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Ebico not for profit company ?
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Ebico will make their profit when they sell the company.
In the meantime they need to build up a customer base by appealing to the 'no profit' brigade. Just another marketing exercise, plenty of folk out there don't believe in free enterprise.0 -
Which region?Premier, British gas quarterly cash/cheque payment still works out cheaper on anything above 1200 units per annum which I would have thought 99% would use...
Using Energyhelpline.com, it suggests the following for a few regions I chose at random based on 1200 units per annum (which does seem somewhat low, granted!) on a single rate tariff:
Eastern: Ebico: £167 BG: £207 (Websaver1 £178, but requires online billing)
Midlands: Ebico: £169 BG: £205 (Websaver1 £177, but requires online billing)
Yorkshire: Ebico: £169 BG: £212 (Websaver1 £189, but requires online billing)
Note also cancellation fees apply to Websaver1.
The first BG price I quoted is based on their standard tariff with traditional paper billing, payment qtrly (not by DD) and has no cancellation fees."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Do a few comparisons to get your best options.
"Ebico" are cheap if you are a low user as the tiers others use are higher for low users and often if on Prepayment there are standing charges.
I am with Ebico and barring a few teething problems they suit me well. I regularly review prices and no other companies are cheaper for me!0 -
Ebico will make their profit when they sell the company...
As a non-profit making company, should the company ever be wound up all assets must be transferred to another organisation with similar non-profit making objectives or to charity.
"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
I want Ebico to succeed but can't believe anyone would set up a charitable energy company. How do the founders get a return of their seeding money, the upfront costs etc.
And why would Southern Electric do a deal to cover this, would be like shooting yourself in the foot.0 -
...How do the founders get a return of their seeding money, the upfront costs etc...
They don't get any return. It's a non-profit making organisation
A non-profit making organisation is set up to further a cause rather than create a return.
They may, as the accounts indicate in this case, generate a surplus (the opposite of which would be referred to as a deficit rather than a loss that a profit making company would call it), but how such surplus is used is strictly regulated, unlike a profit making company where the owners/shareholders may pocket any profit."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
I'm really surprised you haven't bought the accounts, Premier. I'm afraid they were wasted on me (I was the laughing stock at college in the accountancy module many moons ago). It's only a quid. Like I said before I can't find them on my PC now but IIRC they were showing a surplus of £500,000.Call me Carmine....
HAVE YOU SEEN QUENTIN'S CASHBACK CARD??0 -
1carminestocky wrote: »... IIRC they were showing a surplus of £500,000.
Oh that's good. Did it say what they planning to do with it? A worthy cause or more is going to be happy. :j
If you order up their memorandum and articles of association (part of their incorporation documents) it'll spell out exactly the the company's objectives are and therefore what the surplus may legitimately be used for.
Btw, £500k between 40,000+ existing customers relates to less than £12.50 per customer. Not a lot in the scheme of things when the surplus could have accrued over the whole period of 10 years the company has been trading."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
We are not on opposing sides of the argument here, Premier. I made it known how little the director's 'emollients' were when I first got the accounts. There are no fat cats in this company. My only 2 concerns have always been the price of their leccy (ridiculous, to be frank) and how their business model can be sustained going forward as the recession bites even more and even those people with 'high moral values' look to reduce their monthly outgoings. Only time will tell, of course. All I have stated all along is the business model *appears* to be based on the medium to high users 'subsidising' the very low users/pre-payment meter users etc. and, if that IS the case, how long that can continue?Call me Carmine....
HAVE YOU SEEN QUENTIN'S CASHBACK CARD??0 -
That is exactly the case, carmine.
http://www.ebico.co.uk/html/g_pricework.phpOne rate for everyone
So how exactly does our tariff work, and how is it different from other companies?
Firstly, most energy supply companies charge pre-payment meter customers at a higher rate than other customers, because there’s more effort involved in servicing their payment method – supplying and looking after the meters.
As well as that, most other companies also offer deals that mean people are charged less if they use a lot of energy, or when they commit to paying in a particular way.
This means people pay usually a lower rate because they spend more. So, in effect, the market usually rewards those who have more money to spend in the first place.
EquiGas, however, takes an equitable approach. We even out between all our customers the different expenses of different payment methods. As a result, nobody is penalised because of his or her budget or circumstances, or by how much gas they choose to buy. Everybody pays at the same fair rate and there are no standing charges.
When you consider that pre-payment meter users have to pay up to a third more than online customers with suppliers in some regions, you realise what’s special about EquiGas.
Benefits for everyone
Not only is our tariff system unique, but as a not-for-profit company, with no shareholders to reward, we are uniquely placed to keep our rates as low and competitive as possible for all consumers. Our not-for-profit ethos means any surplus is used to increase benefits for our customers.
However, even those who make less significant savings choose to stay with EquiGas, because they prefer to pay rates that are fair to all consumers
The same applies to electricity.
http://www.ebico.co.uk/html/e_pricework.phpEquiPower’s fair rate
So how does our own tariff work, apart from the regional variation? What makes Ebico different?
EquiPower, as the name suggests, is an equitable rate available to all domestic customers in England, Scotland and Wales. We even out between all our customers the different expenses of different payment methods. Nobody is penalised because of his or her budget or circumstances or by how much gas they choose to buy.
Everybody pays at the same fair rate and there are no standing charges.
In contrast, most other energy supply companies charge pre-payment meter customers at a higher rate than other customers. Their reason is that there’s more effort involved in servicing this payment method – i.e. supplying and looking after the meters, which are the company’s property.
As well as that, other companies also usually offer deals that mean people are charged less if they use a lot of energy, or when they commit to paying in a particular way. This means people pay a lower rate because they spend more.
In effect, the market at large rewards those who have more money to spend in the first place. Ebico aims to reverse that market trend. It may be the only energy company that actually encourages people to spend less!
When you consider that pre-payment meter users have to pay up to a third more than online customers in some regions, you realise what’s special about EquiPower.
As for the price of the electricity they supply, well you may consider it to be ludicrous, but as you have seen, the company's accrued surplus over 10 years is equal to about 1% it's annual turnover last year (based on a typical average customer currently paying £1200 pa for their energy supplies).
Your findings have uncovered there are no fat cats...and their income is less, perhaps significantly so, than 1% more than their expenditure.
If they had misjudged it and got their figures the other side of the wire, the company would probably have gone bust by now owing £0.5m"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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