Energy News

E.ON next on price hike list

By Garnet Roach - garnet@consumerchoices.co.uk

E.ON becomes fourth energy giant to reveal price increases.

Gas and electricity giant E.ON is set to follow its “big six” rivals and increase energy prices from September.

It will raise gas prices by 18.1% and electricity prices will go up by 11.4% from 13 September.

The company has five million UK domestic energy customers, and today’s announcement will push the average household bill for a dual fuel E.ON customer up from £1,033 to £1,189 - an increase of £156 or 15.1%.

Today’s news follows similar price hikes from three of the UK’s other big energy providers - British Gas, Scottish & Southern and Scottish Power - in recent weeks.

Npower is also rumoured to be prepping an increase in costs.

E.ON’s announcement comes as MP John Robertson, who sits on the energy and climate change select committee, called on the government and energy regulator Ofgem to address the spate of price hikes.

“I believe that these price hikes are wrong and reckless,” he said, citing the effect price increases have on the “fuel poor”.

“According to the government, for every 1% increase in energy bills that means that 40,000 more households enter into fuel poverty. The big energy companies are not being responsible and definitely not helpful to hard working families.”

However, a 30% increase in wholesale gas prices this year - which also affect the cost of electricity - have been blamed for the price rises, and even the Good Energy Group, which hadn’t raised prices since 2008, was forced to announce a 9.4% gas increase this week.