Announcing Members’ rate increase to variable tariff for electricity


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Hi all

We’ve announced a change to our Members’ variable rate for electricity - that’s the per unit rate you pay for your energy - and I wanted to give you more information here in the Community. 

Our variable rates for electricity are increasing in all regions. Gas unit rates are not changing.

We’re letting our Members know four weeks in advance to give you time to plan. 

When do the new electricity rates take effect?

The change to our variable rate for electricity is effective from 4 November 2020 for all existing Members. New Members joining us from today - 7 October - will be quoted and join at the new rates.

What are the new rates?

Pure Planet variable tariff

For a typical dual fuel Member using the Ofgem average of 2,900kWh of elec and 12,000kWh of gas a year, the increase is 3.8%, or £34 a year.

All our Members on our variable tariff will get an email over the next few days with the details about how their annual energy cost is affected.

We are not changing any Direct Debits.

Why are we changing our prices?

Over the past six months, as Covid-19 has unfolded, electricity and gas prices have fluctuated, but have recently started to climb upwards. 

This uplift in prices is due to the recent easing of lockdown measures, while the efforts of some overseas countries to kickstart the economy by ramping up production have led to a rise in gas prices.

Non-commodity costs – which make up a large part of your bill – have also been going up. These are the costs of getting the energy to your home and other regulated costs, which are beyond any suppliers’ control, and can make a big difference to the overall costs of tariffs at a retail level.

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 for our variable rate?

Our last increase to the variable tariff was announced in November 2018 (and didn’t come into effect for existing Members until January 2019).

Since then we’ve also reduced the rate Membership fee in February 2019; and we also cut rates for both electricity and gas in May this year.

Will prices change again in the future?

With our variable tariff, 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 a variable tariff and a fixed tariff. 

For variable tariff Members, the 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. 

Will Direct Debit payments change?

No. We aren’t making any change to their DD payments as a result of this price change. But, we regularly review our Members accounts and will be in touch if we need to adjust their payments to get them back on track. 

Where do I find my tariff information?

In your Pure Planet app or web account, choose Menu > Tariff & usage

I joined Pure Planet on the variable tariff with Price Protection. When do the rates increase for me?

We announced our Price Protection in November last year to give people switching to Pure Planet more reassurance. This means you’re protected from the rate increase for two months.

This change will take effect on the day you come off your Price Protection tariff, or 4 November, whichever is later.

We’ve got more information about the wholesale energy market on our blog

Got any questions? Let’s talk about them below.

Check out this FAQ which compares the variable tariff with out latest fixed tariff.

You may also like: Guide to the Pure Planet tariffs


32 replies

Very clear @Marc.

Happy I’m fixed… My mum will be less happy though. Hey ho, it’s a rollercoaster. Scream if you wanna go faster!

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I’m still happy to stay on variable for now 👍

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@Marc May I suggest also putting the current fixed table in this post as a comparator or a link to it in here?

Never mind...here it is..

https://community.purepla.net/pure-planet-prices-44/members-rates-and-membership-fee-what-are-they-10325

Shame my app quotes ex VAT prices. Come on, let’s use the same units everywhere!

I had to calculate my fixed is 1p per unit cheaper...

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Cometh October cometh the cold...

Prices shown are subject to E&OE, this is not an official PP chart

Quotes for Weddings, Christenings and Barmitzvahs available on request...

Is the sign of the last column back to front? To me –ve implies cheaper.

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Thanks Marc for the comprehensive report and information.

Yes, no doubt most things will rise now due to Covid but this does seem extremely modest and we thank PP for keeping charges as low as they possibly can.  :)

@Marc May I suggest also putting the current fixed table in this post as a comparator or a link to it in here?

Never mind...here it is..

https://community.purepla.net/pure-planet-prices-44/members-rates-and-membership-fee-what-are-they-10325

Good shout @woz and thanks for suggesting it! I’m adding it to the end of the ‘main’ post too :thumbsup:

Is it a coincidence that on the very same day I got my Dad to switch to Pure Planet I received an email saying my payment will increase by £46 per year, almost as much as the £50 I earned for recommending my Dad?

 

I see from my latest email that there is to be a substantial increase to the cost of my electricity. Having read through your blog regarding the reasons it clearly states that both gas and electricity prices plummeted at the start of the pandemic in yet none of these savings were passed onto customers? Could someone explain why there was no price cut when prices were low and as soon as they start to go up you deem it necessary to raise the prices by around 10%?

Hi @Turnstile21 

We would have been v careful at the start of the pandemic due to volatility. Nobody really knew what was going to happen. Also, as stated in the blog, while wholesale costs dropped, other associated costs didn’t.

This graphic helps with that a bit.

What makes up energy bills (Ofgem)

 

(BTW I’ve add your post about the variable tariff increase to this thread. It’s just to keep the conversation in one place)

Is it a coincidence that on the very same day I got my Dad to switch to Pure Planet I received an email saying my payment will increase by £46 per year, almost as much as the £50 I earned for recommending my Dad?

 

Hey @Squela and welcome to the Community! Just to let you know, I’ve moved your post to our thread all about our recent variable tariff change - hopefully it helps explain the rise in your prices. It’s worth noting we aren’t changing your monthly Direct Debit as a result. 

