We’ve announced a change to our Members’ rate - that’s the per unit rate you pay for your energy - and I wanted to give you more information here in the Community.
We know that nobody likes a price rise. Wholesale prices have risen by 25 per cent throughout 2018. They have been higher than the market expected, for longer than expected.
Because we buy your energy in advance, we’ve been able avoid an increase for existing Members until after Christmas. We’re letting you know six weeks in advance to give you time to plan.
When do the new rates take effect? The change is effective from 15 January 2019 for all existing Members. New Members joining us from today - 27 November - will be quoted and join at the new rates.
What are the new rates?
For a typical household using both electricity and gas, the average cost will rise by 8.4 per cent for the dual fuel medium users. The increase for single gas users is 7.7 per cent, and for single electricity user is 8.5 per cent. This means the average bill for medium use dual fuel users will increase from £921 to £998 a year. All our Members will get an email over the next few days with the detail about how their annual energy cost is affected. We are not changing any Direct Debits.
Why are we putting our prices up? Due to wholesale market prices rising in the last few months, we need to increase your Member’s rate. As you know, our Members’ rate is based on wholesale energy costs. There’s zero markup on the energy you use. You pay no more than we pay. Wholesale prices have risen by 25 per cent throughout 2018.
With the new tariff how does Pure Planet compare to other suppliers?
Why do different regions of the UK have different rates? The difference in the cost across each geographical region is down to the cost of transporting gas and electricity to your home. The costs are determined and applied by your Distribution Network Operator (DNO) and we pass these on at cost. We don’t make money on the transport costs of getting energy to your home.
When did we last put up our prices? Against a whole energy cost increase of 25 per cent in 2018, we have put up our prices twice, by 5.6% in March 2018 and by 5.63% in October 2018, for average dual fuel users. We also reduced our Membership fee in May 2018 from £10 per fuel a month to £8.50 per month.
Will prices go up again in the future? Our tariff is variable, which means our prices can go down as well as up. If prices go down we’ll pass them on to Members immediately. Having a variable tariff means that all our Members are on a fair, competitive rate - based on wholesale prices.
How does the Pure Planet tariff work? We have one tariff for all our customers, so you’re always on our best rate. Our Members’ rate is the per kilowatt (kWh) unit rate. It’s a pass through rate, based on wholesale costs, which you pay what we pay for your energy. There’s zero markup. Our Membership fee is the standing charge. It’s the daily rate calculated and collected in 12 equal monthly installments each year. It covers: Your meter maintenance, our people costs, operating and systems costs, our low profit margin and VAT. Our Membership fee is £8.50 a month per fuel. For dual fuel members we have a dual fuel discount worth £30 a year.
Where do I find my tariff information? In your Pure Planet app, tap My account > Balance & Payments to see your tariff.
Why didn’t you warn me about a price rise before I switched? In the last few weeks, we’ve made a statement on our website and the price comparison sites: “The wholesale market has been rising in recent months, so it's likely that we'll need to increase our Members' rate in the near future.” We also posted a thread in the community last month about a possible rise. We’ve got more information about the rate change on our blog. You can also read our latest quarterly blog post about the wholesale energy market.
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