Explanation Letter

We fully understand the frustrations you are feeling under the current situation due to the steep increase in prices. Energy markets have hit record highs which have caused major problems across the energy industry. We trust the following provides some reasoning for the increases:

• CNG forward bought your gas usage when the wholesale market was considerably lower than today, this enabled you to be on the rate you were previously on. Unfortunately, when CNG went into administration these hedges / forward purchases ended. The knock-on effect of this is that Pozitive Energy inherited your supply at the current market rate which is significantly higher.
• After a rigorous tender process Pozitive Energy was appointed the “supplier of last resort” (SoLR) During this process deemed / out of contract prices were strictly agreed with Ofgem
• As Pozitive Energy was appointed the supplier of last resort no hedges could be put in place as you have no contract with us, therefore the current market rate is applicable. Unfortunately, the rate you were previously on to the rate you are on now is significantly more, however, we are forced to buy and supply you at these rates.

Pozitive Energy wants to work with you to ensure that any exposure to current high markets is kept to a minimum. We are in unprecedented times and the energy market is very unpredictable with wholesale energy costs fluctuating rapidly. We are however trying to keep this as affordable as possible for our customers.

• We have reached out to all CNG customers to offer preferred contract rates which we also offered to backdate
• Pozitive Energy has gone above and beyond our license conditions by honoring credit balances which is not a requirement for B2B supply.
• Due to us having no historical data for your meter, we have initially worked on the information provided to us by CNG but we do recognize, that in some instances, this is proving to be inaccurate. We want to assure you that we are working hard to resolve this. If you have any meter reads that would give us a more accurate picture it would be a great help. We want to bill you as accurately as possible
• We respect that some customers may not want to stay with Pozitive Energy and choose to move to an alternative supplier. They will therefore remain on our deemed rates, but the energy used will still need to be paid for. Rest assured if you do wish to move away from us to an alternative provider, we will make the transition as easy as possible