By Rachel Wait

In an unexpected move, Co-operative Energy has announced it will pay the switching penalties that some customers face if they move over from another provider to the supplier.

The provider is also calling for all energy suppliers to waive exit penalties on fixed price tariffs to allow customers to switch to other deals freely.

The move, which will be open to the first 10,000 customers, follows the recent price cuts in energy tariffs which have provided the perfect opportunity for customers to switch to better deals.

But those who are tied into fixed-price tariffs often face hefty penalties for switching - as much as £150 in some cases.

"Thousands of customers were talked into signing fixed-price contracts when energy prices were rising in the autumn," says Co-operative Energy's Nigel Mason. "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."

However, according to data from uSwitch, those on fixed price energy plans are still "sitting pretty" despite the recent price cuts. Suppliers would have to cut their prices by a further £170 or 13.5% before consumers who fixed last summer would lose out against standard plan customers.

While the average cost of a standard plan rose to £1,293 a year in 2011, the average cost of a fixed price plan taken out in June 2011 was £204 a year cheaper at £1,089, says the research.

Even though suppliers have now reduced prices, taking the average bill down to £1,259 a year, those that fixed last summer are still £170 a year better off.

Meanwhile, the average cost of a fixed price plan today is £1,149 a year which works out to be £110 cheaper than the average standard plan.