Ebico clarification please

Bluebirdman_of_Alcathays

Cardew wrote: »

http://howtomakeadifference.net/2013/03/hugh-lee/?utm_source=dlvr.it&utm_medium=twitter

Thank you for the link, quite interesting reading.

I found it quite contradictory unfortunately.

As Ebico is a not-for-profit company, any surplus is reinvested back into the company

If you are not for profit, what is a surplus?
According to the UN, an NPO/NCO uses surplus revenues to "achieve goals, rather than distribute them as profit or dividends"
What are Ebico's goals, exactly?

The plan for the future, just like any successful company, is for sustainable growth

Growing what? Customer base? If so, that doesn't differentiate them from any profit making company.
Growing their own surplus? I refer you to my first point.

The cynic in me suggests it's just SSE's attempt to target the conscientious market, and it's worked darned well if recent statistics are to be believed.

flyingjock1

Ebico arent owned by SSE, They buy their gas and elec from SSE. They are a registered charity and have an arrnagement that SSE do their billing and a lot of their customer service for them. As they dont have to maintain supply infrastructure ie pipes and cables they dont have absorb the associated costs and are then able to buy the gas and elec at a price and pass the discounts onto customers while still making enough money to fund other energy efficiency schemes.

ihateyes

flyingjock1 wrote: »

Ebico arent owned by SSE, They buy their gas and elec from SSE. They are a registered charity and have an arrnagement that SSE do their billing and a lot of their customer service for them. As they dont have to maintain supply infrastructure ie pipes and cables they dont have absorb the associated costs and are then able to buy the gas and elec at a price and pass the discounts onto customers while still making enough money to fund other energy efficiency schemes.

Then surely their prices should be even cheaper.

im sceptical as another poster.
I think there is a commercial tie in with SSE.

Infact is see Ebico-SSE just like Plusnet-BT.

Only thing here is SSE have done a better job of covering it up.

I mean think about it..... SSE are selling it to Ebico cheaper than selling to domestic customers? How does this benefit SSE.

SSE staff are dealing with Ebico customers on the telephone?
How does this benefit SSE?

DragonQ

ihateyes wrote: »

Then surely their prices should be even cheaper.

im sceptical as another poster.
I think there is a commercial tie in with SSE.

Infact is see Ebico-SSE just like Plusnet-BT.

Only thing here is SSE have done a better job of covering it up.

I mean think about it..... SSE are selling it to Ebico cheaper than selling to domestic customers? How does this benefit SSE.

SSE staff are dealing with Ebico customers on the telephone?
How does this benefit SSE?

Ebico's prices are almost entirely dictated by SSE's wholesale price, which is going to go up every time SSE's retail price goes up. It'd be cheaper for Ebico to buy directly from the world market but I imagine they're not a large enough company to do this.

As for why SSE sell to Ebico, I can't see any downside to it. They probably charge Ebico near-retail prices anyway and potential get more second-hand customers (so to speak).

Anthorn

I think the best way to describe the Ebico tariff is the "SSE Ebico tariff" which is different to the equivalent SSE tariff. That's grossly oversimplified but nevertheless accurate I think.

Not for profit doesn't necessarily mean they don't make a profit: Ebico still has to make a profit to pay salaries for administration and the costs of running the company. But whether they need to set aside funds for future development is debatable since that is done by the energy provider, currently SSE.

macman

Ebico choose to give their profits (or a share) to charity. Fine, but that doesn't mean that they'll necessarily be any cheaper to use. 'Not for profit' does not automatically mean 'cheaper prices'.
I don't really care what profits the Big Six are making-what concerns me is their retail pricing.
On the same principle, I have various Nationwide accounts, not because they are still a mutual, but because those accounts are competitive.

footyguy

Perhaps I can help clarify a few points about Ebico?

1. I won't explain the difference between:
a. A company that makes a loss (they don't remain around for long)
b. A not for profit company
c) A for-profit company.

If anyone wants to know, that can easily be found out

2. Ebico are a not for profit company.
Ebico buy their energy from SSE, a for profit company, paying the charges SSE retail ask.

Now SSE, like most big suppliers, especially until recently, have a vast number of tariffs whether it be fixed or variable, for PPMs or credit meters. Most of the credit meter tariffs also come with a wide range of discounts for the usual things like paying monthly by DD, paperless billing, online account handling, etc, etc.

Well Ebico simply take the total cost of all the customers they supply at the prices SSE would otherwise charge and level them out so everyone pays the same flat unit charge. There is no discount for paying by DD, no discounts for anything. There is no daily standing charge (or 2 tier pricing) and those on PPMs pay the same as those with the luxury of a credit meter for their energy. There is no fixed tariffs either.

