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Co-op begins price war in bid to break Big Six stranglehold by holding increase at 4.5%
Increase in cost of British Gas bills to be implemented next month
The Big Six energy firms were under pressure to limit their price rises last night after a rival supplier pledged to hold increases at just 4.5 per cent.
Co-Operative Energy today revealed a price hike for its 150,000 customers - but said it would delay the increase until next year and limit the rise by swallowing half the cost of rising wholesale prices itself.
The announcement came amid a political row about how hard-pressed Britons should deal with soaring energy bills, after the Prime Minister's spokesman said consumers "may wish to consider" wrapping up warm at home to help to keep their heating bills down.
Downing Street later insisted that Mr Cameron was not seeking to tell people they should put on a jumper when temperatures drop, but the comment was jumped on by the Labour leader, Ed Miliband, who said: "[The Conservatives'] crime policy used to be: 'Hug a hoodie'. Now their energy policy appears to be: 'Wear a hoodie'."
Mr Miliband continued: "These responses to the energy price rises show how little Mr Cameron and his Government stand up for the interests of hard-working people.
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