Pure Planet announces new 100% Green Fixed tariff


  • Community Manager
  • 7593 replies

Hi everyone

We’ve announced the launch of a new tariff today and I wanted to give you all a bit more information here in the community.

From today (14 May) anyone switching to Pure Planet will be offered the choice of two tariffs: our existing 100% Green Variable tariff or a new, 100% Green 12 month Fixed tariff.

We’ll be offering our existing Members the opportunity to switch to the new tariff in a few weeks from now.

Everyone will get an email from us this week to explain what’s coming, and another email when you can switch across, if you want to.

How much will the fixed tariff cost?

As with our variable tariff, it will vary slightly depending on which region you live in.
The average dual fuel user will pay £849 per year.




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.



Is the fixed tariff also green?
Yes. Just like our 100% Green Variable tariff, all our electricity is 100% renewable, and all our gas is 100% carbon offset.



Why is Pure Planet launching a new fixed tariff?
Until now, we’ve had one variable tariff.

We’ve had feedback from Members who want a fixed tariff to give them peace of mind. The amount of feedback we’ve had about this has gone up since the start of the Covid-19 pandemic.

And also, as we grow in Members, we’re mandated by Ofgem to launch a tariff for people who want to pre-pay for their energy. And from next January we’ll also be required to offer a tariff for what’s called ‘smart export guarantee’ - that’s for people with solar panels who can sell energy back to the grid.



When will existing Pure Planet Members be able to switch to the new fixed tariff?
Whenever a new member joins Pure Planet, it takes around 17 days for the switch to complete. This means if new members choose the 100% Green Fixed tariff from today (14 May), it'll be 17 days before they're on supply with us.
We just want to make sure these first fixed tariffs are up and running with no glitches, before offering it to all our Members, and we think that’ll be the start of June.



Will the fixed tariff have exit fees?
Yes. The exit fee is £30 per fuel. A fixed tariff gives our Members peace of mind, but it also means we’ll need to make sure we cover our costs. As with all fixed tariffs, exit fees don’t apply in the last 49 days. We’ve added an extra day, so there are no exit fees in the last 50 days.



Will the fixed tariff have split Direct Debit payments - higher in winter and lower in summer?
Yes, just like our 100% Green Variable tariff, we’ll take a little less in summer months, and a little more in winter months. This means your account matches your energy usage, and our Members don’t build up lots of debit or credit.



Are there plans for more tariffs?
As from now we’ve got a variable tariff and a fixed tariff.

In January 2021 we’ll start offering a smart export guarantee tariff for people who generate electricity at their home (from solar panels, for example) and want to sell it back to the grid.

We’re also running an electric vehicles pilot and we may, as a result of that, offer EV drivers a different tariff, too.


Check out the latest Pure Planet blog post announcing our new tariff.


You may like: How we’re supporting Members during the Covid-19 pandemic.


Update Thursday 28 May: All Members can now change to our 100% Green Fixed tariff. Details here.


49 replies

Userlevel 7
Badge +8
Thanks Marc, interesting development 👍👏
Userlevel 7
Badge +9
Thanks Marc and whats needs to be done needs to be done.

As PP stated once you have a fixed tariff then versions of the same need to be offered as an ongoing process with more to think about.

When the fixed tariff is available to existing members, will PP advise at some point what the % split is - fixed v flex?

​​​​​​​Cheers
Gotta say @Marc, you could have put the regions in the same order here as on the variable tariff. I wondered what was going on when I compared them... At least they both include VAT 😝
Userlevel 7
Badge +9
This will be good news for a lot of new and exising members as a lot of folk will like the stability of a fixed tariff.
​​​​​​​now which to go for ????
Userlevel 7
Badge +9
Jon1;53977:
This will be good news for a lot of new and exising members as a lot of folk will like the stability of a fixed tariff.
​​​​​​​now which to go for ????


I'm sticking with flex and hopefully won't regret it. I quite liked the original concept.
But hey ho concepts have to change with the times and the EV scenario is gaining ground.
Userlevel 7
Badge +8
Strutt G;53987:
I'm sticking with flex and hopefully won't regret it. I quite liked the original concept.
But hey ho concepts have to change with the times and the EV scenario is gaining ground.


Probably the same for me, however, I need to check the figures.
Sounds very helpful to many. I can see many members will shortly have their calculators out to check what is best.

Now do you fancy doing motor insurance as well?! I have just had my renewal notice from Tesco, where it is at present, and they want to put up the cost by just over £40 per annum. I already have quotes from other providers quoting me less than I am paying at present. Based on Tesco’s current offer the saving is heading toward £50 per annum. I shall be ringing Tesco this morning to tell them I am not renewing and why! You can’t email them to cancel. Like many companies they want you to ring them so that they can try and persuade you to stay! And there are only two or three companies behind all the motor insurance provision regardless of the name of the business quoting.

