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Why do different tariffs have different memberships fees?


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.

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Best answer by Marc 4 May 2021, 09:36

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 @Gwyndy 

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.

I agree @25 quid that it is a little confusing. And I do sometimes wish for the simpler days of ‘one variable tariff’ @Bev 

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!)

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I mentioned this before on another thread, but can’t for the life of me remember which now, our Notes. Couldn’t ageee more, as the fixed membership fee (an easy ten Notes when I joined) was seriously the eye catcher for me. I was frustrated by the standing charges of other companies, in PENCE, and to four decimal places 🙄🙄🙄. This, from PP,, was new, and you knew just where you were, and could FULLY focus on the rate per kWh. Loved it. 

Once the fixed tariffs started to be introduced, this showed a moving away from the one size fits all variable rate, but now introducing variable membership too, it doesn’t fit with the lovely genuine cosy feel of what PP is all about IMO. 

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It would be interesting to know how the membership fee is worked out, that may explain the difference.

Surely better to treat customers equally, while still offering choice.

 

 

 

I mentioned this before on another thread, but can’t for the life of me remember which now, our Notes. Couldn’t ageee more, as the fixed membership fee (an easy ten Notes when I joined) was seriously the eye catcher for me. I was frustrated by the standing charges of other companies, in PENCE, and to four decimal places 🙄🙄🙄. This, from PP,, was new, and you knew just where you were, and could FULLY focus on the rate per kWh. Loved it. 

Once the fixed tariffs started to be introduced, this showed a moving away from the one size fits all variable rate, but now introducing variable membership too, it doesn’t fit with the lovely genuine cosy feel of what PP is all about IMO. 

Just dawned on me why you keep calling @25 quid “our Notes”. My brain is slow!

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Hee hee hee, Rich, hee hee hee 😉😉🤣👍

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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.

Its certainly a grind now that simplicity has left the arena. Keeps me a little occupied with spread sheets, so thats a plus.  Lets face it, the regulars who post are not simplistic when it comes to crunching the numbers and there are some nice pluses. Little tricks maybe...enticements, its a business at the end of the day. When I got my 2nd renewal prompt I thought I was the special one - deluded for a few seconds was nice.

Yep these variations in members rates go against the grain. New member, existing member, loyal member, returning member. Member remember. Then again thinking out loud, with no data as in increase in members more than covering fix costs etc - maybe benefiting tariff wizardry.  

Puzzling approach!

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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.

@Marc @Nataly ?

As PP customer numbers increase, the fixed costs should be spread across more customers and hence the fee ought to reduce (for all). It smells like PP are doing what other companies do, prioritising/rewarding new customer acquisitions over existing loyal customers.

Presumably the intention is to convince people to sign up for ‘fixed-term’ contracts, thus guaranteeing Pure Planet an income stream? 
Or do these reduced Members Fees also apply for people signing to new variable contracts?

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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.

Its certainly a grind now that simplicity has left the arena. Keeps me a little occupied with spread sheets, so thats a plus.  Lets face it, the regulars who post are not simplistic when it comes to crunching the numbers and there are some nice pluses. Little tricks maybe...enticements, its a business at the end of the day. When I got my 2nd renewal prompt I thought I was the special one - deluded for a few seconds was nice.

Yep these variations in members rates go against the grain. New member, existing member, loyal member, returning member. Member remember. Then again thinking out loud, with no data as in increase in members more than covering fix costs etc - maybe benefiting tariff wizardry.  

Puzzling approach!

@25 quid @Strutt G @Gwyndy 

As you know I try to keep my legacy spreadsheet up to date with tariff details. What I don’t do (life is too short) is to check quotes from the comparison websites. I do know that where “offers” have come to light the unit prices as far as I know aren’t a variable but the membership rate has been varied as a “special”. (and this has been previously commented upon with similar concerns).

Also: The fee is currently higher for those on the variable rate tariff (an extra £31.92 over a year) I have to conclude that this is either because of the potential churn factor (uncertainty that consumers will complete a full year) or to “encourage” customers to go fixed. Either way I think the more transparent and fairer approach would be to charge the same rate for both fixed and variable. I don’t believe it costs more month to month to service a variable customer cf a fixed one.

Putting all of the above to one side for the moment where did the £6.10 originate? 

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@25 quid

 

Putting all of the above to one side for the moment where did the £6.10 originate? 

Yea I was wondering that and failed to ask so I did not appear as ignorant as I no longer check stuff so intently. 

Putting all of the above to one side for the moment where did the £6.10 originate? 

Beats me, some PP/meerkat marketing guru. Follow the link (in the question).

Anyway, (watt-)bottom line. It all seems too smoke and mirrors to me!

 

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🤣🤣🤣🤣🤣🤣🤣🤣🤣”wattbottom Line” such banky fun! 

Love a bit of meerkat 💕💕💕💕

Gales fierce fierce fierce 😳💨💨💨💨💨💨💨💨💨💨💨💨💨💨💨

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@25 quid

Thanks, I missed that it was a link! idiot (me)

What’s even more interesting is the unit prices which are higher than the April 23 fix- (that’s sneaky)

I’m just off to update and analyse I’ll report back later with some percentages.

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Intent @25 quid

Keep on….

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Becoming a real interesting, intriguing thread 👍👍👍👏👏👏👏

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Inspectoring the Clouseau

 

 

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@25 quid @Strutt G  and all...OK analysis done

Based on Ofgem medium dual fuel 2900kWh (killer womble harpies) of electricity and 12000 kWh (kinky wavy haircuts) of gas if the membership fee was left at £7 as it is in the April 23rd fixed tariff the CtM special would be ¾ of a percent more expensive than the  (21Jan) variable tariff  but reducing the membership fee to £6.10 then makes it 1.4% cheaper than than the variable.

If you use the Ofgem high values of 4300 (knobbly wide heads of electricity) and 17000 (keyless white households of gas) the CtM is about 0.77 % cheaper overall than the variable.

Just to say this is based on an average of all regions added together. Individual figures are available but there isn’t a huge variation.

 

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You got the “like” purely for the hilarious acronyms our Wozeeta 🤣🤣🤣🤣🤣🤣🤣👍👍👍👍👍👍

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@Bev glad you appreciated the in-depth analysis! LOL

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Always our Wozeeta, always 👍🤣👍😉

Thanks @woz. It is tiresome that PP is making it so hard to get their best deal. I know they’ll say they’re pushed to do it, and the bean-counters probably encourage it, but it’s frustrating nevertheless. 😕

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I still soooooooooooo love PP but I do long for that lovely open simplistic one size fits all approach we had two three years back 👍👍👍👍

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@25 quid @Strutt G  and all...OK analysis done

Based on Ofgem medium dual fuel 2900kWh (killer womble harpies) of electricity and 12000 kWh (kinky wavy haircuts) of gas if the membership fee was left at £7 as it is in the April 23rd fixed tariff the CtM special would be ¾ of a percent more expensive than the  (21Jan) variable tariff  but reducing the membership fee to £6.10 then makes it 1.4% cheaper than than the variable.

If you use the Ofgem high values of 4300 (knobbly wide heads of electricity) and 17000 (keyless white households of gas) the CtM is about 0.77 % cheaper overall than the variable.

Just to say this is based on an average of all regions added together. Individual figures are available but there isn’t a huge variation.

 

De puzzleated with a wry smile by the Wozerator

 

 

So I need to do maths to find out if the meerkats are right for me. Darn it.

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