The Co-operative Energy, the co-operatively owned energy supplier, has announced it will be dropping its electricity prices by 2% just as other suppliers are raising their prices – British Gas increased theirs by 6% on the same day. Consumer-owned Co-operative Energy has shown it can buck the trend and put customers before profit.
This price drop will make Co-operative Energy, which was the only supplier to freeze prices this winter, £88 cheaper than the average Big 6 standard tariff for online direct debit and £178 cheaper for offline quarterly credit. Following the British Gas price increases, Scottish, npower and EDF will all be raising their prices between 7% and 10.8% and SSE already raised theirs by 9%. Meanwhile wholesale electricity prices have dropped but the ‘Big Six’ refuse to pass this on to customers.
Co-operative Energy’s Nigel Mason said: “Our customers’ interests come first. Unlike our competitors we are not driven by a need to make profits for external stakeholders and we pledge to offer a fair and transparent price for all our customers. Wholesale electricity costs have come down and we were keen to ensure this was reflected in customers’ bills as soon as possible.
“Trust is at the heart of the co-operative. At a time when the image of the energy market is being further tarnished with allegations of manipulation of wholesale gas prices, Big 6 price increases and reports from Ofgem that suppliers’ profit margins are increasing, we need to show that we’re doing all we can to put customers first, build trust and restore faith, which is why we’ve passed on savings and are distributing £105,000 to our customers this month as a half yearly share of profit.”
Which? executive director, Richard Lloyd, said: “Rising energy prices are one of consumers’ top concerns, so this is welcome news from The Co-operative Energy at a time when millions of household budgets are squeezed. Customers being hit hard by big suppliers’ price rises should now ask why it is that The Co-operative Energy can buck the trend.”