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Ofgem's price cap is rising: How we deliver value for Members

Thursday, 5 August 20215 minute read
Energy Industry
Wholesale

The energy price cap is on the rise again. In this blog, Phil explains why the cap’s increasing, and how we offer value to our customers besides price.

The tip of a wind turbine at sunrise appearing through the mist

Photo by Sander Weeteling on Unsplash

Tomorrow, Ofgem will announce the latest energy price cap for the period 1 October 2021 to 31 March 2022. The price cap affects up to 15 million households across the UK who have a default tariff (often known as a standard variable tariff).

In this blog we’ll outline how the price cap is expected to change and why, what this means for consumers as well as what Pure Planet offers its Members besides price.

At a glance

  • Ofgem estimates its energy price cap will increase by approximately £150 – the change will apply from 1 October 2021
  • This is a very regular levelling of (most) supplier prices – you can read more about what the energy price cap is and why we have one in this blog – but the energy price market is anything but level this year
  • With pricing consistent across most of the market, consumers can look for better value and better values from their supplier – including getting 100% carbon offset gas as standard, as well as 100% renewable electricity. With Pure Planet’s 100% Green fixed tariffs you can lock in your unit rate and Membership fee for up to two years
  • We’ve updated our award-winning app to make it easier than ever to stay in control of your energy usage. Pure Planet Members can track and check their payments, and see their home energy usage in kWh, pounds and pence all year round
  • We’re committed to supporting all our Members, whatever their circumstances. If you’re worried about paying your energy bill we urge you to get in touch with us – you’ll find more information on the support available later on in this blog.

Why is the energy price cap increasing?

Ofgem reviews energy costs over the previous six months, benchmarking wholesale electricity and gas prices as well as transmission and other overheads, to work out the limit that energy suppliers can charge their customers.

A graph showing UK wholesale gas and electricity prices for 2021

The wholesale price of gas is rising at an unprecedented rate across the globe, to levels not seen for 16 years. The spring and summer months normally bring lower prices, with more of us outdoors and the heating taking a well earned break, but a long European winter has deferred that lowering consumption, just as global demand grew post-pandemic and supply was limited by gas producers and other generators shutting down for summer maintenance.

This has sent energy prices skyward, with many tariffs nearing the existing cap already. As a result of this significant increase Ofgem is announcing a large increase to its energy price cap, expected to be approximately £150. This is expected to trigger a wave of rises – the Big 6 all normally keep within a pound or so of the cap as their default.

What does Pure Planet offer its Members beyond the cap?

We closely monitor the market to ensure we pass on the best possible prices to our Members, and our prices remain competitive. But we offer far more value besides price alone.

Our mission is to create a Britain powered entirely by clean, renewable energy. Here’s how we’re supporting our Members on their journey to net zero:

Smart technology

We’re building smart technology to bring our Members’ energy usage to life, and to make living sustainably simpler.

Through our award-winning app, Members can get closer than ever to how they’re using energy in the home and on the go, and how much carbon they’re saving as a Pure Planet Member. And in the coming months we’ll be expanding the app’s functionality further, enabling Members to take simple steps towards a cheaper, greener life.

Sustainable energy

Our energy is 100% Green. That means all our electricity is 100% renewable, from the sun, wind and water, and all our gas is 100% carbon offset at no additional cost.

We’re committed to building a sustainable future for our planet. That’s why we launched Pure Planet Futures in the summer of 2020, to test out new technology that can help make that a reality.

Read more: How Pure Planet Futures helps Members reach net zero

Service

Our service is 100% digital. That means help is available 24 hours a day, 7 days a week through our app, our chatbot WattBot and our team. We’re also proud of our amazing Community of more than 50,000 Members, who are more than happy to help answer any questions too.

Read more: Pure Planet Community reaches 50,000 Members

Want to switch to Pure Planet? You can get a quote in just 30 seconds.

What should I do if I’m struggling to pay my energy bill?

If you’re struggling to pay your energy bills please get in touch with us – our team is here to help.

You can also get debt advice and other tips from these organisations:

Citizens Advice

www.citizensadvice.org.uk England: 0800 144 8848 Scotland: 0800 028 1456 Wales: 0800 702 2020 (Monday to Friday 9am to 5pm)

Stepchange Debt Charity

www.stepchange.org 0800 138 1111 (Monday to Friday 8am to 8pm, Saturday 8am to 4pm)

National Debtline

www.nationaldebtline.org 0808 808 4000 (Monday to Friday 9am to 8pm, Saturday 9.30am to 1pm)

You can also find help and advice at: Ofgem, the energy regulator www.ofgem.gov.uk Energy Saving Trust www.energysavingtrust.org.uk Centre for sustainable energy www.cse.org.uk/advice Energy Helpline www.energyhelpline.com

Phil
Commercial Director