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A price cut?! Co-Operative Energy bucks the trend

With most energy suppliers raising prices Co-Operative Energy introduces a price cut.

Co-operative energyIn an unexpected move the small supplier Co-Operative Energy has cut its electricity prices by 2% from 21st December, 2012.

The news comes as the big six suppliers move to hike their prices by 7% or £90 on average – taking the average household energy bill to an eye-watering £1,334 a year.

Only E.ON has pledged to freeze its prices until the end of the year, although there is speculation that they too may push up prices in early 2013.

In contrast, the Co-op’s price cut will shave 2% or £23 off its average bill, taking it down from £1,166 to £1,157 a year.

‘Not all suppliers are the same’

This means that Co-Operative Energy is cheaper than the big six suppliers for prepayment meter customers and for standard tariff customers who like to pay by cash and cheque.

Tom Lyon, energy expert at uSwitch, says: “This move suggests that the Co-op is serious about putting ethics back into the energy market – by cutting its prices, even by as little as 2%, it is sending out a clear message that not all suppliers are the same.

“By differentiating itself from the traditional suppliers the Co-op should be able to attract consumers that are fed up with the big six and want to try something new. A more ethical approach and good customer service go a long way to winning people over, but attractive prices will see the trickle of new customers turn into a flood.

“At the end of the day, Co-operative Energy is demonstrating why consumers deserve and need a strong competitive market – by voting with their feet consumers can force change and encourage best practice. And while its prices aren’t market-beating, they still offer a saving especially for those households that have never switched.”

Best buy plans

Supplier

Plan Name

Price

First Utility

iSave v12

£1,054

npower

Energy Online January 2014

£1,071

E.ON

E.ON Energy Discount (with online reward)

£1,113

EDF Energy

Standard (Variable) Dual Fuel

£1,129

Sainsbury's Energy

Online Variable Sept 2013

£1,137

Spark Energy

Standard

£1,138

OVO Energy

New Energy Fixed

£1,139

The Co-operative Energy

Pioneer

£1,157

British Gas

WebSaver 13

£1,166

ScottishPower

Help Beat Cancer Discounted Energy Online August 2015

£1,222

SSE

Fixed Discount December 2014 (with paperless billing)

£1,238

 

Average

£1,152

 
Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas, paying on receipt of bill with bill sizes averaged across all regions. *Bill sizes include all announced price hikes as at 13th November, 2012. 

Learn more

Cheapest gas and electricity – Who’s the cheapest supplier for you? It all depends on your specific details.

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