Co-operative Energy Customers - Heads Up

bubblesbonbon

I received an email from Co-op Energy last week with thier lastest newsletter attached. I read it but didn't take in the bit about their new Fixed Rate Tariff (Thought it was to do with the Which Big Switch thing)

Got another email from them today which I read properly so I phoned them and got a quote for the fixed rate offering.

Surprise, surprise - it's 8.7% cheaper for my (average) usage for dual fuel, FIXED until 31st July 2013!

This is only available to existing customers or to those who signed up to the Which thingy.

Only drawbacks seem to be

- £30 per fuel early cancellation fee should you want to get out.

- Prices may fall during the term

So if there are any other MSE's that are customers of Co-op Energy who like me missed the deal, then ring them for a quote before 14th June

- A utility company offering a reduction to go fixed rate - Now that's a refreshing change.

MillicentBystander

If you check out the switching sites you will see that the majority of the cheapest tariffs are currently fixed ones. Call me cynical but that suggests to me that the energy suppliers are expecting wholesale energy prices to decrease.

bubblesbonbon

MillicentBystander wrote: »

If you check out the switching sites you will see that the majority of the cheapest tariffs are currently fixed ones. Call me cynical but that suggests to me that the energy suppliers are expecting wholesale energy prices to decrease.

If my past experiences with BG are anything to go by you are probably right. Whenever I fixed, prices went down. Changed to standard rate and up they went.

Pays yer money and takes yer choice.

Itsgottabedone

Thanks, OP - hadn't got round to reading their reminder email, and you prompted me to take action! My feeling is that Co-operative are more ethical than BG or other major players, so fingers crossed that it's a smart move...

jhp

They posted this on there site when they launched .

"Posted on May 10, 2011 by Co-operative Energy
Co-operative Energy has today marked its public launch with a challenge to the industry to stamp out sharp practice and give all customers a fair and honest deal.
The new energy provider has thrown down the gauntlet to the “big six” utility retailers describing their multi-tariff offerings as “baffling and bewildering” and has promised to champion a fairer deal for customers through its new, simple tariff and single unit price.
Co-operative Energy is also challenging the big profits the energy retailers are making by including a twice-yearly profit sharing deal for all Co-operative Energy customers, who own the business.
And they have promised not to hard-sell customers, there will be no exit penalties for switching customers and they won’t lock people into fixed-price contracts.
They will source electricity from low carbon generators, including renewable energy generators like wind and hydro. The aim is for the carbon content of their electricity to be less than half the national average by April 2012.
Co-operative Energy’s Nigel Mason said: “It’s time this industry had a radical shake up. Customers have been bamboozled by complicated tariffs and confused by changing prices and unfair contracts, and it has to stop.”
And he added: “We are determined to provide a fair and transparent service for Co-operative Energy customers and to let them share in the profits. We are campaigning for long-overdue reform in the energy industry.
“We will set an example that will show the big six how it can be done better.”
Co-operative Energy’s stance has been backed by Consumer Focus, the consumer watchdog which monitors the energy industry on behalf of the public.
The launch of Co-operative Energy comes just days before the end of an OFGEM Retail Market Review consultation into the industry which is calling for action to force energy retailers to work in the best interests of consumers."

macman

Being 'ethical' doesn't stop them from pricing their fixes according to the way they think that wholesale prices are going. The Co-op is a commercial business like any other, it just happens to have a co-operative structure.

MillicentBystander

macman wrote: »

Being 'ethical' doesn't stop them from pricing their fixes according to the way they think that wholesale prices are going. The Co-op is a commercial business like any other, it just happens to have a co-operative structure.

But the fact remains they are doing stuff they said they would not. They have also gone down the cashback incentive route to attract new customers which again is not exactly what a co-op should be getting involved in. Sadly, it would appear they have realised the only way they can keep growing/compete is to become more like the Big 6.

Stuart_W

I've been with Co-operative Energy before their main launch in May 2011. I like the approach of simplicity and clarity - a simple unit rate and standing charge, no complex hidden fees.

