Co-op Energy have announced it will scale back it’s price rise to an average of 2.5%, from it’s original announced rise of 4.5% last week.
The decision has been made in expectation of the goverment’s removal of green and social levies for home insulation from energy bills.
Group general manager at Co-operative Energy, Ramsey Dunning said “Given the expectation that an announcement is imminent that the burden of green and social taxes will be removed by the government we have decided to take a leap of faith and remove this element.”
Co-op Energy is yet to start paying for the Eco scheme, which only affects companies when they gain a certain number of customers, but had expected to start paying from January and had factored the likely costs into its price rise.
He added added that if the company have “misread the signals” they will have “no alternative but to review the decision but at least their customers will have benefited from this during the difficult winter months”.
This move echoes that of EDF Energy who announced a 3.9% price rise, but said they would have to review this and increase prices further if the levy was not removed by the government.