Many Co-operative Energy customers are set to see their dual fuel bills rise by £100 a year, after the energy supplier revealed it is increasing prices for more than 100,000 people on its Pioneer tariff.
From Thursday May 9th, prices for Pioneer tariff customers will rise by 8.5% for gas and 9.0% for electricity, on average – increases that will equate to an extra £8.39 per month for dual fuel customers, or £100 a year.
It comes after the supplier last year reduced the cost of its electricity by 2%, despite major energy providers raising customers’ energy bills by an average of 8.5 per cent.
Co-operative Energy also froze its prices throughout the winter months to assure families that their bills would not escalate any further while they were most dependent on their heating, but said the latest increases are as a result of circumstances out of its control.
“The main reasons for having to increase our prices now are the escalating costs that we are charged to transport energy, which increased by 12% on April 1st, and the 5% rise in energy costs since our last price change in November 2012,” the company stated.
However, despite the increase, Co-operative Energy has noted that its gas and electricity prices still compare favourably to those of the Big Six and pledged to keep these costs competitive in the future.
“We pledged to offer consistently competitive pricing and even after this increase we will still be competitively priced against the big suppliers’ standard tariffs,” the company stated.
“We are not increasing prices to reward financial investors, but to ensure we continue to run a sustainable business for our members.”
In total, 106,000 customers on the Pioneer tariff will be affected, though those wanting to switch to a different tariff can do so without incurring any penalty, according to the terms of the contract.