Pure Planet has announced a price increase due to the rise in wholesale costs as countries around the world emerge from the first phase of the coronavirus lockdown.
Co-founder Chris Alliot said that in addition to the rise in wholesale prices, non-commodity costs, which make up a large part of energy bills, have also been going up.
In response, the app-based retailer is raising electricity prices on its variable tariff from 4 November for existing customers and for new Pure Planet customers from today (7 October).
Customers will see a yearly increase of £34 (3.8 per cent) on an average dual fuel variable bill, up from £902 to £936.
The move marks the first time the supplier has increased its costs in 18 months.
Alliot explained: “Over the past six months, as the pandemic has unfolded, electricity and gas prices have fluctuated. They fell sharply as lockdown took hold but have recently tended to climb upwards.
“This uplift in prices can be attributed to different global factors. The recent easing of lockdown measures across the world has played a part in pushing up prices. And the efforts of some Asian countries, in particular, to kickstart their economies by ramping up industrial production have led to a rise in wholesale gas prices.
“Here in Britain, the wholesale price for electricity has climbed steeply since the worst points of lockdown in April, and is up around 25 per cent since then. Gas is up over 15 per cent during the same period, albeit from a lower point.”
Elsewhere in the sector, Bulb has also announced a price increase, with company co-founder Amit Gudka outlining how it too was changing its electricity prices.
“Overall, a typical member using both electricity and gas will see their bill increase by £51 per year. After the changes, we’ll still be £76 below the price cap”, he said.
Gudka added that gas rates were being lowered, meaning a typical home would see a decrease of £2 to their monthly bill.
The changes to gas prices were brought in for customers on 1 October, while electricity rates will change on 18 October.