CO-OPERATIVE Energy plans to cut electricity and gas prices by 3% on average from February, saying mild autumn weather had reduced underlying wholesale costs.
The newcomer to the UK energy supply market is the first firm to announce cuts in energy rates this winter.
Its move comes about four months after Britain’s big six providers – EDF Energy, E.ON, RWE npower, Centrica, SSE and Scottish Power – passed on steep increases.
Gas for summer 2012 delivery – a benchmark contract – has fallen 15% since early August, around the time when the first winter price rises were announced.
Co-op Energy business-development manager Nigel Mason said: “This autumn’s exceptionally mild weather has led to a drop in wholesale prices, so we’re passing on those savings as soon as we possibly can.”
He said the subdued economic outlook, diminishing concerns about Middle East supply cuts and hopes for new reserve had also helped to weigh on wholesale prices.
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