Leap of faith as Co-op Energy trims price rise by 2.5%

A 4.5% price increase announced in November will be trimmed down to 2.5%, Co-operative Energy has announced. According to the company the decision is part of its pledge to “provide […]

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A 4.5% price increase announced in November will be trimmed down to 2.5%, Co-operative Energy has announced.

According to the company the decision is part of its pledge to “provide customers with a fair and transparent deal” and was made in response to the Government’s indication it would remove Energy Companies Obligation (ECO) taxes from bills.

Ramsay Dunning, Group General Manager at Co-operative Energy said: “Given the expectation that an announcement is imminent that the burden of green and social taxes will be removed by the Government we have decided to take a leap of faith and remove this element, which represents 2%, from our previously announced average 4.5% price increase.”

He added: “If ultimately we have misread the signals and social taxes remain in place for next year we will have no alternative but to review this decision but at least our customers will have benefited over the difficult winter months.”

Earlier this week EDF became the fifth of the Big Six suppliers to announce a winter price hike, undercutting the other four to announce, with a 3.9% increase. Like Co-operative Energy, EDF has said it may have to increase prices again depending on the fate of ECO.