App-based challenger supplier Pure Planet has been granted more temporary directions for alternative price cap assessment compliance.
Pure Planet was previously granted a temporary direction in January this year on the basis that the company’s non-standard charging structure means that applying the price cap would “not have been in the best interest of most of its consumers”, according to Ofgem.
The structure of Pure Planet’s single tariff is such that the charges for supply activities for some customers with low consumption levels would exceed the relevant maximum charge allowed under the cap.
The direction means that while Pure Planet is not exempt from the price cap it can, in circumstances where customers have very low energy consumption levels, charge above the cap level. Any charges above the cap must be credited back to customers.
The new directions are effective from 1 January 2020 until 30 September 2020, unless revoked earlier or varied in writing by Ofgem.
In August the regulator announced that three green energy suppliers Good Energy, Ecotricity and Green Energy UK were each granted a permanent derogation from the price cap for SVTs where consumers have chosen a tariff that contributes to renewable generation.