Fuel poverty tariff sparks energy supplier spat

SSE claims Ebico breached the terms of a 20-year partnership by launching a prepay tariff with Robin Hood Energy.

Big six energy company SSE has told not-for-profit supplier Ebico that its recent decision to launch a pre-pay tariff in collaboration with Robin Hood Energy represents a breach of their longstanding supply contract.

SSE and Ebico are now to end their 20-year partnership, via which Ebico currently supplies 60,000 SSE customers.

Ebico denies that its collaboration with Robin Hood Energy – described as a “match made in heaven” by Labour’s shadow energy minister Alan Whitehead – contravened its supply agreement with SSE.

In a letter to SSE’s domestic business director Stephen Forbes, Ebico’s managing director Phil Levermore said he was “very sad that SSE has taken the decision to issue notice of termination of our partnership. 

“As you know, the partnership between Ebico and SSE has lasted for nearly 20 years and in that time, I believe, it has served the interests of those in fuel poverty both directly, through the tariff offered, and indirectly through the funds that Ebico has been able to provide to community fuel-poverty initiatives through the Ebico Trust. 

Levermore continued to say that the launch of the Ebico PrePay tariff with local energy company Robin Hood Energy was specifically designed to help fuel poor customers “many of whom are likely to experience energy costs as their top household expense after housing costs”.

Levermore said he was disappointed by SSE’s “heavy-handed” response to Ebico’s altruistic intentions and added that he is concerned that, from today (24 February), SSE will withdraw its support for the zero-standing charge tariffs it has delivered together with Ebico.

Levermore warned that this will come as a “shock” to existing customers and would undermine a “very popular” tariff structure which has recently enjoyed strong sales.

Ebico has now batted back SSE’s breach of contract accusations, saying that its withdrawal of services from customers is the true contravention of terms.

In response to the rising quarrel, SSE issued a statement to confirm that “the partnership between SSE and Ebico will now come to an end”.

“Over the last 15 years, SSE has supplied its customers under the Ebico brand with their energy and high levels of customer service,” said the statement. “It has produced tariffs specifically tailored towards vulnerable customers and has contributed £1m towards tackling fuel poverty.”

The big six supplier reassured that “SSE customers supplied under the Ebico brand will continue to be SSE customers for as long as they wish. They will continue receive their energy and the same high levels of customer service from SSE for the foreseeable future regardless of today’s announcement. Any suggestion otherwise is incorrect, misleading and should be ignored.”