I thought the idea was that the fee covered the fixed costs of running PP. Why then do some tariffs charge £6.10 some £6.67 and some £8.00? There may be others too. Do Compare the meerkat people take less looking after? Are the rest of us subsidising them?
To me, all this trickery seems to go against the previous ethos of PP.
Best answer by Marc
Presumably the intention is to convince people to sign up for ‘fixed-term’ contracts, thus guaranteeing Pure Planet an income stream?
This is spot on
Exactly right. People are looking for fixed term contracts, and we have to compete against other suppliers to win their custom! We’re able to agree promotions with certain price comparison websites and our pricing team use their financial wizardry (or so it seems to me, anyway) to make small adjustments to our Membership fee and/or rate. With a lot of these promotions we have a number in mind. Once that number’s hit, we have to withdraw the promotion.
But fixed tariffs at lowest possible prices is what people want. And we have to be competitive and adaptable to stay in business.
As an aside, one thing that really does interest me here is that when we get to a system of smart meters in the majority of homes, and dynamic pricing from renewables (to reduce load on the grid) and energy produced by Members’ own PVs and so on, then it’s really going to be the opposite of fixed terms. It’s going to constantly change depending on time, fuel mix, demand, etc etc.
(Just my two pennies’ worth!)