Co-op Energy will hike its prices for the second time in six months
Co-operative Energy will increase its prices for the second time in six months, adding a collective £90 to customers' bills due to rising costs in the sector.
The energy provider will raise its prices by five per cent, or £58, for gas and electricity from 1 April. In October, the firm raised energy prices three per cent, or £32.
A spokesperson for Co-op Energy said: “We try to protect customers from price fluctuations wherever possible. In recent months, however, we have absorbed a number of rising costs, including network charges and industry obligations.
“This is no longer sustainable and we have reluctantly taken the decision to pass on some of these costs to customers by increasing the Green Pioneer standard variable tariff by an average of five per cent."
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The price hike will increase 100,000 dual fuel customers' bills from £1,121 a year to £1,179 a year.
This follows recent prices rises from EDF, Npower and ScottishPower. Alternately, British Gas has extended its price freeze due to "significantly" reducing its costs.
Claire Osborne, energy expert at uSwitch.com, said two price rises within such a short space of time is "a real double whammy for loyal customers".
Osborne added: "This is yet another reminder that loyalty doesn’t pay. With one in three working families already struggling to pay their energy bills – and the cost of living set to rise across the board – any price rise will have an impact on the bottom line for families struggling to make ends meet."
Yesterday, British Gas said it will roll out a new customer loyalty scheme to reward long-time customers with cost cutting deals and perks like Sky TV.
Alex Neill, managing director of consumer group Which said the government and regulator Ofgem should step in.
"Co-op Energy's price rise is another blow for customers, who will be outraged that their energy bills are set to go up when the regulator suggested that inflation busting rises are unnecessary."
“Millions of hard-pressed energy bill payers are continuing to suffer due to a lack of competition in this market. If energy companies fail to properly engage with their customers, then the government and the regulator must step in.”