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

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.”