Ebico price hike! (Fixed rate?)

LeeGlasgow

Hello everyone, 
I received an email late last night stating that my monthly direct debit was being increased, We have only just renewed with Ebico in February and this was on there Ebico prime 24 fixed v4 contract. Firstly can they legally increase this when we are on a fixed rate tariff and secondly the increase is most likely to us being made to work from home during the covid19 pandemic but surely they should factor this in and not increase in these difficult times?
Any advice would be welcome as I cannot speak to their customer services as they are closed!!

MWT

The 'fixed' part is the cost per kWh, the amount you pay will be dependent on how much power you use, so yes, the monthly DD can increase as it has to cover the total cost of what you use over the course of a year.

Now, that doesn't mean that the amount they are asking for is correct or reasonable so do a few calculations.

Check your annual usage, preferably the actual usage based on your bills but failing that the projected annual use which should be on your last bill. Multiply that by the cost per kWh which you've agreed to on the renewed tariff. Add in the standing charge x 365 and also add in any outstanding unpaid balance on your account. Divide the total by 12, is that number close to what they are asking for with the new DD?

Kitchen_Sink

LeeGlasgow said:

Hello everyone, 
I received an email late last night stating that my monthly direct debit was being increased, We have only just renewed with Ebico in February and this was on there Ebico prime 24 fixed v4 contract. Firstly can they legally increase this when we are on a fixed rate tariff and secondly the increase is most likely to us being made to work from home during the covid19 pandemic but surely they should factor this in and not increase in these difficult times?
Any advice would be welcome as I cannot speak to their customer services as they are closed!!

Welcome to MSE

I can confirm there has been no price hike to the Ebico prime 24 fixed v4 tariff since it was launched in mid January this year, and nor do I expect there will ever be (although the particular tariff may be withdrawn to new applicants at any time)

Remember, as you rightly state, this is a fixed rate tariff, not a fixed cost tariff. i.e. the amount you are charged depends on how much you use.

Also remember that what you pay monthly by direct debit are simply amounts that are credited to your account to fund the debits applied based on what you use.

Yes, suppliers are obligated to review regularly their customers monthly payments to ensure that it will roughly meet the overall cost, and not to create a large debit or credit build up.

I'm sorry, I do not agree with your premise that the increase is most likely to us being made to work from home during the covid19 pandemic. Ebico (RHE) only bill every 3 months, and so this would be the most frequent they review customers monthly payments - perhaps not even that frequent. How long have you been working from home because of the pandemic? 5 weeks? Even then, how much more energy do you really think you have used because of working from home? Recent reviews by suppliers who have customers with smart meters suggests possibly up to 6% increase, although some say it is flat, perhaps offset to an extent by the fine weather we experienced during most of April.

This MSE article may assist you further in the setting of a reasonable monthly payment.
https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits/

Finally, you express concern as to how to conatct the supplier when it has closed it's call centre, either to complain about the revided level of monthly payment or to discuss your financial ability to pay your bills during this pandemic. I see the supplier has emailed you, so perhaps there lies the answer? Otherwise, please refer to the supplier's website for details of how to contact the supplier whilst they have temporarily closed their call centre.