Co-op energy has given its power customers a rare bit of good news by announcing a price cut of 2 per cent from 21 December.
Co-op's move comes as the big six suppliers are being investigated by regulators for potential price fixing following a series of eye-watering bill hikes.
The Co-op claims that its cut will shave £9 off the average customer's annual energy bill. However, relatively few will benefit as the Co-op only has a tiny share of the UK energy market.
"This move suggests that the Co-op is serious about putting ethics back into the energy market – by cutting its prices, even by as little as 2 per cent, it is sending out a clear message that not all suppliers are the same," Tony Lyon energy expert at comparison service uSwitch.com said.
But uSwitch found that the Co-op, even after the price cut, is not among the cheapest energy suppliers. This is partly due, it said, to the company's policy of charging prepayment customers the same rate as standard users.
All but one of the big six energy firms have recently raised prices adding on average £90 to annual bills for UK consumers. E.On is only one not to have announced a price increase and has pledged to keep bills on hold for the remainder of the year.
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