Co-operative Energy is to cut its energy prices by around 3%.
It plans to drop gas and electricity prices from 1 February 2012 and says this will save the average household around £35 a year.
Energy price cut
Co-operative Energy is Britain’s newest energy company and launched in May 2011. It has no shareholders, offers one tariff and customers are not tied into long contracts.
The price cut applies to almost all of Co-operative Energy’s 16,000 customers, apart from those who joined during the company’s probationary period and are already on a cheaper tariff.
Cheaper gas and electricity
Which? energy policy advisor James Tallack said: ‘Smaller suppliers like Co-operative don’t buy so much energy as far in advance as the big suppliers, who are currently supplying energy they bought around a year and a half ago. This means they may be more responsive to short-term changes in wholesale prices.
‘This price cut is a welcome move by Co-operative, and we hope that Ofgem’s current ‘forensic investigation’ into the pricing practices of bigger suppliers will bring greater clarity on whether the prices we’re being charged are a fair reflection of the price our suppliers are paying.’
Warm weather cuts prices
Co-operative Energy spokesperson Nigel Mason said: ‘This autumn’s exceptionally mild weather has led to a drop in wholesale prices so we’re passing on those savings as soon as we possibly can.’
The company claims the price cut will make Co-operative Energy cheaper than standard tariffs from British Gas, Eon, EDF, Npower, Scottish and Southern and Scottish Power, which have all increased prices this year.
Make energy simple
In June Co-operative Energy was awarded the Which? Consumer Action award for meeting key asks around transparency, clearer bills and offering a single tariff.