Co-operative Energy plans to offer 30,000 customers lower bills as part of a scheme to get them to change supplier. The deal should offer an average saving of £123 a year.
The so-called Big Switch scheme was launched by price comparison site Which? and online campaigners 38 degrees in February.
They gathered more than 285,000 consumers who were interested in switching and in a “reverse auction” asked five energy suppliers to offer these people the best deal.
The auction took place on Wednesday, with the Co-op winning the right to offer the cheaper tariffs – but because of its small size it is setting a cap on the number of new customers it takes on.
The remaining 255,000 customers signed up to the Big Switch will have the option of going for the next best deal, EDF Energy’s Blue +Price Promise.
Over the next few days, everyone who has signed up to the Big Switch and provided their tariff information will be sent a personalised savings quote showing them how much they could save by switching.
Richard Lloyd, Which? executive director said today: “The fact that one of the smaller suppliers, Co-operative Energy, was able to win shows that collective switching can help shake up the market for consumers and marks an important step on the road to energy market reform.
“The Big Switch has moved the energy market and secured a better deal for thousands of people, reaching people who have never switched before.”