Co-op Energy now more expensive than the big six

Pioneering new supplier, Co-op Energy, is putting its prices up for new customers. The price hike, 8.7% or £101 for gas and electricity, will take its average dual fuel bill up to £1,258 a year.

The move will see it fall to the bottom of the energy best buy tables and behind Britain's big six suppliers, says uSwitch.com, the independent price comparison and switching service. However, existing customers will not be affected.
 
At the same time, ScottishPower has come back to the competitive market with a bang. It has launched a new online plan called Online Energy Saver 21, costing £1,164 a year and making it the third cheapest supplier on the market behind SSE and First Utility.
 
Tom Lyon, energy expert at uSwitch.com, says: "Co-op Energy has become a familiar and welcome sight in the best buy tables. Today's move will be a blow as it has been offering consumers a great alternative to the traditional big six, while still being a brand that consumers know and trust. However, true to its word, this price hike will not affect existing customers, but it will hamper its ability to attract new customers any time soon. Hopefully this will just be a short-term blip as it is good for consumers and for the market to see a wide-range of suppliers competing hard.
 
"It's interesting too that as the Co-op takes a bow, big six rival ScottishPower has come storming back onto the stage. Its new tariff makes it the third cheapest supplier on the market and sees the big six flexing their muscles just a month after small suppliers seemed to have the competitive end of the market in a stranglehold.
 
"And this is why smaller suppliers and new entrants are so important - not only do they mean that consumers have a better choice of tariffs from a broader range of suppliers, but they also force the big six to slug it out on the competitive field. With the average household energy bill now hitting £1,352 a year and winter fuel bills on their way, I would urge consumers to take advantage and reduce their bills by shopping around for a better deal today."