Ebico to close in January? - SLC 31D

joncombe

Does anyone know what this? As far as I can tell it's some sort of licence condition. I found this on the Ofgem website : https://www.ofgem.gov.uk/ofgem-publications/87758/ebico-responsetocallforevidence.pdf

It ends with the conclusion below which suggests Ebico is currently relying on some of temporary exemption from this condition.

On the 1st January 2015, in the absence of an extension to the current temporary derogation from SLC 31D or the introduction of a new regulatory regime covering ‘white labels’, the EquiGas/EquiPower tariff will cease for both existing and potential customers. We believe that we have demonstrated that, in ending what is a unique offering in the home energy retail market, the result will be financially damaging to individual customers, will cause further cynicism and disengagement amongst a consumer segment and will bring about the closure of Ebico Limited, one of the market’s two social enterprises and which funds the work of a charitable trust supporting anti fuel poverty initiatives throughout Britain.

It would be a real shame if they close, but it seems Ofgem is determined to get rid of "no standing charge" tariffs.

Richie-from-the-Boro

joncombe wrote: »

Does anyone know what this? As far as I can tell it's some sort of licence condition. I found this on the Ofgem website : https://www.ofgem.gov.uk/ofgem-publications/87758/ebico-responsetocallforevidence.pdf

It ends with the conclusion below which suggests Ebico is currently relying on some of temporary exemption from this condition.

It would be a real shame if they close, but it seems Ofgem is determined to get rid of "no standing charge" tariffs.

They .. .. 'Ofgem' are, and they should get rid of the NSC's. Ebico, although I have no wish to join them however stand as one of two truly fuel poverty orientated organisations and I for one will be very sad to see them go.

Cardew

Richie-from-the-Boro wrote: »

They .. .. 'Ofgem' are, and they should get rid of the NSC's. Ebico, although I have no wish to join them however stand as one of two truly fuel poverty orientated organisations and I for one will be very sad to see them go.

Likewise I will be sad to see the demise of Ebico.


I have never understood how the Ebico model worked. They became the supplier of choice for those owning holiday homes etc.


I have an annex with a separate gas and electricity supply and minimal consumption, so use Ebico.


When other companies charged high rates for Pre-pay meters, Ebico with their flat rate for all methods of payment were a help to some low users.


However it has always been the case that Ebico were expensive for anyone except those with very low consumption - and very low consumption is not the same as those in fuel poverty.


I have a sneaking suspicion that some of those in fuel poverty and using Ebico are subsidising holiday home owners etc.

Bluebirdman_of_Alcathays

Interesting.

I have to say I'm with OFGEM on this one (which scares me a little). Ebico have 9 employees. Most people without detailed knowledge would consider them a "supplier". This is patently false. If it requires £750,000 capital for them to set up properly, then so be it; it's hardly a large sum in the grand scheme of things.

The alternative is SSE admit that it's a way of getting around the 4 tariff restrictions, and call it as one of their own. There really is nothing to stop the big 6 from going back to their old ways and offering 40 odd tariffs. BG are currently offering 7 instead of 4 using the white label diversion.

OFGEM will probably fudge it again, I can see them offering another 12 months extension (and another and another).

2010

Ofgem are totally useless.
They insisted there must be a standing charge BUT also stated the suppliers could set it at zero.
Low users and people who don`t use gas in the summer are now stuck with a SC thanks to Ofgems interference.
After years of fiddling by the big 6, Ofgem "discovered" it didn`t have enough power or it wasn`t their remit to investigate the big 6 and so referred them to the CMA.
For all the use Ofgem are they might as well be disbanded.

Bluebirdman_of_Alcathays

2010 wrote: »

Ofgem are totally useless.
They insisted there must be a standing charge BUT also stated the suppliers could set it at zero.
Low users and people who don`t use gas in the summer are now stuck with a SC thanks to Ofgems interference.
After years of fiddling by the big 6, Ofgem "discovered" it didn`t have enough power or it wasn`t their remit to investigate the big 6 and so referred them to the CMA.
For all the use Ofgem are they might as well be disbanded.

OFGEM banned 2 tiered tariffs. People aren't stuck with a SC - they can choose ebico.

If ebico want to continue to offer this, they need to get a license to supply energy just like everybody else. I see nothing wrong with this.

2010

Bluebirdman_of_Alcathays wrote: »

OFGEM banned 2 tiered tariffs. People aren't stuck with a SC - they can choose ebico.

If ebico want to continue to offer this, they need to get a license to supply energy just like everybody else. I see nothing wrong with this.

Of course people are stuck with a SC, Ebico is Hobson`s choice.
Why didn`t any of the big 6 set the SC at zero or better still why didn`t Ofgem set a fixed SC for ALL suppliers.
At the moment they all charge different SC so how does that make it easier to compare?
Ofgem are contradicting themselves.

Bluebirdman_of_Alcathays

2010 wrote: »

Of course people are stuck with a SC, Ebico is Hobson`s choice.
Why didn`t any of the big 6 set the SC at zero or better still why didn`t Ofgem set a fixed SC for ALL suppliers.
At the moment they all charge different SC so how does that make it easier to compare?
Ofgem are contradicting themselves.

I completely agree a fixed SC would have been the ideal solution. There is a very real fixed cost for suppliers, that would be the fairest way to recoup it.

However, we are where we currently are on the SC issue (which OFGEM cocked up). The ruling in question relates to the white label diversion, and on this I agree with OFGEM.

lstar337

2010 wrote: »

Why didn`t any of the big 6 set the SC at zero

Last time I checked NPower had a NSC tariff.

2010

lstar337 wrote: »

Last time I checked NPower had a NSC tariff.

Not for gas!

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and who`d want to move to probably the worse of the big 6.

lstar337

2010 wrote: »

and who`d want to move to probably the worse of the big 6.

Not the point.

You said none of the big 6.