EBICO customers be aware.

Insider87

I've just read through 13 pages of posts about Ebico.Ltd, and i must say it is great to read such open debate about the company.

I do feel somewhat disappointed that people seem to miss the point of what is trying to be done at Ebico. An inequality in the market has lead to prepayment meter customers paying a premium over credit meter customers. If we however, penalise those customers constantly there is a major problem in the sector. Where customers who are able, pay by a convinient method are being rewarded for doing what is most convinient for the companies (namely, direct debits). Prepayment meter customers create a number of costs to the company, due to the physical nature in which the meters opperate. These customers are charged a premium for this service. Initially prepayment customers are those who have had a shaky credit history or are in debt to the company, and by fitting a prepayment meter, this is a way of recupourating the debt. These customers are then put on a higher price tariff, and forced to pay back the debt they owe on their meter. The system itself perpetuates these customers into debt. The costs of recouporating the debt are passed directly onto the customers. As well as paying the initial debt off the meter, these customers are paying for the company choosing to force them to pay the debt through a prepayment meter. This creates a self-perpetuating system of debt for people who are on low incomes. Charging these customers a premium is socially irresponsible.

Im surely not suggesting people who are on prepayment meters should get an easy ride. But the overcharging of customers already struggling to pay is ridiculous, and can not be accepted.

The change in attitude towards prepayment customers has come directly from companies like Ebico putting pressure on the larger companies, and canvassing directly through government to change OFGEM regulations towards prepayment customers, and those on lower incomes. Arguments may rage about the amount people use and the tiered rates they are on. However, the reason other large companies (eg. EDF) have started to charge the same to prepayment meter customers as to direct debit customers is directly due to the competition and policy pressure from companies like Ebico.

I think the best message to come from Ebico as a company is that of social responsibility within both personal and company ethics. The way prepayment customers are handled by other larger companies is socially irresponsible. The use of a tiered payment system that encourages people to use more to get a cheaper unit rate, is also irresponsible. For a product that is a necessity rather than a luxury, we should learn how to limit our usage, and in that way we can limit our costs. It bugs me that people will complain at the gas and electrcity company when they ask the customer to be responsible for their own usage. Yes Ebico is cheaper for lower users, because Ebico is a flat fair structure, and therefore it puts the onus on the customer. The customer knows exactly what there tariff rates are, and they can calculate this with the amount they use. If Ebico were constantly cheaper than the competition there would be no worry about how much you used, and everyone would be able to use loads of cheap gas and electric. However, in the current economic and environmental climate, we must preach social responsibility amoung companies and customers alike. In both ways, customers should not pander to a companys wishes for their custom. Also the companies should take a responsible line, by not introducing online-paperless-direct-debit-dual fuel-price-comparison bonus-discount tariffs that encourage higher usage at a cheaper cost, confusing the customer in how much they are paying and what they were paying for. This does not teach us to take responsibility for what we use and how much that actually costs. The reprocussions on economics and environment are obvious, so can we not agree - that cheapest doesnt always mean better but fairness and a company that stands up to it's social responsibility is much more worth backing. :beer:

SwanJon

Using the PP meter to recover a balance is never ideal - but sometimes it is the only way a someone can manage their ongoing consumption without building up a further debt. Other options are available, but all require the customer to make the first move. What we need is these methods to be more highly publicised, and for people to be more comfortable to discuss these options with their suppliers.

Insider87 wrote: »

However, the reason other large companies (eg. EDF) have started to charge the same to prepayment meter customers as to direct debit customers is directly due to the competition and policy pressure from companies like Ebico.

Are EDF actually charging the same for DD as PP? I know a few companies are now charging the same for quarterly as PP (I think SP is actaully cheaper on PP), but I was unaware anyone apart from Ebico was the same as DD.

Insider87 wrote: »

Also the companies should take a responsible line, by not introducing online-paperless-direct-debit-dual fuel-price-comparison bonus-discount tariffs that encourage higher usage at a cheaper cost

I'm not aware of any tariff where it is actually cheaper to use more than less (although happy to be proven wrong). The 2 tier structure means that there will be times when the next kWh is cheaper than the last kWh, but never that x+1 kWh costs less than x kWh.
So, if you use less, you pay less on both methods.
I'm glad that Ebico exists - it increases the choice to consumers in the same way the small green suppliers do, and FU & Utilita with Smart meters - maybe even kicking the bigger suppliers to try something different, but the very nature means that they will not be the cheapest supplier for many people.

Nigella_2

Ebico are good for me as I am a low user!

Other companies charge tiered rates / standing charges which hide the real price.

I still do comparisons every few months.

(as Ebico says - you are encouraged to use more with other energy companies as the units get cheaper over time where Ebico charges the same whatever)

Ebico won't suit everybody.

SwanJon

Nigella wrote: »

(as Ebico says - you are encouraged to use more with other energy companies as the units get cheaper over time where Ebico charges the same whatever)

As above, I've not seen or heard of a tariff like this - you are always charged more for using more, it is just that the price of follow on units is less.

Obvioulsy it is in the suppliers' interests for us to use more, but only becasue they get more money from us.

Use less, pay less - with any company.

1carminestocky

Nigella wrote: »

Ebico are good for me as I am a low user!

Other companies charge tiered rates / standing charges which hide the real price.

I still do comparisons every few months.

(as Ebico says - you are encouraged to use more with other energy companies as the units get cheaper over time where Ebico charges the same whatever)

Ebico won't suit everybody.

Anyone who has seen my posts in this forum will acknowledge that I am not exactly, err, a huge fan of the Big 6 , but are you sure Ebico said this? I would be very surprised, personally...

Premier_2

To be fair, I don't think Nigella ever implied that a higher consumption would result in a lower final bill

What was said was:

Nigella wrote: »

...(as Ebico says - you are encouraged to use more with other energy companies as the units get cheaper over time where Ebico charges the same whatever)...

This is similar to what ebico state:

"...most other companies also offer deals that mean people are charged less if they use a lot of energy, ...
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." http://www.ebico.co.uk/html/g_pricework.php

Nigella_2

Thanks Premier

"Encouraged" was the wrong word BUT you have the drift!!!!

1carminestocky

LOL, I'm just amused at the thought of some punters sitting in their lounges with the heating turned to the max trying desperately to get to Tier 2.

Agnes: 'Are we there yet, Bert? I'm melting here'

Bert: 'Just a few more kwhs to go, Agnes, and we can breathe easy, love'

Agnes: 'You know, Bert, I was reading on that nice Martin Lewis's site the other day that if we joined that company with the strange foreign-sounding name, something El Leako, we could have the thermostat turned right down all the time. It would be bliss.'

Bert: 'Eh? What have I said about you going on that t'internet, Agnes? It's full of loonies, that bl**dy thing!'

wizzy211080

Ebico have come out as cheapest on u switch but I am unsure whether to switch to them. I could save half of what I pay now. I am a low user and would pay when the bill comes in.

Can anyone confirm if this is a good move or not please?

(ps. BG are the WORST suppliers and I would NEVER go with them again - robbing gypsies)

KimYeovil

If you are a very low user then, yes, you can easily save 50 to 66% with Ebico. This will tighten up during winter and when your usage increases. But as a low user wanting the ability to pay quarterly with no penalty it is a straightforward decision.