PPC is keeping its cheap blue online tariff in play. It has reshuffled the market, and although its charges are rising, it remains by far the most attractive fixed-rate offer on the market.
At a time when electricity prices are breaking one record after another and all signs point to upward price pressures continuing, the company has announced that it will keep offering myHome Online, but at new rates.
Specifically, the price per kilowatt-hour is rising by 13% to 13 cents, from 11.5 cents, while the monthly standing charge is set at 5 euros, making the product the cheapest in its category.
Blue tariffs average 15 cents/ kWh, with a standing charge of 11-12 euros a month. Rates vary across a huge range depending on the supplier and consumption, from 10 cents for up to 100 kilowatt-hours to 21.9 cents for 151 kilowatt-hours and above. Standing charges start at 5 euros and reach as much as 16 euros a month, adding further to the bill.
The move to continue this promotional offer for a second consecutive month is expected to trigger a “response” from competitors and a new price war. Keeping this product on the market threatens to reshuffle the market and disrupt the current balance of market shares.
As for the number of consumers who have chosen it so far, both existing company customers who were on other tariffs and customers switching from competitors, the company has declined to provide figures. However, sources point to a strong flow of customers switching.
PPC has also set the tone for competition by making a measured 6.2% increase to its green tariffs, absorbing most of the wholesale price increase (+25%) and announcing a November rate of 16.9 cents/kWh, up from 15.9 cents/kWh in October (for consumption of up to 200 kWh). The discount in this category is 88.3%.
Some of the other major suppliers are expected to absorb part of October’s wholesale price increase. However much they absorb, significant increases are considered unavoidable.