Co-op Energy cuts prices by 2% to buck industry trend
It will be cutting 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, but the Co-op has beaten this promise with a price freeze of its own until at least April 2013.
Tom Lyon, energy expert at uSwitch.com, said: “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.”
The Co-op’s price cut will shave £9 off its average bill, taking it down from £1,166 to £1,157 a year.
This price is the same regardless of whether you pay by cash and cheque, direct debit or are on a prepayment meter.
This means that the Co-op is cheaper than the big six suppliers for prepayment meter customers and for standard tariff customers who like to pay by cash and cheque.
However uSwitch says that because of this policy of treating all customers the same regardless of payment method, it is not as competitive for direct debit customers.
The supplier’s Pioneer plan comes 8th in the current energy Best Buy table.