Price hikes announced by Co-op Energy and Ebico

Co-op Energy and Ebico have both announced price hikes following Ofgem’s decision to increase its cap on default tariffs by £117.

According to Uswitch.com, the typical energy bill for the 60,000 customers on Co-op’s standard variable tariff (SVT) will jump by 10 per cent. The change will also affect customers of the brands GB Energy Supply and Flow Energy, both of which are owned by Co-op.

A spokesman for the company said: “Ofgem announced it was raising the level of the price cap because of the increasing costs faced by energy suppliers.

“As the UK’s largest member-owned energy supplier, we have a responsibility to run a sustainable, long-term business, which includes ensuring our prices reflect our operating costs.

“We have written to our customers and advised them if they can save money by switching to another tariff.”

Customers on Ebico’s SVT are facing an even larger increase from 4 April. Uswitch said the typical annual bill will rise by £169 – or 16 per cent – to £1,227.

A statement on the supplier’s website said: “At Ebico we are continually working to reduce costs on behalf of our customers.

“As a result we are pleased to announce that our energy plans will be priced below the new price cap levels.”

Ebico has also announced increases to its Prepay and Evergreen tariffs starting on 1 April and 4 April respectively.

All big six energy suppliers have raised their SVTs in line with Ofgem’s revised price cap on default tariffs of £1,254 which will come into effect on 1 April

Richard Neudegg, head of regulation at Uswitch.com, said: “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.”