Energy supplier Co-operative Energy is putting up its gas and electricity prices by an average of 4.5%.

It’s an attempt to undercut much bigger rivals such as SSE and British Gas who recently announced price hikes double that of the Co-operative’s.

Announcing the new price today, an extra £4.78 per month for an average dual fuel customer, the customer-owned supplier said this won’t apply to existing customers until January 2014.

All new customers who sign up from 21 October will take on the price rise though.

The power provider said the increase represents half the actual cost increase it faces and claimed it will “absorb” half of these costs to hold current prices for customers for “as long as possible”.

Ramsay Dunning, the general manager of Co-operative Energy said: “To demonstrate our commitment to our customers we have decided to effectively go halves and absorb the remaining cost.”

Now an average duel fuel customer will pay £1,315 per year, which Co-operative Energy stated is £87 per year less than a British Gas duel fuel customer.

He blamed “increasing energy market costs beyond our control, namely the costs associated with buying energy and getting it into customers’ homes”.

Last winter the firm got one over most of the Big Six players with a shock price chop of 2% after five of them whacked up prices.