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Pure Planet wholesale energy market blog post April 2021 - cost of energy has soared over the last 12 months

Pure Planet wholesale energy market blog post April 2021 - cost of energy has soared over the last 12 months
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Hi everyone

We’ve published our latest Pure Planet blog post about the wholesale energy market and how this impacts the electricity and gas prices we charge our Members.

We thought this would be a good time to look back at what’s happening in the market over the past year, as we know a lot of our Members will be nearing the end of their fixed tariffs which were first introduced in May 2020.

The latest Pure Planet blog post about the cost of energy has some really useful information.

In summary, energy prices have shot up over the last 12 months.

Electricity wholesale prices are up 61% and gas is up 56%

That’s meant retail prices have climbed too - right across the market, and the latest Pure Planet fixed tariff is 19% higher than this time last year. The graph below shows a steep rise over the last six months.

Wholesale energy prices since November 2020

Other important bits of information:

  • More domestic energy is being used (due to the Covid-19 pandemic). It’s normal that prices go up when there’s more demand.
  • There’s been an increase in the cost transporting energy to our homes. These increases have been set by the Government.

We’re hoping our latest blog post will help to explain why Members will see a higher fixed tariff offer when the current tariff comes to an end.

Do check out the blog post in full as it has much more detail, including how we compare with other suppliers, and how our variable rate compares against the Ofgem price cap. 

And don’t forget, all our electricity is 100% renewable and our gas is carbon offset. We’re also a Which? Recommended supplier for two years running.

You may also like: How to renew your Pure Planet 100% Green fixed tariff 


18 replies

Thanks for the update @Marc

After enjoying my last Fixed tariff, the question seems, “do I feel lucky”?
Are prices going to continue rising making the tie-in and £37 extra for fixed worthwhile?

🤔 

Oh good, it’s one of those threads that comicifies emoji 🤯

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Thanks for the update @Marc

After enjoying my last Fixed tariff, the question seems, “do I feel lucky”?
Are prices going to continue rising making the tie-in and £37 extra for fixed worthwhile?

🤔

Oh good, it’s one of those threads that comicifies emoji 🤯

Wink wink nod nod...

Thanks for the update @Marc

After enjoying my last Fixed tariff, the question seems, “do I feel lucky”?
Are prices going to continue rising making the tie-in and £37 extra for fixed worthwhile?

🤔

Oh good, it’s one of those threads that comicifies emoji 🤯

Hi @25 quid I’m no fortune-teller, and all this is way, way beyond my pay-grade (!) but if you check out the blog post you’ll see that our pricing team are currently estimating that the cost of wholesale electricity for this Winter coming (2021-22) is currently looking up to 61% higher, and gas up to 56% higher, than at the same time last year.

I’m ‘liking’ these posts for the honesty of the information, not the news they are bringing.

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nudge nudge a poke and a nudge-nudge

Show me your tea-leaves @Marci Marc

 

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Thanks for the update @Marc

After enjoying my last Fixed tariff, the question seems, “do I feel lucky”?
Are prices going to continue rising making the tie-in and £37 extra for fixed worthwhile?

🤔

Oh good, it’s one of those threads that comicifies emoji 🤯

Hi @25 quid I’m no fortune-teller, and all this is way, way beyond my pay-grade (!) but if you check out the blog post you’ll see that our pricing team are currently estimating that the cost of wholesale electricity for this Winter coming (2021-22) is currently looking up to 61% higher, and gas up to 56% higher, than at the same time last year.

Great blog post - thanks

 

Even more reason to get your cheap(er) overnight time of use tariffs online so consumers are incentivised to help you balance the demand.

My green fixed tariff has increased by 42% - £800, I’ve now found a significantly cheaper alternative. Disappointed that I have to leave.😟

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My green fixed tariff has increased by 42% - £800, I’ve now found a significantly cheaper alternative. Disappointed that I have to leave.😟

There seems to be a theme here, several customers have now said they are leaving due to finding a cheaper deal

Userlevel 7
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My green fixed tariff has increased by 42% - £800, I’ve now found a significantly cheaper alternative. Disappointed that I have to leave.😟

There seems to be a theme here, several customers have now said they are leaving due to finding a cheaper deal

Yes, I am considering it, especially as how I missed  the 16m fix , as it was only available for 7 days.