Oh, by the way, if there may be an EV tariff that covers electric cars can it cover bikes as well please?!!!
Userlevel 7
Badge +9
Sounds like you've got all the edges covered Richard, so just to add I reduced the miles driven down which saved £45 considering lock down.
On PP's fixed tariff I'd save £62 so I guess I'm hedging by staying on flex. What are the odds...
25 quid;53974:
Gotta say @Marc, you could have put the regions in the same order here as on the variable tariff. I wondered what was going on when I compared them... At least they both include VAT 😝

I think he's testing to see if we are paying attention: alphabetical expect for Scotland which comes after Yorkshire.
Thanks for the heads-up regarding the new fixed contracts Marc.


Strutt G;53995:
.
On PP's fixed tariff I'd save £62 so I guess I'm hedging by staying on flex. What are the odds...


I would save £19.71, to my mind it's not worth moving to fixed if I'm not going to cover the cost of the exit fee.
Userlevel 7
Badge +11
@Marc you haven't mentioned the dual fuel discount in your post.
Strutt G;53970:
Thanks Marc and whats needs to be done needs to be done.

As PP stated once you have a fixed tariff then versions of the same need to be offered as an ongoing process with more to think about.

When the fixed tariff is available to existing members, will PP advise at some point what the % split is - fixed v flex?

​​​​​​​Cheers


Hey @Strutt G

This is an interesting question!

In terms of a %age split, we wouldn't look to publish that info at this early stage of introducing a fixed tariff - plus with the future potential of SEG and EVs in the future, it could get a bit complicated!
25 quid;53974:
Gotta say @Marc, you could have put the regions in the same order here as on the variable tariff. I wondered what was going on when I compared them... At least they both include VAT 😝

@25 quid good spot - we've made note of that to make sure they're in the same order in future 👍

Just trying to keep you on your toes! 😋
woz;54029:
@Marc you haven't mentioned the dual fuel discount in your post.


The Membership Fee is staying the same for both tariffs, so the dual fuel discount will still apply (£30 discount per year) on the 100% Green Fixed tariff 👍
Userlevel 7
Badge +11
hi Nat, yes - I meant in marc's post above...just suggesting it should be included in that post.
Nataly;54034:
The Membership Fee is staying the same for both tariffs, so the dual fuel discount will still apply (£30 discount per year) on the 100% Green Fixed tariff 👍
why it has become necessary to have a fixed tariff for 12 months, when PP started itself as one tariif varible rate company ,which had no confusing tariffs .
Userlevel 7
Badge +9
Kesto81;54041:
why it has become necessary to have a fixed tariff for 12 months, when PP started itself as one tariif varible rate company ,which had no confusing tariffs .


Hey there Kesto81,

Scroll to the top of this thread and read Marc's post and the links to the blog etc.

This is just segment from the dove from above: -
​​​​​​​
Why is Pure Planet launching a new fixed tariff?
Until now, we’ve had one variable tariff.
We’ve had feedback from Members who want a fixed tariff to give them peace of mind. The amount of feedback we’ve had about this has gone up since the start of the Covid-19 pandemic.
And also, as we grow in Members, we’re mandated by Ofgem to launch a tariff for people who want to pre-pay for their energy. And from next January we’ll also be required to offer a tariff for what’s called ‘smart export guarantee’ - that’s for people with solar panels who can sell energy back to the grid.

​​​​​​​


Have a great weekend
Userlevel 7
Badge +11
My take on this probably won't be popular but here it is anyway.

If the prices charged by PP had remained competitive there would have been little reason and little increase in impetus from customers for PP to offer a fixed rate tariff.


In the event that a customer had to have certainty, since there is no exit penalty on the variable tariff, customers could move to a supplier who offered a fixed rate. Of course they probably wouldn't consider doing so if the above point was addressed.

In response to "We’ve had feedback from Members who want a fixed tariff to give them peace of mind. The amount of feedback we’ve had about this has gone up since the start of the Covid-19 pandemic.​​​​​​​"
A lack of money and being unable to pay your bills due to Covid is exactly the same whether you're on a variable or a fixed tariff, Right minded customers aren't worrying about whether their energy prices will rise, they probably haven't even considered it, and why would they, if you don't have money to pay the bill then you don't have money to pay the bill.

Customers haven't arrived here (with PP) by magic, one assumes that any customer who is with PP has switched at least once, so lack of enthusiasm or switching lethargy isn't an issue here, but recently losing customers due to noncompetitive prices has been an issue. The reason for customer loss in my opinion is not the absence of a fixed rate tariff or the lack of certainty, but noncompetitive pricing and the lack of timely action to fix that (notwithstanding that the discussion here is not about why it took so long, and yes I have taken the recent variable rate price change into account).


This new tariff should have been available to existing customers immediately, if not then I do hope PP are going to backdate the rates for any existing customer who, for example, choose to change to the new tariff within a month after it becomes available (so for example on or before 30th June). This would seem the fair sensible and decent thing to do.


I'm also very very disappointed that PP have felt it necessary to apply an exit penalty to this new tariff. Very. I think it's way out of kilter with the previous no-handcuffs ethos of PP. I see it as a move to PP becoming undifferentiated.