I think the principles of no hard sell still apply. If the market is moving to fixed-rate tariffs, the Co-op need to have something to offer amongst all the crowds.

I am still able to enjoy the product I signed up to - one single rate, flexible, prices will rise or fall as wholesale prices dictate, and throughout all my time as a Co-op Energy customer I will always have a promise to be on a consistently competitive deal in the long term. I don't want to play the switch-suppliers merry-go-round every year. I've had my time doing that.

For me personally, a fixed rate mortgage was very important - one of the most significant elements of our household's monthly expenditure. A fixed rate mortgage meant paying the same each and every month. Fixed rates for energy doesn't actually achieve the same thing - I have no idea whether this month's energy demand will be higher - or lower - than last month. Fixing the unit rate doesn't actually fix my monthly usage costs, so rather than just gamble over trying to fix when prices are about the rise and unfix when they are about to fall, I'd rather be on a flexible rate that will remain competitive in the long run.

Securing more customers and achieving better scale is good news for all customers in the long run. Customers who, as members, can actually have a say in the running of the business.

kar999

The policy change since their launch in 2011 (to introduce a fixed price tariff) was all to do with the Which? Big Switch Auction.....

http://newmedia.cit.coop/bulk_email/coop-energy/customer-newsletter/170412/index-big-switch.html

Ethical energy supplier Co-operative Energy has emerged triumphant in the Which? Big Switch, winning the ground-breaking energy auction with its simple-to-understand, market-leading tariffs.

Co-operative Energy’s Nigel Mason explained: “We’re delighted to have emerged as the winner in the Which? Big Switch auction. It proves that we are highly competitive and that our values, the things that we believe are important, are important to customers. ”
“We’re also delighted to see the success of this first, large-scale collective buying scheme which is a great example of united buying, a principle at the heart of the co-operative movement.”
Nigel explained: “We have used the auction as a launch pad for our new fixed rate tariff for people who want certainty about the rates they pay. People need to stay with us for a minimum of 12 months and that allows us to offer a slightly reduced unit rate for both gas and electricity.”

http://www.cooperativeenergy.coop/2012/05/11/co-operative-energy-emerges-triumphant-in-uks-first-mass-switching-scheme/

I signed up, as an electricty only customer, for the fixed tariff which represented a 7% decrease compared to my current rate.

I'm also due 1.5p in the pound rebate on consumption plus £4.50 for submitting monthly meter readings.

Terrylw1

kar999 wrote: »

Co-operative Energy’s Nigel Mason explained: “We’re delighted to have emerged as the winner in the Which? Big Switch auction. It proves that we are highly competitive and that our values, the things that we believe are important, are important to customers. ”
“We’re also delighted to see the success of this first, large-scale collective buying scheme which is a great example of united buying, a principle at the heart of the co-operative movement.”
Nigel explained: “We have used the auction as a launch pad for our new fixed rate tariff for people who want certainty about the rates they pay. People need to stay with us for a minimum of 12 months and that allows us to offer a slightly reduced unit rate for both gas and electricity.”

Won what exactly? 52k customers, big deal...I'm sure that will dent the millions the big 6 have.

No lock in per an earlier post, but...you have to stay for over 12 months to benefit. So, a lock in by another name then?

kar999

I'm sure you're right.. The big six "cartel" will still roll on with a toothless Ofgem in the wings.

Their variable rate was the best tariff for me 12 months ago and, as a rate tart, I'm happy to lock in for 12 months @ 7% cheaper than their variable rate. (I'm not that fussed about Ethics just the pound in my pocket!)

They have however gone against their earlier principles of 12 months ago by introducing a lock in tariff but then this is what they now say.....

We have been thinking about a fixed rate tariff for several months as that’s the way the market has been shifting. We decided to use The Big Switch as the chance to trial a new fixed rate tariff to the largest possible audience.

If you don’t want to make that commitment and prefer the simplicity of Pioneer, which has no exit penalties, you might prefer the flexibility which that tariff offers.