BP declares price war against Big Six energy providers with strategic investment in 100% renewable supplier

Oil giant BP has taken a substantial shareholding in – and is supplying 100% renewable energy to – a new energy provider which has launched a price war on the Big Six.

Bristol-based Pure Planet – a 100% renewable energy supplier for the British market – promised to ‘revolutionise the sector’.

The new supplier aims to compete with the biggest companies in Britain’s retail energy market with prices that are substantially lower than the Big Six, thanks to a new membership model – Pure Planet passes through all energy to consumers at cost, with no markup.

Pure Planet is a digital-only brand, built for the mobile and app world and uses an artificial intelligence bot to help provide customer service.

Pure Planet has been founded by Andrew Ralston, Steven Day, Chris Alliott and Tom Alexander – the team credited with ‘democratising’ the mobile phone sector in the 2000s after launching Sir Richard Branson’s Virgin Mobile in the UK, by bringing down tariffs, simplifying service, and putting customers at the heart of the business.

BP has acquired a 23.7% stake in the new energy provider for an undisclosed price and will provide all of Pure Planet’s energy.

Andrew Ralston, Pure Planet’s co-founder and chief executive, said: “As the world’s largest energy broker, what BP bring is that access to the renewable energy market on behalf of Pure Planet customers and confidence that Pure Planet is backed by a very serious player.

“We make our profit through membership fee. The membership fee covers operating costs, the cost of getting energy to your home and margins. The key objective of passing commodity at wholesale price is that we are not profiteering by encouraging people to use more energy.

“The Pure Planet membership fee is £10 a month for 100% renewable electricity and £10 a month for 100% natural offset carbon gas. This is included in our savings calculations

“The electricity is sourced from wind, solar and hydro power only, while the gas is 100% carbon offset.

“There is only one tariff and no rip-off rates normally associated with standard variable tariffs of the Big Six. A nominal monthly membership fee, which includes the standing charge, covers the company’s margin.

“Pure Planet offers sustainable energy for ‘less than power that pollutes’, as well as 100% carbon-offset natural gas. To power and heat a typical three-bedroom home, Pure Planet’s costs are 20% less than the Big Six on average.”

 “Pure Planet is designed to give Britain’s 28 million consumers fresh, clean 100% renewable energy for a lower price than power that pollutes. We’re using modern digital technology – and our telecommunications experience – to bring better prices and better service to the UK energy market.

“From now on, there is no excuse not to choose renewable energy. It’s now cheaper, and much better value than the alternative. And it doesn’t pollute the environment, it’s better for us all and better for the planet.”

BP - one of the world's top brands
BP – one of the world’s top brands

BP is one of the top five most valuable British brands – moving up one place to Number 4 on the rankings published last month by the Brand Directory market intelligence firm.

Perth-based SSE – one of the Big Six –  is the only British or Scottish utility brand in the top 150 brands and is ranked at number 36.

Shell is ranked at number one with the most valuable brand.

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