Members’ rate change

  • 14 March 2018
  • 37 replies
  • 25226 views

  • Community Manager
  • 6299 replies
Hello everyone,

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


Firstly, we’re not changing our monthly membership fee. That’s staying at £10 per fuel a month (including VAT).


Secondly, our dual fuel discount stays at £30 a year.


We’re only adjusting our Members’ rate (the unit kWh rates for renewable electricity and carbon offset gas). As you know, our Members’ rate is based on wholesale energy rates. There’s zero markup on the energy you use. You pay what we pay.

New rates:





Wholesale energy costs have risen significantly over recent months and as our variable tariff is based on these costs, we’ve decided to make an increase to our members’ rates, to reflect the price we pay for your energy.

You can read much more detail on the background to the rate change in our blog, here.

The rate change will take effect for all existing members on 31st March 2018. We’re emailing all members today to explain the rate change.

Anyone getting a quote and joining Pure Planet today will see only the new rate, which will be in effect by the time their switch completes.



We're not going to be changing everyone's Direct Debit because the increase is less than 1p per kilowatt hour.

We’re also going to be reviewing all members’ accounts over the next few months to make sure your balance and payment amounts are in line with your actual usage.


All members should give us latest meter readings - if you are not already doing so - by submitting them through the app, to ensure that your account is up to date.

We’ll contact you if we think anything needs to change.

That’s it for now. Any questions? Let's talk about it below.

Read more: We're lowering our membership fees


37 replies

Hi Marc

In terms of % increase this is huge, larger then a lot of your competitors would make. You have highlighted that other amounts won't change but they make up a fraction of the total cost for most customers anyway. I absolutely understand your business model and exposure to wholesale price fluctuations but surely the wholesale price hasn't moved by 9.52% and 6.47% respectively? Could you please advise how regularly these swings will be and will they always be this volatile. Ive been a customers only 3 months and im already being told im paying significantly more then originally envisaged. Is this model sustainable when customers may be budgeting for energy and then being hit with huge swings with 15 days notice. thanks.

0.095238095
9.523809524

0.064706393
6.470639258

Kind Regards

Riz
Hi @Riz
Thanks for posting.
Wholesale rates are up significantly  over the past year. They’ve gone up by 10% against January 2017 rates, and around 20% from their low point last summer.
We can't give forecasts of when prices will go up or down.
Today’s wholesale energy prices reflect all the available information on demand, supply, and all the other variables which affect the price.
You may like to read our blog post on historical wholesale rates, it gives some helpful insight on market pricing.
We’d love to give certainty around prices, but because there are so many unpredictable variables to wholesale energy pricing, we can’t.
My annual costs are projected to rise by £101. But the new direct debits you are proposing will add £457 to my bills. This cannot be justified
I’m a little confused. If we pay what you pay as a provider, how come 4-5 providers are now cheaper that pure planet and they have no members rate and some are still renewable....

Tbh it’s such a large increase im looking at switching potentially
Hi Marc,

I totally understand that you need to put prices up but I’m quite confused with my new forecast.

*It states that I will pay an additional £87 per year - from £1358 - £1445
....but my present yearly forecast is only £852.72 - not £1358?
*You want to increase my monthly DD from £56.85 - £96.34 (warmer months) and from £85.27 - £144.50 (cooler months). That’s an increase of £39.49 and £59.23 respectively per month!!!

Please could you clarify for me if this is correct?? Or if you can’t answer this query, who can?

I’m sure you will understand that if this is correct, I may well be switching suppliers quite soon.

Thanks for now
Hi @DG381 and @nattydc
Thanks for the replies. Really good questions. Putting specific account details aside, you're both asking (if I read this right) why it is that your annual cost will increase, but the monthly payments are going up by more than is needed to pay for this?

Original payments are based on the usage figures you'd provided when you received your quote.
After you switch, we're sent your usage history and your meter readings, and we're using this to base your new payment amounts on.
We want to ensure that members are paying the right amount for the energy they use, to avoid falling into debt.
We review members' Direct Debit payments every six months. Please give monthly meter readings because these help to keep your account as accurate as possible.

Hope that explains it a bit more?
I thought when i signed up I was guaranteed the same rate for 18 month can you explain how I am now facing an increase i have only been with you for two months.
regards
Amageek78;4863:
I’m a little confused. If we pay what you pay as a provider, how come 4-5 providers are now cheaper that pure planet and they have no members rate and some are still renewable....