3. Ebico had over 50,000 customers last time I looked. Yes they are growing so they can support even more the good causes they support (essentially helping those in fuel poverty)

4. On their bills you will see in their cost breakdown things like profit, distributions costs etc. These all relate to their supplier of energy, SSE who are a for profit company and incur all the costs any supplier does.
All ebico do is level the SSE cost out amongst their own customer base.


How do I know all this? Because I asked Ebico previously and they had no issues in explaining it all to me.

For these reasons, Ebico will not be cheaper than the cheapest elsewhere (but might be if you are on a PPM).
Because of their unique pricing structure, then they may be cheaper for low users, and that (other than asking the same price from everyone) is their whole pricing philosophy - to encourage lower usage; something they say on their own website.They say the big suppliers by their pricing structure encourage high usage as the more you use the comparatively cheaper the cost.
With Ebico and their flat fee structure, you pay for what you use. Use less, and you pay correspondingly less.

ETA: And finally, Ebico are not a charity actually, but they have formed the Ebico Trust for Sustainable Development which is a registered charity. It is to this trust that they usually give any surplus generated, thereby maintaining their not-for-profit status.

The Ebico Trust for Sustainable Development, amongst other things, financially supports local projects that carry out material improvements in the condition of properties – particularly those occupied by low incomes householders – so as to make them cheaper to heat.

You can read much more on the Ebico website if you are interested

Bluebirdman_of_Alcathays

footyguy wrote: »

Perhaps I can help clarify a few points about Ebico?

1. I won't explain the difference between:
a. A company that makes a loss (they don't remain around for long)
b. A not for profit company
c) A for-profit company.

If anyone wants to know, that can easily be found out

2. Ebico are a not for profit company.
Ebico buy their energy from SSE, a for profit company, paying the charges SSE retail ask.

Now SSE, like most big suppliers, especially until recently, have a vast number of tariffs whether it be fixed or variable, for PPMs or credit meters. Most of the credit meter tariffs also come with a wide range of discounts for the usual things like paying monthly by DD, paperless billing, online account handling, etc, etc.

Well Ebico simply take the total cost of all the customers they supply at the prices SSE would otherwise charge and level them out so everyone pays the same flat unit charge. There is no discount for paying by DD, no discounts for anything. There is no daily standing charge (or 2 tier pricing) and those on PPMs pay the same as those with the luxury of a credit meter for their energy. There is no fixed tariffs either.

3. Ebico had over 50,000 customers last time I looked. Yes they are growing so they can support even more the good causes they support (essentially helping those in fuel poverty)

4. On their bills you will see in their cost breakdown things like profit, distributions costs etc. These all relate to their supplier of energy, SSE who are a for profit company and incur all the costs any supplier does.
All ebico do is level the SSE cost out amongst their own customer base.


How do I know all this? Because I asked Ebico previously and they had no issues in explaining it all to me.

For these reasons, Ebico will not be cheaper than the cheapest elsewhere (but might be if you are on a PPM).
Because of their unique pricing structure, then they may be cheaper for low users, and that (other than asking the same price from everyone) is their whole pricing philosophy - to encourage lower usage; something they say on their own website.They say the big suppliers by their pricing structure encourage high usage as the more you use the comparatively cheaper the cost.
With Ebico and their flat fee structure, you pay for what you use. Use less, and you pay correspondingly less.

ETA: And finally, Ebico are not a charity actually, but they have formed the Ebico Trust for Sustainable Development which is a registered charity. It is to this trust that they usually give any surplus generated, thereby maintaining their not-for-profit status.

The Ebico Trust for Sustainable Development, amongst other things, financially supports local projects that carry out material improvements in the condition of properties – particularly those occupied by low incomes householders – so as to make them cheaper to heat.

You can read much more on the Ebico website if you are interested

Hmm.

I supported what you wrote on the OVO issue. Now, I have no reason to believe you're anything other than an Ebico stooge. The reason? You won't address point 1 of your own argument!!

It doesn't matter whether Ebico lose money, make money or break even. They are so tied to SSE it makes their independence a moot point.

They do offer competitive tariffs to low users which I applaud. People should be discouraged from being profligate.

They are a white label brand, like Sainsburys are for BG. Sainsburys have (until recently at least) been offering superb tariffs below BG. It doesn't remove the umbilical cord of corporate dependency that exists. No BG, no JSains. No SSE, no Ebico.