Pure Planet has announced it is the first energy company to cut its prices this year.
The app-based renewable energy supplier says it has made “several efficiencies in its digital operations” which it is passing on to its members.
The challenger brand, which started trading fully in September last year, is from today cutting its membership fee from £10 a month per fuel to £8.50, with savings applying to both new and current members from 1 May.
Under the price change, a Pure Planet dual-fuel member will save £36 a year, making a typical householder’s annual dual fuel bill fall from £908 to £872.
Because the saving is applied to the membership fee, all members regardless of energy use will benefit. The company says this adds up to average annual savings of 4 per cent.
Steven Day, co-founder of Pure Planet said that the company was now gaining market share and improving its operations behind the scenes.
He told Utility Week: “Being a smart, digital business is at the heart of Pure Planet’s ethos. The benefit of this is that we use tech to make the kind of efficiencies which result in savings and, ultimately, a better deal for our members.”
The company, he added, also has “one fair tariff” and no “squeeze and tease rates” meaning all its members benefit from consistent value, and it can keep costs low.
This is the second price change to Pure Planet’s 100 per cent green tariff this year.
In March, although the membership fee remained the same, the company announced an increase to its members’ rate (the kWh unit rate) due to rising wholesale costs. This part of the tariff, it said, is based on wholesale market prices and has zero mark-up. The tariff rose overall by on average 5.6 per cent.
The news of Pure Planet’s fee drop follows price tariff hikes by some of the Big Six suppliers during April. British Gas’ Standard Variable Tariff rose by 5.5 per cent, with EDF increasing its default tariff by 1.4 per cent and Scottish Power by 5.5 per cent.
Last month Pure Planet also claimed to be the first energy company to offer equal parental rights for employees.