Right now, most energy companies are jacking up their rates. They are doing this right before the coldest part of the year hits. That being said, there is one group that has gone against the grain and shocked everyone. Co-operative Energy chose not to increase their energy prices. In fact, they chose to lower their prices by 2 percent, starting December 21.
Now 2 percent is not a very notable cut. However, it is a huge cut considering that all the other Big Six energy companies are in the middle of increasing their prices. Now the only question is: Why did Co-op choose to lower its energy bills? Everyone would like to think that the company did it out of the goodness of their hearts, but that seems very unlikely.
This big cut by Co-operative Energy comes just after it was announced that the Big Six energy suppliers were being investigated by regulators for potential price-fixing. If they are found guilty, they will not only be hit with a fine, but forced to pay back all of their account holders. This may be Co-Op’s way of trying to look like it is not part of said the price-fixing scheme, if in fact there is one.
The cut by Co-Op is not going to save people a lot of money. In fact, most people will only see their energy bills cut by £9. Although that is not much, it is still better than their energy bills heading in the other direction the same amount. Thus, regardless of how small the cut, it will still benefit the energy market somewhat.
Tony Lyon, who is a worker at uSwitch.com, said that this move may just suggest that Co-Operative Energy is really thinking about putting some ethics back into the energy market. This can be done by simply cutting the high prices that consumers are paying. Even if this price cut is just 2 percent, it is sending out a clear message that other suppliers are simply not sending out at all.
Despite this good news, uSwitch still announced that Co-Op does not offer the cheapest rate, even when people factor in the price cut. Most of this is due to the company’s policy of charging prepaying customers the same rates that the standard users pay. However, their move may get other energy companies to follow suit.