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Renewable energy supplier Pure Planet has announced its second price drop of the year due to a fall in wholesale gas prices.
Pure Planet has cut the price of gas by 6 per cent on average for a medium user meaning a typical dual fuel customer will see their annual bill fall from £986 to £962 a year.
The app-based supplier says it is now 23 per cent cheaper than Ofgem’s default price cap which is currently set at £1,254.
Electricity prices remain unchanged however, which means the overall price reduction for a dual fuel customer is 2.4 per cent.
The supplier cited a reduction in the wholesale price of gas, caused by an abnormally warm period between February and May, as the reason behind its price decrease.
Steven Day, co-founder of Pure Planet, said: “This price decrease will encourage more people to cut their bills and cut their carbon footprint by choosing fresh, clean renewable electricity and carbon offset gas.
“We believe 2019 will be the biggest year yet in the fight against climate change, and we want to help people cut their carbon.
“With affordable renewable energy from Pure Planet, a typical household can save £292 a year and save around three tonnes of carbon dioxide being pumped into the atmosphere.
“Now is the time to become an everyday activist by switching your home to clean energy which is good for your pocket and good for your planet.”
Igloo Energy recently announced a second price drop this year as wholesale gas prices “remain low”.
Bulb is another challenger supplier to have cut its customers’ bills.
All six of the largest energy suppliers announced price increases on their default tariffs to the new level of the cap, which came into effect on 1 April.
The cap will be updated again later this year by the industry regulator.
In March Pure Planet was granted temporary directions by Ofgem for “alternative compliance assessment for the default tariff price cap”.
This is 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.
This derogation will remain in effect until 31 December this year, unless otherwise revoked or amended by Ofgem.
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