Co-operative Energy has recently announced plans to lower energy prices from next year, sparking speculation on whether or not Britain is on the verge of a price war in the energy market.

Since its launch in May 2011, Co-operative Energy has enticed over 16,000 customers, most of which will benefit from an average price cut of 3% from 1 February next year. This will result in an average yearly saving of £35.

The ethical energy provider has said that this move had been prompted by a pledge made by the company to provide Britons with a fair and transparent energy deal, and with the recent fall in wholesale energy prices, a price cut seemed only fair.

The announcement has been applauded by Energyhelpline.com, an independent price comparison site, as a move that could help bring about price cuts from the other big energy suppliers.

A spokesman for the site commented that: "Although a new challenger in the market with a small customer base at present, the Co-op is a big consumer brand and there is the possibility that this move could herald a much-needed round of price-cutting in the domestic energy sector."

The Co-op?s message of ?people before profits? is one that will likely echo the feelings of the British public at present, and could possibly be a very powerful tool in attracting new customers.

Customers looking at the announcement made by the Co-op will no doubt pick up on the fact that wholesale energy prices are falling and will very likely wonder why the Big Six energy providers aren?t passing on the savings to their customers like the Co-op is committed to doing.

The move is being hailed by many as a ?shrewd PR tactic as the company can rightly claim to be leading the market on price cuts and delaying price rises" and a welcome Christmas present for customers.