Small provider Green Star energy has just launched a new unlimited tariff, promising customers that they really can “use as much gas and electricity as they like”.
Two years ago, E.On got rid of a similarly unlimited energy tariff that they had been offering due to it proving unprofitable. Now it is Green Star’s turn to take up the mantle, but their unlimited tariff does come with some qualifications to try and prevent abuse.
Average Consumption
In order to be eligible for Green Star’s new plan, you must be able to demonstrate that your previous annual usage is between 2,200 and 4,200 kWh for electricity, and between 10,500 and 16,500 kWh for gas. This is more or less in line with Ofgem’s defined ‘average consumption’ of 3,100kWh for electricity and 12,500 kWh for gas.
What this does do is rule out those with particularly high consumption such as the elderly who, as a demographic, tend to use more energy for heating than the average consumer, often for medical reasons.
How much does it cost?
When you apply for the new unlimited tariff, you’ll need to send off your last years’ usage using meter readings from your last bill(s) in order for a fixed price plan to be calculated according to both your previous usage and, as usual, where you actually live.
Typically, prices will be around 14% more that Green Star’s fixed tariff rate, with prices starting at around £86 per month.
While Green Star have announced that they intend for this plan to be available in over 95% of postcodes in the UK soon, they have warned that those who do sign up will have to keep their consumption at a reasonable level. Those who exceed what Green Star count as “fair use” may find themselves bumped down to a standard tariff, the energy supplier have warned.
Certainty and Felxibility
Joanne Thornton, Green Star’s boss, has described the plan as a fixed rate tariff that really works, claiming that although a lot of existing fixed rate tariffs “can offer price certainty, they lack protection against a cold winter that can leave customers with surprisingly high bills.”
While Thornton admits that their new tariff “won’t be for everyone”, she maintains that “it offers customers an option to fix their home energy bill regardless of harsh weather conditions that typically drive up usage, and lead to a subsequent price shock.”
