EQUIGAS - A Difficult Concept to Grasp

What about a domestic gas supplier whose tariff competes with the many others who are after your business on the basis of fairness and equity, rather than directly on price?

One such has just been launched EQUIGAS. The tariff, for those who pre-pay through a coin or key meter for their gas, is always more expensive, despite the fact that the supplying company gets its money in advance. The people who offer EQUIGAS consider that the benefits of competition have been unfairly distributed in favour of quarterly payment customers and, even more, those who have signed direct debit contracts.

The Gas Consumers Council, in its report "Fuel Poverty in Britain" (November ‘98), says that pre-payment meter customers are increasingly concentrated in low income groups and single parent families.

A fair price for gas - for everybody.

The EQUIGAS tariff is 1.638 pence per kWh of gas used, including VAT, no matter what method of payment used. It provides one single competitive price for all customers and, because there is no standing charge, customers pay directly for the gas they use. Small users are subsidised by larger users, which is what is intended. The price, however, offers savings to all customers of British Gas except those who consume more than 28,000 kWh a year.

This unusual venture is backed by John Battle, the Energy Minister, who said before the launch "I am very pleased to hear that this significant and novel scheme is about to become reality".

Behind the scheme are a group of Energy experts who all come from the Oxford area and who set up EBICo Ltd., a non-profit making company, to enter into contracts with a gas supplier and to retail the gas. They do not draw any Directors’ salaries. They have obtained the support of the Bishop of Oxford, The Rt. Revd. Richard Harries, Simon Mayo, BBC 1 Radio Disc Jockey and Dr. Evan Harris MP who has already signed-up to obtain gas for his home from EQUIGAS. The scheme will be independently audited and the whole operation will be subject to ethical audits as well. The company promises that any profits made will be ploughed straight back into the tariff to ensure lower prices for all. The more customers they get, the better deal they will be able to offer.

Ring the helpline 0800 117 116 and quote EQUIGAS and find out more about this interesting initiative. You can also visit the website at www.ebico.co.uk. JFB/Ken Frere

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