image

Energy firm cuts electricity charge

An energy firm has bucked the trend of rising prices by announcing it will reduce its electricity charges by 2% from December 21.

Co-operative Energy, which supplies 60,000 households following its launch 18 months ago, said the move reflected lower wholesale electricity costs.

It said the move would make its electricity prices for this winter lower than last year, claiming it would also be £88 cheaper than the average standard tariff for online direct debit charged by the “big six” energy firms.

Business development manager Nigel Mason said: “Unlike our competitors, we are not driven by a need to make profits for external stakeholders.”

The business, which is part of the Midcounties Co-operative, the third largest co-operative in the UK, is distributing £105,000 to its customers this month as a half yearly share of profit.

Meanwhile, around 8.5 million households are to be hit with a 6% rise in their energy bills as British Gas becomes the latest utility giant to hike its tariffs.

The move will add another £80 to the typical annual dual-fuel bill for a British Gas customer, or £1.50 a week. There was mounting anger over the bill blow – first announced last month – after British Gas parent Centrica said it was set to make profits of £1.4 billion this year.

Experts also predict around £575 million of pre-tax profit from its British Gas residential arm after gas consumption for the first 10 months of 2012 rose 9% because of colder than normal weather.

Audrey Gallacher, director of energy at Consumer Focus, called for rules forcing energy firms to tell customers about the link between bill rises and profits.

She said: “Consumers will be sceptical over supplier profits, given questions over how justified recent price rises have been. It is essential that all energy firms are required to provide information that is fully clear and comparable, including profit and trading information from across the whole of their business, if customer distrust is to be tackled.”

British Gas’s bill increase comes amid a spate of tariff rises among the UK’s “big six” power firms. SSE was the first to increase prices, lifting bills by an average of 9% in mid-October, affecting about five million electricity customers and 3.4 million gas customers.

Npower follows with its increase on November 26, while EDF and Scottish Power will raise bills in December. German-owned E.ON – the last of the utility firms to lift prices – is planning to announce an 11% tariff rise next month, which will come into effect in January, according to the Sun newspaper.

The following two tabs change content below.
Hello ... I am the Creative Director and Website Editor for Silversurfers and manage all the social media too. I hope you find the features and articles we have shared with you of interest and relevance. I hope you enjoy Silversurfers and all that we offer ... Sally

Latest posts by Silversurfer's Editor (see all)

Leave a Comment!

Not a member?

You need to be a member to interact with Silversurfers. Joining is free and simple to do. Click the button below to join today!

Click here if you have forgotten your password
patricia c stevenson
20th Nov 2012
0
Thanks for voting!
I do think it is time that the powers that be put a cap on what all the Fuel Company's charge, when you hear what profits they are make it, there is no need for the rises. To make matters worse they always put it up in Winter, they must think we are all stupid & do not know what they are doing ( Lining there pockets yet again ), while most of the Country freeze because they cannot afford the bills. With a bit of luck they will cut there own throat's & there profits will plummet. Won't that make a change.

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!