MSE News: Co-op cuts energy prices: will the big six follow?

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Co-operative Energy has become the latest minnow to announce price cuts, but households shouldn't get too excited about cuts from the industry giants ..."

Read the full story:
Co-op cuts energy prices: will the big six follow?

Ken68

The Co-op still have a daily charge, so not for those that switch off gas in the summer.
But nice to see an ethical company on board.

tightarsey

The price reductions are basically complete lies. The have excluded most of their customer base, ones that signed up before 4th Oct 2011, who got different rates.
My mother signed up to Cooperative Energy between the 13th April and the 31st July 2011, price tariff 2.1. Prices have risen once already, (October 2011) now they have risen again in less than 6 months from signup.

Since joining her economy 7 tariff has risen 15.1% for daytime and 51% for nighttime, yes 51% increase for nighttime.

Area: West Midlands, Economy 7
On joining: Day 10.91 Night 4.64
From 1st Feb: Day 12.61 (15% increase) Night 7.02 (51% increase)

The press release is complete lies about a 3% reduction, and (1) excluded customers from this, that prices remain 'lower'

Cooperative are now far more expensive than Scottish Power even with its 20% increase, the company which she left.

MichaelNW

The Co-Operative Bank makes the same extortionate charges as all the other banks.

Co-operative grocery shops are as, or more, expensive than their local rivals.

And, as noted in the preceding post, Co-Operative Energy are no better than the Big Six. Speaking of the Big Six, Co-Operative Energy say on their website "When they make big profits, it’s the shareholders who benefit, not the customers. When we make profits, it’s you who benefits."

Can anyone tell me just how Co-Operative members actually benefit?

t0rt0ise

MichaelNW wrote: »

Can anyone tell me just how Co-Operative members actually benefit?

Members of the co-op get a share of the profits each year.

The first customers don't get a reduction because they are already on a lower tariff which will still be lower than those on the later tariffs after the reduction.. apparently.

MichaelNW

t0rt0ise wrote: »

Members of the co-op get a share of the profits each year.

True, but whilst any benefit is to be welcomed, in money-saving terms it does not seem very significant.... members get a point for every pound spent.. for the past two years a point has been worth 1.5 pence which can be taken only in vouchers or shares. In effect it's a non-cash discount of 1.5%

MillicentBystander

Whilst I welcome the Co-Op into the awful mess that is the G&E industry at present, I do note that for all their talk of fairness and no gimmicks, they do seem keen on giving new customers a cash incentive to join. I would respectfully ask you to think who may be paying for this marketing 'gimmick'. Got it. Is that really the point of a co-op?

t0rt0ise

MichaelNW wrote: »

True, but whilst any benefit is to be welcomed, in money-saving terms it does not seem very significant.... members get a point for every pound spent.. for the past two years a point has been worth 1.5 pence which can be taken only in vouchers or shares. In effect it's a non-cash discount of 1.5%

That is not so. I'm a member of the co-op and get cash from them twice a year.

They estimate that I would get about 30 quid a year if I took gas and electric from them. Still doesn't make them the cheapest for me but the question asked was what do members get.. the answer is.. cash.

Edit: I see where the mistake has arisen. It's not shares, it's a share account which is like a building society account where you get a pass book and so on.

t0rt0ise

MillicentBystander wrote: »

Whilst I welcome the Co-Op into the awful mess that is the G&E industry at present, I do note that for all their talk of fairness and no gimmicks, they do seem keen on giving new customers a cash incentive to join. I would respectfully ask you to think who may be paying for this marketing 'gimmick'. Got it. Is that really the point of a co-op?

What gimmick? They've lowered their prices. That seems to me to be well in the spirit of a co-operative.

MillicentBystander

t0rt0ise wrote: »

What gimmick? They've lowered their prices. That seems to me to be well in the spirit of a co-operative.

Of course and i agree with you on that. But they often offer financial, cash incentives to attract new customers. This incentive MUST at least in the most part be borne by their existing customers. That is in no way acting in the spirit of a true co-operative. That is acting like the Big 6.

MichaelNW

t0rt0ise wrote: »

They estimate that I would get about 30 quid a year if I took gas and electric from them. Still doesn't make them the cheapest for me but the question asked was what do members get.. the answer is.. cash.

The question was how Co-Op members actually benefit ... you're a member of the Co-Op, but will you be signing up for their energy?