Standing Charge vs No Standing Charge

mrputney08

Cardew wrote: »

This is their website today:

https://www.ebico.org.uk/

Both on the website, and this month's newsletter they emphasise that they have no standing charge; and they have to give notice of any change in their tariff.

So how did you 'find out' they were to introduce a standing charge?

If your information is incorrect(as I suspect it is) it can damage a firm.

The information I was shown is:
(see 'ebico, do not go there')
http://www.moneysupermarket.com/c/utilities/suppliers/ebico/reviews/18/1/1/1/0/
..don't shoot the messenger!

Cardew

Must be genuine if a bloke on the internet says so!

mrputney08

To clarify, I have just spoken with a member of the sales team at EBICO who said that when the standing charge is implemented it will be 'set to nought pence'.
I asked if I could get this in writing before I became a customer and she said that she can give to me in writing only that in due course all customers will be sent letters to this effect.
I asked how Ebico could ensure that the standing charge is set to nought pence where other companies have failed and she said that there are ways around it of which Ebico are trying..

IF this is so I wonder will Ebico will be bringing this 'nought pence standing charge' in with immediate effect or will there be period whereby existing customers will be forced to pay a standing charge until the nought policy is in action?, also how long will they be able to offer this 'nought standing charge' deal for? All of which cannot be answered.
For the record today their energy costs are approx. ELECTRIC: 16.49p P/kWH/unit INCL VAT. GAS: 5.06p per Kwh. THIS WILL VARY WITH POSTCODE.

Cardew

The existing policy is, and always has been, no standing charge.

Ebico has always had the same charge for gas & electricity regardless of method of payment - Direct debit, quarterly or pre-pay meter.

Their charges have only been competitive for low users - particularly electricity.

It is not just the kWh price that needs to be considered. Other companies offer all sorts of discounts - Dual fuel, internet, payment method etc - and these can reduce the bill considerably. Ebico don't give discounts.

The aim of Ebico as a non-profit company is to help the less well off(who are often on pre-pay). Ironically their tariff suits owners of a holiday home - who usually are well off.

mrputney08

Cardew wrote: »

The existing policy is, and always has been, no standing charge.


.. we are trying to find out if they will CONTINUE this no standing charge AFTER July, (for future customers) when they will be bringing one in (as the helpful sales assistant told me). Time only will tell for sure.

Units, and discounts (dual fuel, pay by direct debit) will all need to be taken into account when comparing, it goes without saying, but you'll need to start with the UNIT cost per Kwh of each (and take away the daily standing charge) to compare which is what I have given, inclusive of vat.

From the little contact I have had of Ebico I found them to be friendly, efficient, and polite.

Cardew

Over the last few months several people have reported on MSE that they have contacted Ebico on the question of Standing charge and all have been assured that there will be no standing charge.

The bigger question, raised in another thread, is that Ebico do not have a licence themselves; they are covered by SSE.

Could the latest proposals by ofgem to limit a company to 4 tariffs raise a question over the future of Ebico? That is a question - not a statement!

I have Ebico for an annex and likewise have had zero problems.

Nada666

mrputney08 wrote: »

I asked how Ebico could ensure that the standing charge is set to nought pence where other companies have failed and she said that there are ways around it of which Ebico are trying..

IF this is so I wonder will Ebico will be bringing this 'nought pence standing charge' in with immediate effect or will there be period whereby existing customers will be forced to pay a standing charge until the nought policy is in action?, also how long will they be able to offer this 'nought standing charge' deal for? All of which cannot be answered.
For the record today their energy costs are approx. ELECTRIC: 16.49p P/kWH/unit INCL VAT. GAS: 5.06p per Kwh. THIS WILL VARY WITH POSTCODE.

What are you talking about? You have clarified nothing. NO OTHER COMPANY HAS FAILED. Please identify these companies you think have been stopped from setting a standing charge of zero pence per day. Yes, suppliers are queuing up to implement a price bump and inconvenience customers they care least about (those with small spends.)

Richie-from-the-Boro

Cardew wrote: »

The existing policy is, and always has been, no standing charge.

Often claimed to be different by different people for different reasons, a standing charge must exist but can as Cardew & others have already stated can be set at zero.

2.10. We propose to have tariffs with a simple two-part structure, i.e. a standing charge (which can be zero) and a unit rate. Suppliers will no longer be allowed to offer complex tariffs which vary the standing charge or unit rate for different levels of consumption. Suppliers will need to reflect in the standing charge or the unit rate any charges that are related to energy supply. We are also proposing to specify the list of surcharges that do not have to be incorporated in a unit rate or standing charge. We propose that these surcharges will also have to have a simple structure.

NOTE - My comment :

The origins of what was then the Ofgem newly introduced standing charge, were presupposed to cover the costs that are outside of the suppliers control eg where there is no possibility of contractual negotiations or efficiency savings, the now interpretation, that of "maintenance, reading the meter, keeping supplies connected to the network and making sure the meter is safe" are all areas of influence well within all suppliers sphere of control. It when introduced was only ever supposed to cover "transport and supply, maintenance, reading the meter, keeping supplies connected to the network and making sure the meter is safe" and in the case of gas, a standing charge will also cover any emergency gas supplies. It was never intended to be variable by consumption or part of the Paul Daniels bundle magic mirror show.

NOTE02 : My RED

mrputney08

Nada666 wrote: »

What are you talking about? You have clarified nothing. NO OTHER COMPANY HAS FAILED. Please identify these companies you think have been stopped from setting a standing charge of zero pence per day. Yes, suppliers are queuing up to implement a price bump and inconvenience customers they care least about (those with small spends.)

I did not say other companies have been 'stopped'. I said that other companies have 'failed', in the context of continuing to give us no standing charge. There are far fewer energy suppliers now with a 'no standing charge' tariff than there used to be, and that some as you say are 'queuing up to implement a price bump' and hit those less well off even harder. That is exactly why I have tried to find out what I can about the situation with Ebico and whether or not they can or indeed 'will' stick with their 'no standing charge' for the for foreseeable future.
The whole purpose of these MSE forums is to help each other in getting the best deal.
I'm sorry I don't have a crystal ball, I have simply tried to pass on what I have found from Ebico, one of the last energy companies to offer a no standing charge, at this point in time.

denisiw

Cardew wrote: »

The aim of Ebico as a non-profit company is to help the less well off(who are often on pre-pay). Ironically their tariff suits owners of a holiday home - who usually are well off.

...and beach hut owners! I live on the IW and own a beach hut. I was with SSE for electricity but they've now done away with their 'No Standing Charge' tariff. I've just switched to EbiCo so I only pay for what I use.

Denis