It really is a case of timing, we wouldn’t change the tariff available depending on your account activity:thumbsup: There’s also more info on our Members’ rates here

Hope that helps? 

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Is the sign of the last column back to front? To me –ve implies cheaper.

@25 quid 

I’m not sure what you mean, the overall cost of  the fixed tariff is that percentage less than the fixed, (at that annual consumption), if the minus sign wasn’t there  it wouldn’t it imply that it was  more expensive? I could put 95% instead of -5%, do you think that would be clearer?

% can be interpreted so many ways. Who knows what’s right. Maybe make the label unambiguous?

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% can be interpreted so many ways. Who knows what’s right. Maybe make the label unambiguous?

I had very little space for words, originally I would have put “how much % difference to variable, (which I suppose supports the same comment you made originally) but it wouldn’t fit. I’ll give it another go…

how about this?

 

 

thanks for the feedback btw

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Is it a coincidence that on the very same day I got my Dad to switch to Pure Planet I received an email saying my payment will increase by £46 per year, almost as much as the £50 I earned for recommending my Dad?

 

nothing in life is a coincidence if you know where to look... but no one knows where to look...

Userlevel 7
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% can be interpreted so many ways. Who knows what’s right. Maybe make the label unambiguous?

I had very little space for words, originally I would have put “how much % difference to variable, (which I suppose supports the same comment you made originally) but it wouldn’t fit. I’ll give it another go…

how about this?

 

 

thanks for the feedback btw

@25 quid sorry forgot to add your nudger...

% can be interpreted so many ways. Who knows what’s right. Maybe make the label unambiguous?

I had very little space for words, originally I would have put “how much % difference to variable, (which I suppose supports the same comment you made originally) but it wouldn’t fit. I’ll give it another go…

how about this?

 

 

thanks for the feedback btw

Sounds good. In fact, relooking at what you had before also looks good. I think I was having a bad day yesterday...

I have been with Pure for a little over 2 years.  Your electricity rate will now have gone up 28% since I joined.  Something does not make sense in the explanation saying it is just due to an amorphous increase in costs. Ofgem prices of electricity have halved during that period so what in your operating model has caused this increase?   What actions are you going to take to ensure we will not see the cost of our electricity go up by another 28% or more in the next two years?

Userlevel 5

Gutted, I'm all electric so means by your calculations £137 a year more. In your speech you say price of gas gone up so why not gas changing too? Something seriously needs to happen to make electricity cheaper if we are meant to be heading all electric route by 2050. It's not at all appealing as it is!

Just in time for the launch of your EV Tariff?

I’ll take this price hike if it means overnight rates of 5p/kWh !

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Gutted, I'm all electric so means by your calculations £137 a year more. In your speech you say price of gas gone up so why not gas changing too? Something seriously needs to happen to make electricity cheaper if we are meant to be heading all electric route by 2050. It's not at all appealing as it is!

hi @JennyR68 

hi Jenny

That’s a bummer and if your calc’s are correct it’s twice the leaving penalty on the fixed tariff.

Have you done any comp site comparisons?

I have been with Pure for a little over 2 years.  Your electricity rate will now have gone up 28% since I joined.  Something does not make sense in the explanation saying it is just due to an amorphous increase in costs. Ofgem prices of electricity have halved during that period so what in your operating model has caused this increase?   What actions are you going to take to ensure we will not see the cost of our electricity go up by another 28% or more in the next two years?

 

Hi @Tom100 

What’s increased is the costs which suppliers have to pay and do have any control over.

Our PP Blog post referred to above and linked to again here has more detail. But, to summarise here:

In addition, renewable subsidy policy costs, which ensure renewable power plants make a stable income even when electricity prices drop, increased as a result of lower wholesale costs.
Also, as these network and policy costs are shared among electricity users across the whole country, the low usage level during the early stage of the pandemic means that the costs are shared across less demand, resulting in a further increase in the unit costs for these charges.
The result of all this is that the amount of your bill which actually goes towards paying for the cost of underlying electricity or gas is reduced as a proportion of your overall bill. It’s less than 40% for a dual fuel bill, typically, and only around a third for electricity-only customers

Going forward we’ll keep working v hard to keep our costs down and pass on our savings to Members. We’re still a digital-first energy supplier so, unlike some of our competitors, we don’t pay for vast call centres. Which will help.

And of course we continue to ‘hedge’ in advance. We did run a community Q&A on how we buy your energy which you may like to check out, too. :thumbsup:

Userlevel 5

Gutted, I'm all electric so means by your calculations £137 a year more. In your speech you say price of gas gone up so why not gas changing too? Something seriously needs to happen to make electricity cheaper if we are meant to be heading all electric route by 2050. It's not at all appealing as it is!

hi @JennyR68 

hi Jenny

That’s a bummer and if your calc’s are correct it’s twice the leaving penalty on the fixed tariff.

Have you done any comp site comparisons?

It's their calculations not mine, If our house actually ever got comfy warm I might not mind so much, but just can't afford to turn the heating up! Am waiting a few weeks for the rate to change and give time for others to follow suit, presume the same problems given will effect everyone? Before I start the hunt for cheaper, if there's anything out there. 

This happened to anyone else?

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