Ebico Misrepresentation & Low usage penalties

13

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  • Gerry1
    Gerry1 Posts: 9,936 Forumite
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    If you name a tariif Ebico Zero Green Fixed v4 and state in capitals that it has ZERO Standing Charge, that's about as misleading as you can get. Customers would rightly assume that no usage means no spend. The punchline should be trustable, not countermanded by the small print.

    So much for the Ethical Billing Company. They should rebrand to to Unebico. :D
  • Gerry1
    Gerry1 Posts: 9,936 Forumite
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    They are about as misleading as it's possible to be:-

    They show a red disc stating Minimum Annual Bill Value, not Minimum Annual Charge. Minimum Annual Bill Value suggests that basic good value is guaranteed and you might get better value than the minimum.

    The wording next to the red disc cannot be read because it is obscured by the 'Get Quote' icon.

    They state 'Minimum annual bill values apply, check Terms & Conditions'. If you scroll down to the Terms & Conditions link at the bottom of the page and click it, there is no mention of any minimum charges. If you click on the link above the red disc, the next page says 'To open up a PDF of our terms and conditions, please click here.' Again, there is no mention of any minimum charges.

    Only if you read the smaller print at the bottom of that page is there a link to a PDF of additional terms and conditions for Ebico Zero Green Fixed v4. Something about being on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard' comes to mind...
  • Cornucopia
    Cornucopia Posts: 16,154 Forumite
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    I've now seen two of the smaller companies come up with novel tariff twists, and I think it's probably time for the regulator to bring in special rules for non-standard tariff formats to avoid consumers being misled.

    (The other one was Outfox the Market's change to seasonal variations in "fixed" direct debit amounts).

    I think they ought to at least have to make it very clear where there are additional charges or potential charges outside of the normal format of the three usual tariff formats (that probably apply to 99% of UK contracts).
  • Gerry1
    Gerry1 Posts: 9,936 Forumite
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    Companies claiming No Standing Charge got around it by adding a surcharge to the first umpteen units in a quarter to claw back the equivalent sum. Ofgem eventually cottoned on to this and banned the practice as misleading.

    When they next awake from their slumbers perhaps Ofgem will outlaw Ebico's dodge as well.
  • Talldave
    Talldave Posts: 2,002 Forumite
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    Ironically, the "first n units at a higher rate" was clearer than a no standing charge tariff that charges you even if you use nothing.


    So we have to accept that a charge for using nothing isn't a standing charge, it's just a charge for using nothing?
  • estebandos
    estebandos Posts: 1 Newbie
    I'm happy to have found this forum and the useful information it contains. Despite what some contributors suggest, I think it is clear that Ebico are now deliberately mis-representing their tariffs. I don't understand why the ASA think they need more complaints to investigate something but, since it seems that they feel that they do, I shall follow GuillermoK's lead and sending a complaint to them. Ebico can, of course, offer what tariffs they wish, but the shouldn't say they are "Zero Tariff" when they aren't.
  • silverwhistle
    silverwhistle Posts: 3,791 Forumite
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    Just a little update which shows why some of us wanted a genuine zero standing charge tariff.



    I received my final bill from Ebico last week which I've just paid. For the gas I went on to their default tariff for 22 days. My bill for that (before VAT) was £7.36, of which £6.51 was standing charge and 0.85p was actual consumption...
  • squiggles
    squiggles Posts: 1,635 Forumite
    First Post Combo Breaker First Anniversary
    silverwhistle wrote: »
    Just a little update which shows why some of us wanted a genuine zero standing charge tariff.



    I received my final bill from Ebico last week which I've just paid. For the gas I went on to their default tariff for 22 days. My bill for that (before VAT) was £7.36, of which £6.51 was standing charge and 0.85p was actual consumption...

    May I ask which company you switched to please?
  • Cardew
    Cardew Posts: 29,036 Forumite
    Name Dropper First Anniversary First Post Rampant Recycler
    The cheapest alternative for my annex - in Midlands - is now E-on who only charge a 5p a day standing charge for gas and 5p dsc for electricity
  • squiggles
    squiggles Posts: 1,635 Forumite
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    Thank you. I’m looking around for options and I’m stuck with zero green v4 until I’ve used the acceptable min £104 gas and £52 electric. The gas will take a while until I reach it but the electric a lot quicker.

    I will certainly use your link if I find it a good option for me.
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