News

17.6.08

EquiClimate Relaunched

In February this year, the Government issued a draft code of practice for carbon offsetting schemes. Whilst the Code has yet to be implemented, we’re pretty sure that the final version will be pretty similar to this draft. We, at Ebico, welcomed the Code and, in particular, Defra’s continued focus on the importance of the use of Kyoto compliant mechanisms for offsetting despite a fierce rearguard action by those offsetting companies that utilise ‘voluntary’ offsets - which we consider to be considerably less robust. Visitors to the EquiClimate site recently will have noticed that the EquiClimate carbon calculator was of-line for several weeks. This was because we were upgrading EquiClimate to ensure that it remains compliant with the latest UK Government thinking on carbon offsetting. We’re now reintroducing EquiClimate and we hope our offsetting customers like what we’ve done. Visit www.equiclimate.org.

We intend to apply for the Defra Quality Mark for EquiClimate as soon as the scheme is finalised.

28.3.08

Price of EquiGas and EquiPower to rise from the 1st of April 2008

Ebico today (Friday) announced the first change in the EquiGas and EquiPower domestic gas and electricity supply tariffs since September 2006. As from the 1st of April 2008, the price of EquiGas will rise by 12% and the price of EquiPower will rise by an average of 15%.

19.2.08

EBICo Call on Ofgem to Review Competition Mechanism

EBICo Chairman, Hugh Lee, has today called upon Ofgem, the electricity and gas markets regulator, to address a major problem with the competitive market. Hugh said,

"Over 100,000 prepayment meter customers have tried to switch to a cheaper energy supplier but have been denied permission due to a failure in a protocol designed by Ofgem with the major suppliers' help."

Managing Director Phil Levermore added,

"I'm afraid that yet again low income customers get the raw end of the deal. Nobody seems to care if competition fails to deliver lower prices for low income customers."

18.2.08

Ebico calls for review as competition rules fail 100,000 households

Rules set up by OFGEM more than 4 years ago to enable domestic electricity and gas customers to switch to cheaper suppliers have been an abject failure with over 100,000 households having tried to make use of OFGEM’s “Debt Assignment Protocol” rules without a single success.

EbiCo has, today (14th Feb), called on OFGEM to tackle the failure of all the major domestic electricity and gas suppliers to implement a significant plank of its “social obligations” strategy. OFGEM’s Debt Assignment Protocol was designed to enable customers with outstanding arrears to be able to access the competitive market and switch to cheaper suppliers and so make their energy costs and debt repayment more sustainable. In their headlines accompanying their Social Action Plan in 2004 OFGEM stated:

‘THE DRIVE TO REDUCE FUEL POVERTY CONTINUES
• Ofgem committed to playing its part in reducing fuel poverty
• Up to one million prepayment customers in debt can now switch supplier’

Yet in OFGEM’s latest report on the suppliers’ progress on social obligations the authors admit,

“Since the permanent introduction of the debt assignment protocol, no PPM customer with a debt has successfully transferred supplier using the protocol. From our monitoring of the procedures we can see that customers have tried to switch but not completed the whole process. For example, in 2006 over 100,000 supply point objections were issued due to an outstanding debt on a PPM.”

In an open letter to Alistair Buchanan, OFGEM’s Chief Executive, Hugh Lee, EBICo Chairman writes,

“We, at EBICo, believe that, in this regard, OFGEM has failed in its primary responsibility to ensure adequate competition in the energy market. With retail energy prices rising and four million households now experiencing fuel poverty, we consider it scandalous that low income customers with outstanding arrears are effectively still being prevented from shopping around to get the best energy and repayment deal available. This failure of competition is costing vulnerable households dear and will mean that more homes will have thrust upon them the impossible dilemma of food or warmth……… On behalf of EbiCo, I request that you look urgently at the failure of the Debt Assignment Protocol – a failure which is affecting the lives of many low income households.”

Endorsing Hugh Lee’s call, Phil Levermore, EBICo’s Managing Director said,

“The major suppliers don’t want to take on customers with a history of arrears so, naturally, they’ll seek all sorts of legitimate ways of not doing so. It’s down to the Regulator, OFGEM, to force suppliers to make the debt assignment process work and get lower priced energy and more sustainable arrears settlement to those low income households who really need them.”

EBICo would like to hear from anyone with a prepayment meter with electricity or gas arrears of less than £100 who has had their supply switch request turned-down. Write to: EBICo Limited, PO Box 354, Witney, OX29 7WN.

5.2.08

Ebico calls for energy price reversal

MARKING THE LAUNCH of its new website, Ebico has called on fellow UK energy suppliers to reverse recent price increases for their pre-payment customers – at least until winter is behind us.

Consumer research shows a strong correlation between low household income and the use of a pre-payment meter to pay for electricity and gas. Yet meter customers regularly pay at a much higher rate than customers who pay by other means.

Chairman Hugh Lee, speaking at the launch, said:

“National Energy Action have identified that pre-payment customers can pay up to £304 more each year for their home energy. Raising prices for this already disadvantaged group while the weather is at its coldest is not only unjust but cruel.”

According to the National Consumer Council, four million households are now estimated to be experiencing fuel poverty – defined as where more than ten per cent of household income is spent on domestic heating and lighting.

Ebico understands that stable prices are important for household budgeting and has ensured the price for EQUIGAS and EQUIPOWER have only changed three times in the last five years.

“Winter presents low income households with tough choices,” said Phil Levermore, Ebico’s MD. “When the thermometer drops and energy prices rise, there can be a stark choice of whether to heat or to eat in vulnerable households. Electricity and gas price rises mean that this dilemma will be faced in still more homes.

“We believe that the costs of delaying or reversing the price increases for these vulnerable households, at least until the end of the winter, would have only a minor effect on suppliers’ profitability.”