Co-op Energy is to increase its electricity prices for all customers who are on one of its variable tariffs.
The price rise, which will take effect from 27th May 2014, means those customers on the Pioneer Variable 5.1 tariff – which will be replaced by Pioneer Variable 5.2 – will see their electricity bills increase by £2.21 per month.
There will however be no increase on gas charges.
Co-op Energy blames “industry regulated costs” including the Energy Company Obligation (ECO), Feed-in Tariffs as well as increases in distribution and transmission costs for the price rise.
The news comes after other smaller suppliers Ovo and First Utility both announced tariffs below £1,000.
Ramsay Dunning, Group General Manager said: “At Co-operative Energy we are committed to being fair, transparent and open with our customers and we ensure that our prices remain cost reflective at the time when the costs are incurred.
“We pledged to offer fair pricing and even after this increase we will still be competitively priced against the Big Six’s standard tariffs. We are not increasing prices to reward financial investors. We are simply no longer able to absorb these government-imposed costs.”