Your cookie preferences


We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content

The tide turns again as small supplier Co-op raises energy prices

  • Co-operative Energy increases standard tariff by 2.3% for new cash customers and 2.4% for new direct debit customers

  • Hikes push prices to £1,239 a year for cash customers and £1,176 for those opting for direct debit

  • Shock move comes as small suppliers Ovo and First Utility slash their cheapest tariffs to less than £1,000 and SSE commits to freezing prices to 2016

  • Co-op’s standard tariff is now 18% more expensive than the cheapest plan on the market

  • 78% of energy customers would consider switching to a small supplier believing they will get a cheaper deal.

At a time when some small suppliers are doing all they can to lure customers away from the big six with table-topping deals, the Co-operative Energy has this week raised the prices of its standard tariff by up to 2.4%, according to the independent price comparison and switching service Uswitch.com. From yesterday, new Co-op customers on a standard plan will pay an average of £1,239 if paying by cash or cheque, and £1,176 if paying by direct debit.

The surprise move comes after Ovo and First Utility hinted the start of a long-awaited price war, both announcing tariffs below the £1,000 within days of each other. It also follows a promise by SSE to freeze bills until 2016.

Tom Lyon, energy expert at Uswitch.com, comments: “Just when we thought that small suppliers were coming to the rescue, Co-op has dealt this blow to consumers. This comes completely out of the blue at a time when some suppliers are doing all they can to make energy more affordable. After a winter of rationing heating and hot water to cope with rising bills, this could be a bitter pill to swallow for long-suffering consumers.

“It’s our hope that this news does not stop people from considering a move away from the big six to a smaller supplier – many of whom offer both good value and excellent customer service. It’s now vital that consumers are supported by an education programme to help them understand all the choices available to them on the market, to give them the confidence to shop around for the best deal.”

|

Big 6 Supplier standard plans (plus Co-op)

|

Supplier

|

Plan name

|

Standard Plan (paying in receipt of bill-POR)

|

EDF Energy

|

Standard (Variable)

|

£1,237

| |

Co-op

|

Pioneer

|

£1,239

| |

E.ON

|

E.ON Energy Plan

|

£1,240

| |

British Gas

|

Standard

|

£1,265

| |

SSE

|

Standard

|

£1,266

| |

ScottishPower

|

Standard

|

£1,284

| |

npower

|

Standard

|

£1,299

| | |

Average

|

£1,265

|

|

Big 6 Supplier standard plans (plus Co-op)

|

Supplier

|

Plan name

|

Standard Plan (paying by monthly direct debit)

|

EDF Energy

|

Standard (Variable)

|

£1,164

| |

E.ON

|

E.ON Energy Plan

|

£1,169

| |

Co-op

|

Pioneer

|

£1,176

| |

SSE

|

Standard

|

£1,186

| |

British Gas

|

Standard

|

£1,193

| |

ScottishPower

|

Standard

|

£1,199

| |

npower

|

Standard

|

£1,205

| | |

Average

|

£1,186

|

 Source: Uswitch.com

Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a dual fuel tariff, paying by monthly direct debit, with bill sizes averaged across all regions.

FOR MORE INFORMATION

Charlotte Nunes

Phone: 020 7148 4664

Email: charlotte.nunes@uswitch.com

Twitter: @uswitchPR

Notes to editors

  1. Co-op Pioneer tariff pricing (for new customers):

  2. Ovo launched its Cheaper Energy Fixed tariff (£998) on 9th April 2014 and First Utility announced its iSave Fixed July 2015 tariff (£994) on 16th April 2014. SSE announced it was freezing prices to 2016 on 26th March 2014.

  3. Co-op Pioneer tariff is £1,176 for direct debit customers; cheapest plan on market is First Utility’s iSave Fixed July 2015 costing £994 for direct debit customers only. This is an 18% difference.

  4. According to research conducted for Uswitch by YouGov 3rd – 6th February 2014 amongst 2,232 adults.

About us

It’s all about “U”!

Thank you for indulging us over the last 20 years by using a small ‘u’ and a big ‘S’ when writing about our brand in your articles.

We are delighted to let you know that you are now off the hook - it’s big U’s all the way (and small s’s) as we undertake our biggest ever rebrand - so let your autocorrect go wild!

About Uswitch

Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.

Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.

If you would no longer like to receive our press releases please email prteam@uswitch.com with 'unsubscribe'.