The average dual fuel increase for customers on Co-op Energy’s Pioneer tariff will be £57.36 per year, bringing the typical bill up to £1,315 per year.
The new tariff will affect new customers from 21 October, but existing customers will not be affected by the increase until 8 January next year.
The price increase represents half the of the price increase in the wholesale costs in what it calls a move to “protect both new and existing customers it has resisted passing on a full price rise”.
Ramsay Dunning, general manager of Co-op Energy, said: “Due to increasing energy market costs beyond our control, namely the costs associated with buying energy and getting it into customers’ homes, we find ourselves in the position of having to now pass these costs on to our customers.
“As a customer-owned business we wanted to do everything within our power to make sure that the increase we are forced to pass on as a supplier is as low as possible.
“To demonstrate our commitment to our customers we have decided to effectively go halves and absorb the remaining cost.”