Co-operative Energy announces 10% price rise for over 60,000 customers on standard variable tariffs
The £117 hike means the new standard variable plans will cost £1,253 on average – adding £7.5 million to bills across the country
Increase affects customers on its GB Energy and Flow brands as well
Ebico also announces a whopping £169 (16%) increase for standard variable customers – taking its tariff from £1,058 to £1,227
15 million standard credit and prepayment customers have now had a £1.7 billion price rise confirmed for 1 April
Uswitch urges customers to take action by switching and saving up to £324.
Richard Neudegg, Head of Regulation at Uswitch.com, said: “The energy price cap applies to anyone on a standard variable tariff, not just customers of a Big Six energy company.
“Now we’re seeing the first of the challenger suppliers raising their default prices. This is a clear warning to consumers that whether you’re with the Big Six or a newer provider, standard tariffs still represent the worst values deals available in the market. The move by Co-op Energy, GB Energy, Flow and Ebico could herald a series of price increases from smaller energy companies.
“Today we’ve also had the news that Solarplicity has been banned by Ofgem from taking on new customers for three months, for a variety of customer service failings. It’s right that all energy suppliers are held to higher standards and that the regulator steps in where it sees improvements need to be made.
“The good news for households is that plenty of suppliers – large and small – are still competing with cheaper and often fixed tariffs, and many are also standing out from the crowd by focusing on delivering good customer service. By shopping around, consumers can quickly and easily find not only savings of up to £324 compared to the new cap, but also compare suppliers based on their customer service record, green credentials and a range of other factors to suit their own needs.”
FOR MORE INFORMATION
Tim Dunford
Phone: 020 3872 5612
Mobile: 07785 552666
Email: tim.dunford@uswitch.com
Twitter: @uswitchPR
Notes to editors
Source: Uswitch.com
Source: Ofgem - number of non-price protected domestic customer accounts, July 2018
Co-op Energy had 64,798 customers as of July 2018 x £117 = £7,516,568
GB Energy ceased trading in 2016 and Co-op Energy was appointed the Supplier of Last Resort, and Flow was acquired by Co-op Energy in May 2018. Both GB and Flow brands continue to be operated by Co-Op.
Total standard variable customers with British Gas, E.ON, EDF, npower, ScottishPower, SSE and Co-operative Energy in July 2018 = 11,191,699. Customer numbers are then multiplied by the price rise for each supplier = £1,316,464,911.
Ofgem estimates that 90% (3.6 million) of the 4 million prepayment customers in Britain are on tariffs priced close to the PPM cap (p.4 State of the Energy Market report 2018). If those 3.6 million customers all see their PPM tariff increase to the level of the new PPM cap, the total increase is 3.6 million x £106 = £381,600,000. 11,191,699 standard credit SVT customers + 3.6 million PPM SVT customers = 14,791,699 £1,316,464,911 standard credit increase + £381,600,000 potential PPM increase = £1,690,483,545 potential total increase. Cheapest deal as of 22 February 2019 is £930. £1,254 (price cap level) - £930 = £324 7. Ofgem announcement on Solarplicity
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