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E.ON raises gas and electricity prices

E.ON raises gas and electricity prices

E.ON is raising its gas and electricity prices, costing the average customer 58.40 a year.
 
E.ON today announced it is putting up electricity prices by 9% and gas prices by 3% from 4 February, affecting around 4 million customers and making it the fifth major energy supplier to raise prices in recent months. In common with other utility companies, E.ON said it had to raise its tariffs as a result of rising industry costs, in particular wholesale energy prices which it says have increased by 35% since last spring.

The energy company said the price rise will cost the average dual-fuel customer an extra 58.40 a year, or 16p a day, but claimed this was the first increase it had made since August 2008. U Switch.com calculated the price hike will add 19 a year to gas bills and 42 to electricity bills.

E.ON added that around 1 million customers will not be affected, including vulnerable customers on the firm's WarmAssist tariff as well as StayWarm and Go Green customers. For Age UK customers, the price rise is delayed until April 2011.

British Gas, Scottish Power, npower and Scottish & Southern Energy (SSE) have all recently raised prices. Scottish Power's increase took effect on the 25 November last year, and SSE's hike on 1 December, followed by British Gas on 10December. Npower's increase came into effect on 4 January while EDF Energy has announced a price freeze on standard tariffs until March this year.

Graham Bartlett, managing director of E.ON's Energy Solutions business, said: "It's been over two years since we last increased our prices and, unlike other companies, we held off from increasing them during the incredibly cold temperatures we saw in late November and December.

"But we now have no option but to make this change due to increases in the prices we pay for gas and electricity, although our customers won't actually see the increases until next month. In fact, we're even protecting our most vulnerable customers from this increase, with most unaffected until the winter's over, and looking to help everyone where we can."

E.ON hiked its prices by 42% or 384 in 2008 and has cut prices by just 8% or 110 since. With today's rise, bills will be 37% or 336 higher than in early 2008, according to USwitch.com.
 
Taken from www.guardian.co.uk Written by Martin King
  
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