and straight forward tariff structure might make paying extra worthwhile for some people.

1carminestocky · 5 November 2008 at 4:59PM

Don't forget you may not be contributing to Ebico profits but you sure as heck are contributitng to SSE profits.

KimYeovil · 5 November 2008 at 5:11PM

All companies have tariffs where customers cross-subsidise each other. Non direct debit customers subsidise others' discounts; non direct debit customers subsidise bad accounts; medium and high consumers subsidise low customers NSC tariffs; very high customers are subsidised by everyone else ('cause tariffs are targetted at medium users); alternatively very high customers can subsidise other customers (it costs the same flat costs to receive 1,000kWhs down a pipe as it does to send 40,000 kWhs down it); all customers subsidise my seven months per year free fuel from cashbacks etcetera

As to Ebico, well, over the last two or three years they were a bargain (more than a third of the price of the competition for low users (and I do mean a third of not a third off)). Of course, there are difficulties for them now. But that was inevitable in a market where customers have no morals.

1carminestocky · 5 November 2008 at 5:25PM

Classic! I regularly give to charity but I like to know it's going to deserving causes. What I don't like doing is subsidising people who's personal circumstances I don't know anything about. Who's to say the ultra low users with Ebico are financially strapped? They may have a very good income but just happen to live alone.

KimYeovil · 5 November 2008 at 5:42PM

Similarly anyone who is rich enough to spend enough money on fuel to qualify for a social tariff is obviously a profligate wastrel who does not deserve the subsidy.

Premier_2 · 5 November 2008 at 5:57PM

1carminestocky wrote: »

Don't forget you may not be contributing to Ebico profits but you sure as heck are contributitng to SSE profits.

I'm not sure what your point is?

Of course Ebico are just a retail supply company. Accordingly they have to purchase the energy they sell from somewhere.

At least SSE are wholly British owned, unlike all the other major suppliers. Are you happy sending your money off to Spain? You are with Scottish Power aren't you.

The issue is that as the OP says, it's cheaper for them to purchase from ebico than from SSE, so who cares where the money ultimately goes?

Why not extend your arguement and suggest ebico customers are also contributing towards the profits of Royal Mail since that is who is used to send out bills etc? Where does Royal Mail purchase their fuel for their lorries from? Esso? BP? Shell? So ebico customers will be contributing to their profits too! :rolleyes:

Oh, and how about where Royal Mail buy their trucks from? Scania perhaps? That means they'll be profiting too from ebico customers. Oh no that's Sweden, damn, now the money has left these shores.
Hang on, VW have an interest in Scania, now that's another company an ebico customer will be helping improve their profits - that's Germany.
And VW own Seat too, so perhaps the money ends up in Spain anyway?

Do you see how much of a nonsense this is?

1carminestocky · 5 November 2008 at 6:27PM

Premier, my point is that, for all the worthy ethics of Ebico (and I DO like their ethics), using them is in no way bucking the trend of the Big 6 *alleged* cartel! Their HUGE achilles heel is that they aren't big enough to get their supplies on the 'open wholesale' market, they don't do their own billing or CS and their prices preclude many millions of customers from being attracted to them. All they are doing, effectively, is paying slightly less than retail for SSE to provide the service...and subsidising low users by overcharging (sorry, but how else can it be classed?) their medium to high users.

The problem with this approach is it makes their prices uncompetitive for many many users so they will always be a miniscule player and not a thorn in the side of the Big 6. Does anyone truly believe that the Big 6 would be in any way influenced by Ebico to do something about their confusion marketing? Of course not...because Ebico don't in any way impact on their profits. Only Ofgem can sort them out (don't hold your breath).

Is EBICO best over 2/3 year period?

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