Member Article

Co-op Energy Cuts Rates

Co-operative Energy has acted to take on the Big Six providers with an announcement to cut its electricity prices on the very day the majority of Brits see their energy bills rise.

British Gas price rises came into effect today with tariffs going up by 6% for both gas and electricity, affecting close to 10 million households. In contrast, Co-op Energy has revealed that its electricity charges will fall by 2% from 21 December 2012.

“Unlike our competitors we are not driven by a need to make profits for external stakeholders,” explains Co-op Energy’s Nigel Mason. “Wholesale electricity costs have come down and we were keen to ensure this was reflected in customers’ bills as soon as possible.”

The move means that the average energy bill from Co-op now comes in at £1,157, compared to £1,318 from British Gas.

“Co-op Energy’s price cut is great news for consumers,” says Will Becker, chief executive at TotallyMoney.com. “As the government investigates gas price-fixing, it’s good to see one firm putting its customer’s needs ahead of profits.”

However, this price cut doesn’t necessarily mean we should all jump ship to Co-op. While the sentiment is excellent the firm doesn’t offer the best deals for everyone.

Unlike most other energy providers, Co-op treats all its customers the same, regardless of whether they pay by prepayment meter, cash and cheque or direct debit. This means, that it is now offering the best deal for people who use prepayment meters and standard tariff customers who pay upon receipt of a bill. But, if you pay by direct debit there are better deals out there.

“This move by Co-op underlines the need for consumers to regularly shop around for the best energy deal,” adds Becker. “Prices are changing regularly so consumers should re-evaluate their deal at least once a year.”

This was posted in Bdaily's Members' News section by Toycel03 .