Co-op Energy has become the first big-name supplier to scrap its standard variable tariff (SVT) for customers on a fixed deal.
Last September, Eon became the first of the big six providers to announce it would scrap its SVTs, when it said it would no longer roll over all discounted fixed-price customers onto the expensive default rate, (which 66 per cent of the market are still on).
Scottish Power followed suit in October, then a month later British Gas announced it would abolish SVTs for new customers by 31 March 2018, and from 1 March, Npower will move customers on its Online Price Fix February 2018 tariff (an expiring one-year fix) onto a new fixed-price 18-month deal, rather than onto its standard variable tariff (SVT).
But Co-op Energy is the first big-name supplier to actually scrap SVTs.
Co-op Energy no longer moves customers onto its Green Pioneer standard variable tariff (SVT) when their fixed-price tariff ends. Instead it moves them onto a new fixed tariff, which will run until May 2019, with no exit fees.
Although the new tariff is almost £100 cheaper per annum than Co-op Energy’s SVT, it is still reportedly £251 a year more expensive than the cheapest deal on the market at the time of going to press, based on typical use.
It is also worth noting that the change only applies to customers whose fixed deal has ended since 31 December. Those currently on Co-op Energy’s SVT won’t automatically be moved on to the new tariff.
A Co-op Energy spokesperson said: “We write to everyone approaching the end of their fixed tariff at least three times before it expires to encourage them to switch to our best-priced tariff.
“This new deal ensures that customers who have chosen a fixed tariff in the past get the peace of mind that the price they pay on their new tariff will be fixed until May 2019.”