There is at least one reasonably well respected supplier that I could mention who offer a fixed rate without exit penalty.

If prices were to fall and PP announced a lower rate fixed tariff they could easily give existing customers the option to move to the new fixed rate tariff whenever and instantly without penalty (extending the end date). I hope this is what is intended. Again at least one other company allows this and quite rightly so, it makes a lot of sense both commercially to retain customers and (especially) in promoting loyalty.

​​​​​​​
I'm not arguing that a fixed tariff isn't welcome. There is a lot more that needs to be added to this thread, I'm quite surprised at the lack of response to this announcement, be it supportive or critical. Perhaps we all have more immediate concerns....


Userlevel 7
Badge +9
I can honestly say that I weighed up the implications and benefits of switching.
In hind sight I could of said or should of said that the fixed leaving penalty could of been called a leaving fee and be a lot less as in more fitting to PP's approach. Now thinking perhaps a months membership fee. Ponder ponder for what's it's worth.
The truth is the positivity of this community got the better of me and just thought oh well.
​​​​​​​Thanks for the prod..anyway I'm galloping back to the Big Y there's a dust storm in the ok corral.
Userlevel 7
Badge +9
Hi @Marc

When you say

as we grow in Members, we’re mandated by Ofgem to launch a tariff for people who want to pre-pay for their energy. And from next January we’ll also be required to offer a tariff for what’s called ‘smart export guarantee’ - that’s for people with solar panels who can sell energy back to the grid.

are you just indicating that PP will soon have to have more than one tariff anyway, thus losing the simplicity of one variable tariff? Or is there a direct connection between these requirements and offering a fixed tariff?

And a bit like Woz, I'm not convinced by the feedback from Members logic... You'll be offering a call centre next!

Hey ho

​​​​​​​Stephen

- - - Updated - - -

Does anyone know if an energy supplier has ever reduced its variable rate tariff to undercut its fixed-rate tariff? Just wondering...
Userlevel 7
Badge +9
My guess is that eventually there will be the following tariffs to pick from.

1 X variable,
1 X 12 mth fixed,
1 X econony 7 variable,
​​​​​​​1 X economy 7 fixed,
1 X E.v.
and finally an SEG price point.

some of these will be mandated and other will simply be demanded if you have an EV rate then why not E7. SEG is compulsory once the threshold has been reached.
no problem with one of each its when multiple tariffs of each type become avilable it gets annoying and impossible to know which is best for ones own circumstanes
Long term energy prices have nosedived in the last 3 mths for obvious reasons but at some point they will go back up which will be the time when the variable tariff will be cheaper than the current fixed tariff offer. I say current fixed offer as i would expect the 12 mth tariff rates would be updated and altered on the 1st of each month.

i also have some more extreme ideas as to the long term direction of PP but they are proberly
best not discussed in public.
stephenrand;54075:

are you just indicating that PP will soon have to have more than one tariff anyway, thus losing the simplicity of one variable tariff? Or is there a direct connection between these requirements and offering a fixed tariff?


Perhaps the logic is that if PP is going to be mandated to introduce 'new' tariffs in a few months, it would be best to offer the 'not-mandated' fixed tariff beforehand to see what issues it creates?
Issuing that tariff initially to 'new' customers, rather than existing ones, may either make the process easier, because Pure Planet can limit the number of 'new' contracts, or may be something required by OFGEM - I can't speak for anyone else, but personally I'm no expert on the myriad rules energy companies have to meet.

My previous supplier limited its 'fixed' contract to new customers with Smart Meters - so I assume there must be some point at which a 'limit' on fixed-term contracts is either accepted, or possibly 'required,' by OFGEM.

Whatever Pure Planet's actual reasons, I presume they are trying to have something which has bitten other providers in the bum happen to them, mainly having the system fall over in the middle of introducing changes to the tariffs - something that proves to be both embarrassing, and expensive.
Userlevel 7
Badge +9
My previous supplier limited its 'fixed' contract to new customers with Smart Meters - so I assume there must be some point at which a 'limit' on fixed-term contracts is either accepted, or possibly 'required,' by OFGEM.


the limits are only applied to ensure a profit is made. Companies will buy in advance enough energy to supply 5000 average users for a year ( example size only ) at a cheap rate then offer it to their new customers at the reduced teaser rate and end offer when 5000 have signed up. They want smart meter customers as they historically are less likely to switch due to confusion and lack of understading in some cases. Also so that they have accurate info to ensure they dont oversell the teaser rate and make a loss on the initial bulk purchase.
its all about hardcore and sometimes very dangerous hedging policies which as i remember SSE once got wrong 2 years ago which was a factor in the decision to sell the retail business as if memory serves it cost them quite a few £ million.
Userlevel 7
Badge +11
and on that note...

​​​​​​​
Userlevel 7
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https://www.sciencenews.org/article/quantum-pigeonhole-paradox-photons

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