E.ON to raise energy prices by 8.7% from January

E.ON has announced it will raise its gas and electricity prices by 8.7% from January 18th.

It is the last of the big six energy providers to announce a hike. Average gas prices will rise by 7.7% while electricity is going up by 9.4%.

E.ON price rise

E.ON has around 4.8 million customers and letters are being sent out to approximately 50% of these who will be affected by the price hike.

It says it has held off for as long as possible with this hike and blames both the rising price of gas in the wholesale market and the cost of using gas networks for the rise.

The amount being paid out for Government energy schemes, especially those focusing on providing subsidised or free insulation, has also pushed up costs, along with the cost of using renewable energy sources.

Tony Cocker, E.ON Chief Executive, said: "We have held back from increasing our prices for as long as we possibly could and at the same time have worked hard to reduce our own costs as a business so that our customers can get the best price possible.

“However, some 16 months after our last price increase, and almost a year since we actually cut our electricity prices, we have had to make the difficult decision to increase our prices.”

Energy price rises

The news follows on from price rises announced by all the other big six providers – British Gas, Npower, EDF, Scottish Power and Scottish and Southern Energy (SSE).

Although it's not a shock decision, it's unlikely to go down well with customers who are already being squeezed financially. It will also come in just 18 days after a price freeze from the company ends on 31st December.

Price rises from the big six

Although there is little customers can do about rising prices, checking you’re on the right tariff is the first way to save money. According to Energyhelpline the average amount saved by switching tariffs it £211 so it’s worth doing – if you’re able too.

You can compare prices on our comparison tables and below I've listed the cheapest deals currently on the market. There are also lots of ways to cut down your energy bills and our piece Ten ways to save on energy lists several useful suggestions and our guide on switching will give you step-by-step instructions.

Cheapest fixed-rate energy tariffs

* based on average dual fuel tariff costing £1,400. All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity (source: energyhelpline)

Are you an E.ON customer and are you worried by the increase in bills? Let us know in the comment box below.

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