05/08/11
By Naphtalia Loderick
E.ON customers face higher gas and electricity bills after the energy firm announced price rises.
Gas customers will be hit with an 18.1 per cent rise and the price of electricity will soar by 11.4 per cent from 13 September.
The price hikes will result in a £170 increase to the average E.ON bill affecting 4.4m customers.
EON is now the fourth supplier to announce new energy price rises this summer.
Around 20 million homes have now been hit by price rises, from Scottish Power, British Gas, Scottish and Southern Energy, and now E.ON. This has added an average of £176 to household bills*.
Scottish and Southern Energy and British Gas announced price rises earlier last month, and Scottish Power was the first of the UK’s big six energy firms to announce price hikes in June.
Energy firms blame increased costs
The energy firms have all blamed an increase in the cost of wholesale gas – the amount they pay for energy – for customer price hikes.
Graham Bartlett, managing director of E.ON's Energy Solutions business, said these were “uncertain times” which “have had a huge effect on wholesale prices, with events in Japan and Libya all having a dramatic effect on gas and power prices in a relatively short period of time.”
Fuel poverty
Industry watchdog Consumer Focus has called on energy regulator Ofgem to investigate whether gas and electricity prices are fair.
Consumer Focus has said energy price increases will result in an increase in the number of households in fuel poverty.
Figures released last month showed a 1m increase in fuel poverty households – households that spend more than 10 per cent of its income on keeping warm.
Switch and make savings
Anyone concerned about price rises can opt for a fixed or capped tariff to protect themselves against any further price hikes.
Energy firms also offer further discounts to customers who pay by direct debit and manage their accounts online.
Have your say
E.ON customers have the chance to put their questions about price rises to the company on Twitter on Friday afternoon. Bartlett will be answering questions on Twitter, via @talkingenergy, between 2pm and 3pm on Friday, 5, 2011.
*£176 is the average gas and electricity price increase across 9m British Gas, 2.5m Scottish Power, 5.3m SSE and 4.4m EON customers.
