The higher-than expected costs of wholesale energy means we’re announcing an increase to our Members’ rates for gas and electricity.
Energy costs have climbed steeply through 2018 and, although prices have fallen back in the past few weeks, wholesale costs are up 25% since January.
We’ve managed to hold off applying the increase for existing Members until early next year — 15 January 2019. We’re letting our existing Members know a month and half in advance to give plenty of notice. We’re going to leave Members’ Direct Debit payment schedules as they are; we monitor payments and usage regularly, and let our Members’ know if we need to adjust them.
People joining Pure Planet from today — 27 November 2018 — will be quoted at the new rate.
For a typical dual fuel household* the price will rise by 8.4% from £921 to £998 a year. This is an additional £77 per year — or £1.48 a week.
We’re not the only supplier having to increase prices. We’ve seen regular and frequent price rises from British energy suppliers this year as wholesale prices climbed. At one point the wholesale futures market (for energy being bought for the first quarter of 2019) was 50% up on January’s rates. This was extremely unusual, but the overall trend in the wholesale market has been up. And up a lot — pushing retail prices up in turn. Even Ofgem, the energy regulator, has predicted that underlying price trends will continue to rise ahead of its new price cap review in February.
So where does that leave Pure Planet?
Still near the top of the Best Buy tables, we’re one of the few suppliers to cost less than £1,000 a year and we continue to have one the best value tariffs in the market.
Crucially, we’re one of the best value green energy companies in Britain, and thanks to our digital business model, we intend to remain so. We believe it should be better value to choose fresh, clean renewable electricity rather than ‘brown’ power — so why would you not choose green?
You can see how we compare to other energy suppliers here.
Remember, our Members’ rate is based on wholesale energy costs. There’s zero markup on the energy you use — you pay no more than we pay.
In a market which has recently seen several suppliers go bust, it’s also worth knowing that Pure Planet has the backing of BP (it’s a minority shareholder in Pure Planet) and we buy our renewable power through BP’s renewable energy team, one of the biggest in the Europe.
What this means for you
If you’re currently a Pure Planet Member, your tariff won’t go up until 15 January 2019. Although we’ve illustrated this article with the average price rise for a dual fuel medium user, your individual price increase will vary according to how much you use and where you are in the country.
Here’s the breakdown for each region. It differs slightly because the costs of transporting your energy vary depending on where you live. Transport costs are regulated by Ofgem, are the same for all suppliers, and beyond our control.
New joiners signing up to Pure Planet from today — 27 November 2018 — will be quoted and join at the new rates.
Our single tariff is variable, which means our prices can go down as well as up. Having just one variable tariff means that all our Members are always on our best rate.
If you’re unhappy with the change in our Members’ rates, you’re free to switch at any time — we don’t charge exit fees. And if you do, we really hope you’ll stick with renewables, which are no longer an expensive luxury and best for our environment and long-term sustainability.
How we announced the price rise
- We warned we may have to increase our prices in our Price Watch blog in November.
- We included a message on our website and price comparison sites that reads “Prices in the wholesale market remain higher than expected. It’s likely that we’ll need to increase our Members’ rate in the near future” to inform any new Members of a possible price rise.
- We announced the increase on this blog and our social media channels on 27 November.
- We’re sending a personalised email to all our Members in the next few days.
It’s important to us that we’re transparent. Join the conversation, and let us know how we did communicating this price change in our Community.
A typical dual fuel household uses 12,000 kWh of gas and 3,100 kWh of electricity per year. We’ve illustrated the price rise with an average national figure, price increases will vary according to region and usage.