E.ON increases gas and electricity prices - Gas and electricity - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

E.ON increases gas and electricity prices

E.ON increases gas and electricity prices

Category: Gas and electricity

Updated: 05/08/2011
First Published: 05/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

E.ON has become the latest gas and electricity provider to hike its prices.

Electricity prices will rise by 11.4% and gas prices by 18.1% from 13 September, with the provider blaming world events for forcing wholesale prices higher.

E.ON's dual fuel customers will suffer a rise of 15.2%.

The move is the latest in the most recent round of price rises announced by the major energy providers.

Last month, Scottish and Southern Energy announced household electricity prices will increase by an average of 11%, and for household gas by 18%, from 14 September.

Domestic tariffs at British Gas for gas are being increased by an average of 18%, and for electricity by an average of 16%, from 18 August.

Scottish Power confirmed in June that it would be increasing gas and electricity prices for retail customers by 19% and 10% respectively.

Graham Bartlett, managing director of E.ON's Energy Solutions business, said uncertainty around the world had had a huge effect on wholesale prices, with events in Japan and Libya all pushing up gas and power prices in a relatively short period of time.

"In fact, even the Bank of England's Inflation Report pointed out that wholesale gas prices had increased by around 20% between February and May alone, and that retail prices were expected to go up by double figures," he added.

Mike O'Connor, chief executive of Consumer Focus, said the news of yet another price rise will leave the average energy bill weighing in at £1,250 a year.

"Many consumers worry how they will afford to keep their homes warm this winter given other price rises and flat or falling incomes," he added.

"Four of the Big Six have now raised their prices by similar amounts.

"Customers need to know whether these increases are warranted. Customers will feel they didn't get the benefit when wholesale costs were low. Wholesale costs are around a third lower than their 2008 peak yet consumer prices have reached an all-time high.

"If consumers are to stomach such price rises, they need to know they are fair."

If you're concerned about the rising cost of gas and electricity, we have teamed up with energyhelpline.com to help make sure you are getting the best energy deal.

Energyhelpline.com is fully accredited by the Consumer Focus Confidence Code to compare energy for domestic consumers.

Compare gas & electrcity suppliers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Common energy mistakes that cost you £££

The heating system is probably working overtime at present, but what if you could cut your bills without battling hypothermia? The key is being energy efficient, yet households could be wasting hundreds of pounds by making costly energy mistakes.

4.8m people switched energy supplier last year

We’re often told of the amount we could save by switching energy supplier, and happily, the message seems to be getting through, with the number of consumers switching providers having reached record levels last year.

EDF cuts gas prices, but hikes electricity

EDF Energy has announced that it’s cutting gas prices for customers on its standard variable rate tariffs, but unfortunately, electricity customers could lose out, as they’ll see a rate increase from March next year.
 
Close