• Zero Mark Up vs, Sustainability?

    Two features about Pure Planet prompted me to join.

    The first is their commitment to transparent pricing, by selling energy at cost using a single tariff and deriving the income required to run the company through a monthly membership fee.

    The second is their commitment to sustainability. This goes well beyond the fact that they only offer a 100% renewable tariff and is very much part of the company culture.

    Both features taken individually are highly laudable, but are they compatible?

    If energy units are sold at cost and all users pay the same monthly fee, then the tariff becomes increasingly attractive the more energy is consumed. This works well in my case as my annual electricity consumption is more than 50% higher than the standard amount of 3,100 units that is typically quoted.

    However, given that the company is driven by sustainability, this surely means that they would prefer to make their money by selling small amounts of electricity to a large number of customers?

    It would appear that their business model (zero mark up) and their company values (sustainability) are pointing in opposite directions, when they should be aligned.

    Is this a problem for Pure Planet's future success?
    1
  • Two features about Pure Planet prompted me to join.

    The first is their commitment to transparent pricing, by selling energy at cost using a single tariff and deriving the income required to run the company through a monthly membership fee.

    The second is their commitment to sustainability. This goes well beyond the fact that they only offer a 100% renewable tariff and is very much part of the company culture.

    Both features taken individually are highly laudable, but are they compatible?

    If energy units are sold at cost and all users pay the same monthly fee, then the tariff becomes increasingly attractive the more energy is consumed. This works well in my case as my annual electricity consumption is more than 50% higher than the standard amount of 3,100 units that is typically quoted.

    However, given that the company is driven by sustainability, this surely means that they would prefer to make their money by selling small amounts of electricity to a large number of customers?

    It would appear that their business model (zero mark up) and their company values (sustainability) are pointing in opposite directions, when they should be aligned.

    Is this a problem for Pure Planet's future success?
  • Further to @Lenny, I agree that as a below average user for both electric and gas, I feel that as I cut back my usage my membership fee becomes a larger percentage part of my charges. From a financial point of view there will come a point where a higher unit cost but lower fixed charges will become more viable which could out way any ethical reasons.

    Just my thoughts.
    1
  • Further to @Lenny, I agree that as a below average user for both electric and gas, I feel that as I cut back my usage my membership fee becomes a larger percentage part of my charges. From a financial point of view there will come a point where a higher unit cost but lower fixed charges will become more viable which could out way any ethical reasons.

    Just my thoughts.
  • eco issues aside, I agree, the lower your consumption the less competitive PP will be.
    PP is not a good economic choice very low users. In fact they discourage very low users by having a low use stop on the quote system.
    The business model is also dependent on scale, and as PP grow they should hopefully be able to reduce the membership fee.

    The comparison websites fail to reflect a true comparison when the user is unaware of their true consumption, I've always thought this was an issue.
    2
  • eco issues aside, I agree, the lower your consumption the less competitive PP will be.
    PP is not a good economic choice very low users. In fact they discourage very low users by having a low use stop on the quote system.
    The business model is also dependent on scale, and as PP grow they should hopefully be able to reduce the membership fee.

    The comparison websites fail to reflect a true comparison when the user is unaware of their true consumption, I've always thought this was an issue.
  • Thanks for posting this @Lenny and kicking off a good discussion.

    I just wanted to jump in here to make one point.

    We have zero mark-up on energy our members use. This sets us apart from other suppliers in that they make more money the more energy you use.

    Our view is: Use as little energy as you can.

    Personally..... my view is - can other suppliers have an honest conversation with you?
    When I was with one of the Big 6 I got a lot of letters from them advising me to insulate my loft, but were also making more profit if I used more energy through them!

    Our membership concept (as well as the community of course!) and our app are the ways in we believe people should engage with energy now and in the future, to help them use less. Of course we want to do more around that in the future, with smart and 'real time' info.
    Community Manager - Pure Planet

    2
  • Thanks for posting this @Lenny and kicking off a good discussion.

    I just wanted to jump in here to make one point.

    We have zero mark-up on energy our members use. This sets us apart from other suppliers in that they make more money the more energy you use.

    Our view is: Use as little energy as you can.

    Personally..... my view is - can other suppliers have an honest conversation with you?
    When I was with one of the Big 6 I got a lot of letters from them advising me to insulate my loft, but were also making more profit if I used more energy through them!

    Our membership concept (as well as the community of course!) and our app are the ways in we believe people should engage with energy now and in the future, to help them use less. Of course we want to do more around that in the future, with smart and 'real time' info.
    Community Manager - Pure Planet

  • I don't know very much about the energy market but I have a friend who does: he says that prices vary throughout the day. I also have a relative who worked for National Grid balancing supply and demand. What I don't understand is how PP can commit to supplying energy at cost unless they are buying at a fixed cost... perhaps someone would be kind enough to explain.

    Quote Originally Posted by Marc View Post
    I just wanted to jump in here to make one point.

    We have zero mark-up on energy our members use. This sets us apart from other suppliers in that they make more money the more energy you use.

    Our view is: Use as little energy as you can.

    Personally..... my view is - can other suppliers have an honest conversation with you?
    When I was with one of the Big 6 I got a lot of letters from them advising me to insulate my loft, but were also making more profit if I used more energy through them!
    0
  • I don't know very much about the energy market but I have a friend who does: he says that prices vary throughout the day. I also have a relative who worked for National Grid balancing supply and demand. What I don't understand is how PP can commit to supplying energy at cost unless they are buying at a fixed cost... perhaps someone would be kind enough to explain.

    Quote Originally Posted by Marc View Post
    I just wanted to jump in here to make one point.

    We have zero mark-up on energy our members use. This sets us apart from other suppliers in that they make more money the more energy you use.

    Our view is: Use as little energy as you can.

    Personally..... my view is - can other suppliers have an honest conversation with you?
    When I was with one of the Big 6 I got a lot of letters from them advising me to insulate my loft, but were also making more profit if I used more energy through them!
  • Hi Timpin,
    Have a look at the following link, it may answer some of your questions
    https://community.purepla.net/thread...uy-your-energy
    3
  • Hi Timpin,
    Have a look at the following link, it may answer some of your questions
    https://community.purepla.net/thread...uy-your-energy
  • Nice one @Duppy I was just about the share that very same link!

    Hope it helps @timpin
    Community Manager - Pure Planet

    1
  • Nice one @Duppy I was just about the share that very same link!

    Hope it helps @timpin
    Community Manager - Pure Planet