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@Angelabikerbabe  (and @Duppy anyway...)

 I’ve just done a fair amount of research, granted it was all based around my own postcode area so it won’t be fully representative. During the course of several days outlier cheaper variable deals are slowly being pulled.

Anything with a fix isn’t that far away from PP’s pricing, I only found 2 companies who I would trust where the saving was enough to tempt but still nowhere near the variable tariff

I hesitate to advise as who knows what will happen to prices (if they go up much more I think Enoch Powell’s famous mantra will rear it’s head.

So if stuck at the end of your tariff and it’s going to change anyway the best option at the moment in my opinion is to move/default to the variable deal while it’s still available because that will at least give some breathing space. I can’t see that lasting much longer but don’t PP hold the price for xx weeks if you’re on it? (I can’t remember how long is it 4 or 6 weeks?)

It’s tough out there and a word of warning, make sure if a (non-comp-site-special) tariff shows on a comparison site that it is actually still available as some sites can lag…

It might all be moot if the variable tariff goes up this week...

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@woz 

My fixed tariff doesn't end until September, I think the reply above was meant for @Angelabikerbabe .

I dread to think what the cost will be in September

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@Duppy (this time)

Supply and demand...prices might be lower, but my crystal balls are away being polished...

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Polished balls are good 🔮🔮🔮🔮🔮🔮🔮👍🤣

Just had my renewal, interesting the blog post suggests the average increase on the fixed price tariff is 19%.  I'm no mathematician, but £1000 this year and £1350 next year is nearly double the 19% average.   There must be some lucky people out there only getting a single figure rise!

Hi @minime0007 and welcome. There’s more agonising over here too: 

 

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hi @minime0007 

It all depends whether you were on a fixed tariff and the timing.

I could do a table for the fixed tariffs but there are too many of them so...

Here’s the history of the variable tariff showing the average price (averaged across all geographic areas) for an Ofgem medium user, the percentage increases are referenced to May 2020

MAY 2020 £902.20 0%
OCT 2020 £936.47 3.8%
JAN 2021 £993.98 10.17%
MAY 2021 £1087.21 20.5%

 

hi @minime0007 

It all depends whether you were on a fixed tariff and the timing.

I could do a table for the fixed tariffs but there are too many of them so...

Here’s the history of the variable tariff showing the average price (averaged across all geographic areas) for an Ofgem medium user, the percentage increases are referenced to May 2020

MAY 2020 £902.20 0%
OCT 2020 £936.47 3.8%
JAN 2021 £993.98 10.17%
MAY 2021 £1087.21 20.5%

 

I am on a 12M fix and the "new" 12M fix is £350+ or 35%+ more.  If the average increase is 19% some people must have minimal like for like tariff increases.  I also don't believe it costs more to provide energy in different parts if the country, seems ridiculous to me!  There are several companies on the MSE energy club which come in far cheaper, whilst I haven't heard of them I hadn't heard of Pure Planet before I switched here, through MSE energy club, 18 months ago!  Looks like I'll be off...

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hi @minime0007 

It all depends whether you were on a fixed tariff and the timing.

I could do a table for the fixed tariffs but there are too many of them so...

Here’s the history of the variable tariff showing the average price (averaged across all geographic areas) for an Ofgem medium user, the percentage increases are referenced to May 2020

MAY 2020 £902.20 0%
OCT 2020 £936.47 3.8%
JAN 2021 £993.98 10.17%
MAY 2021 £1087.21 20.5%

 

I am on a 12M fix and the "new" 12M fix is £350+ or 35%+ more.  If the average increase is 19% some people must have minimal like for like tariff increases.  I also don't believe it costs more to provide energy in different parts if the country, seems ridiculous to me!  There are several companies on the MSE energy club which come in far cheaper, whilst I haven't heard of them I hadn't heard of Pure Planet before I switched here, through MSE energy club, 18 months ago!  Looks like I'll be off...

I wasn’t doubting your numbers, (although I was going to ask if the quote last year was based on the same number of units) I just wanted to illustrate that it’s all down to unlucky timing, if you’d have fixed a month or so earlier your increase would have been maybe 10-12% less, but the other way of looking at it is you had the benefit of the lower prices for longer

Post back with what you find?

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