Co-operative Energy will pay for 10,000 fixed-price customers to switch

Covered mag, presented by Gocompare.com
  • | by Kristian Dando

We don’t want to jinx it, but there might be cause for optimism for the energy market in 2012.

Over the past month, we’ve seen price cuts abound from the 'big six' – even if they do pale in comparison to the hefty hikes they put in last year – and now, Co-operative Energy has pledged to pay the cancellation fee of the first 10,000 fixed-rate customers of rivals who jump ship to its service.

Co-Op Energy is asking new customers to provide proof of the exit penalty, and then their account will be credited on their first bill. The company claims that the Big Six are charging as much as £100 to exit a fixed price deal early.

Many customers, alarmed at the price hikes of last year, signed up to fixed price deals to shield themselves from further increases, only for slight decreases in price to be announced over the course of January. The company has also called for other energy companies to axe exit penalties for those on fixed tariffs, so more customers can benefit from the aforementioned price cuts.