In a bid to attract new customers, Co-operative Energy, is offering to cover the cost of penalties imposed on customers who wish to switch to one of their tariffs, according to an article published by the UK Press Association.
The energy supplier has pledged that it will cover the cost of exit penalties for the first 10,000 people to switch to one of the tariffs it has to offer. The offer is available to customers leaving a fixed price contract; proof of the customer's exit penalty must be provided.
Co-operative Energy has also called for exit penalties - which can see customers penalised by up to Â£100 - to be abolished.
Nigel Mason, from Co-operative Energy, commented on the ongoing practice.
He said: "Thousands of customers were talked into signing fixed price contracts when energy prices were rising in the autumn.
"Now prices are falling and customers are checking the small print, they are facing punishing exit penalties, making it impossible for them to switch to a lower tariff.
"It's a trap. These are tough times and people don't have money to waste so we're putting our hands in our pockets and offering to pay the exit penalties for any customer that switches out of a fixed price contract to Co-operative Energy."
Co-operative Energy's announcement follows the end of Big Energy Week, in which people were advised on how they could save money on their energy bills.
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