We’ve announced a change to our Members’ rate — that’s the per kWh unit rate you pay for your energy — and I wanted to give you more information here in the Community.
We’re dropping our gas rate by an average of 8% and our electricity rate by an average of 1%.
All our Members will get an email over the next day or two to explain the new rates.
When do the new gas rates take effect?
The change is effective from 1 May for all existing Members. New Members joining us from today — 14 April 2020 — will be quoted and join on 1 May at the new rates.
What are the new rates?
Why is Pure Planet lowering its rates?
Our single variable tariff is based on the wholesale prices - we sell gas and electricity to our Members for the same amount it costs us to get it to their property.
Wholesale gas and electricity prices have continued to fall throughout the first quarter of 2020, partly due to a reduction in demand from warmer weather. This resulted in gas storage filling up sooner than expected.
Check out our most recent blog post on the wholesale energy market.
Will Direct Debit payments change?
For now we’re not changing DD payments as a result of this rate change. We regularly review our Members’ payments and we’ll get in touch if we need to adjust your payments to keep you on track.
With the new tariff how does Pure Planet compare to other suppliers?
Today’s announcement means the average dual fuel household on supply with Pure Planet now pays £902 a year — a saving of £225 on the Ofgem price cap of £1,127, and a saving of £222 on the Big 6 standard variable tariff of £1,124.
Pure Planet Members will save an average of £50 with this latest price drop. Higher users will save more.
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.
With the new rate do I need to send new meter readings straight away?
No. If you can’t give us a meter reading today don’t worry. We’ll use estimated readings calculated at the lower gas rate. Your next statement will show different days calculated at different rates.
Will prices go up or down again in the future?
Our tariff is variable, which means our prices can go down as well as up.
How does the Pure Planet tariff work?
Our Members’ rate is the per kilowatt (kWh) unit rate. It’s a pass through rate, based on wholesale costs —you don’t pay more than we pay for the energy you use.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 a month per fuel.
For dual fuel Members we have a dual fuel discount worth £30 a year.
Is the Membership fee changing too?
No, this is staying the same.
Where do I find my tariff information?
In your Pure Planet app, go to Menu > Usage and scroll to the bottom to see your tariff.
That’s it for now. Any questions? Let’s talk about them below.