Tbh it’s such a large increase im looking at switching potentially


Hi @Amageek78
Nice username!
It is possible that other providers are using fixed rate tariffs.
Fixed tariffs don't prevent payments going up if you increase the amount of energy you use.
They're used to present attractive deals but then lock people in with exit fees, and they're aimed at new customers, not current ones.
We don’t agree with a system that provides ‘teaser’ rates for new customers at the expense of existing customers.
But of course they may be the right option for you. We won't charge you an exit fee if you choose to switch
m300raj;4869:
I thought when i signed up I was guaranteed the same rate for 18 month can you explain how I am now facing an increase i have only been with you for two months.
regards


Hi @m300raj
We offer one tariff for all our members. It’s a variable rate, based on wholesale costs.
What made you believe it was the same rate for 18 months?
It was what i asked for when I used the price comparison site this has now got me looking into changing again as i like to know what i will be paying.
No that doesn’t help. We have only been with you for a month so you can’t extrapolate like this. I understand the wholesale rate has changed but it is completely cynical of you to gouge customers by changing the usage at the same time. Your advice re: unit price said nothing about usage so your answer holds no water. How can I speak with a human being about my account?
Hi Mark,
Thank you for your response but honestly it doesn’t really help. Regarding submitting meter readings...I have done this and according to my last month’s statement - I was in credit.

I really do need some answers which are specific to my account or I’m afraid I will be leaving Pure Planet. Which is a shame as I really liked your ethos and wanted to support you with my custom.
Hi @nattydc and @DG381
No probs
To contact the team please head to Help in the app and type 'message the team' and they will respond when they can. It’s not a live-chat service but someone will get back to you.
Hi Marc, I've received the weirdly inconsistent price rise email. It's says my spend will rise by £99 but in fact my annual bill will go up by £180, a 13% rise. Where on the app or bill do I find out exactly how much gas and electricity you're predicting I'll use to reach the new figure? Thanks
It’s a shame that I can’t even tell what I’m using as your meter reading forms still haven’t updated my useage since I joined back in December.

I dread to think what Shoet fall I’m going to be paying if it’s a signifant increase.

Time to switch.
Userlevel 6
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I haven't received any email myself, has it been sent to all?
Userlevel 7
Badge +8
I received an email re the price increase, despite my direct debit not changing, so think it’s sent to all Gabolino yes, even if only for information.
Gabolino;4905:
I haven't received any email myself, has it been sent to all?


Hi @Gabolino
Cheers for posting. Yes, sent to all members. I will flag this with the team.
While I'm doing that could you quickly check your spam folder (or, if you're a Gmail user, your 'promotions' folder) - it may have gone in there?
Userlevel 6
Badge +2
Marc;4915:
Hi @Gabolino
Cheers for posting. Yes, sent to all members. I will flag this with the team.
While I'm doing that could you quickly check your spam folder (or, if you're a Gmail user, your 'promotions' folder) - it may have gone in there?


Got it. It's in promotions ! Any idea how I can fix this?

I think my quote (given last year) is higher than my actual usage so I'm hoping overall there's no change
Steve H;4901:
Hi Marc, I've received the weirdly inconsistent price rise email. It's says my spend will rise by £99 but in fact my annual bill will go up by £180, a 13% rise. Where on the app or bill do I find out exactly how much gas and electricity you're predicting I'll use to reach the new figure? Thanks


Hi @Steve H
Great question 👍
The 12 month spending projection is on every monthly statement. We have guide in our knowledge hub which shows how to read the statement.
Here's how the projection is done (this is a general explainer for all members, not specific to your account):

The estimated electricity usage (known as Estimated Annual Consumption, or EAC) and the estimated gas usage (known as Annual Quantity, or AQ) comes from historical energy usage held on a centralised industry database - from previous suppliers, and from previous usage.
Also, when a person switches to a new supplier they are asked to provide their own estimated energy use. This information, and the central database information, helps us to predict their annual estimate.
Once a member is on supply and sends us regular meter readings we can see their actual energy usage.
Every time a members sends us a reading we can better predict the current and future usage because the EAC and the AQ is updated - and this means a more accurate forecast.
This is why we ask for regular monthly meter readings.
If people do not send us regular meter readings, then their forecast is based on estimates, until their usage is reviewed.
At the time of review if we then see that a member's actual energy usage is higher than the estimated usage, we are obliged to help them avoid getting into debt.
For this reason we have reviewed some members Direct Debits as part of the rate change.

I hope that helps!
Hi @Joseph S
Each time you submit a meter reading in the app by going from Menu > My account > Send a meter reading you should see the last reading that was submitted.
When did you last submit a meter reading?
I've submitted meter reading three times now It updates but I still have estimated figures. The gas in particular says that I've not used anything. I've also sent photos of the meters as well.

Please can you sort this out. I'm really getting annoyed and keep wasting my time sending messages and meter readings
Joseph S;4927:
I've submitted meter reading three times now It updates but I still have estimated figures. The gas in particular says that I've not used anything. I've also sent photos of the meters as well.

Please can you sort this out. I'm really getting annoyed and keep wasting my time sending messages and meter readings


Thanks @Joseph S
Yes this will get sorted. I've flagged this up with team.
I'm going to send you a DM in a sec as there is some account info which I don't want to put in a public forum.
When I signed up to Pure Planet I were signing up to a fixed rate so why are you changing the rules ?
Thanks for the explanation Marc. I'll be interested to see if my predicted usage has grown in my March statement as PP are clearly predicting higher annual use then present in my Feb statement. A 13% rise less than 3 months into my use of your services is not good as you have not allowed a longer use pattern to build plus last statement says I'm over £100 in credit! PP could be my shortest switch yet.

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