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

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 10 December 2012  |  Comments 0 comments

E.ON is the last major provider to raise its energy bills.

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

Suppplier

Annual Bill

Announced Price Rise

Effective Date

EDF Energy

£1,251

10.8%

7th Dec

npower

£1,258

8.9%

26th Nov

Scottish Power

£1,271

8.8%

3rd Dec

e.on

£1,260

8.7%

18th Jan

British Gas

£1,273

6.5%

16th Nov

SSE

£1,274

9.6%

15th Oct

Average

£1,265

8.8%

 

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

Supplier

Tariff

Average Cost

Average Saving*

Fixed until

Cancellation Penalties

OVO Energy

New Energy Fixed

£1,172

£228

Prices fixed for 12 months

£30 per fuel until end of fixed period

EDF

Blue +Price Promise June 2014

£1,182

£218

Prices fixed until 30 June 2014

None

M&S Energy

Fixed Price 2

£1,200

£200

Prices fixed until 28 Feb 2014.

£50 until end of fixed period

Scottish Power

Online Fixed Price Energy May 2014

£1,225

£175

Prices fixed until 30 April 2014

£25 per fuel before fixed end date

* 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.

More on energy bills:

How to get free cavity wall and loft insulation

The alternatives to the big six energy providers

Npower fined £60,000 for persistent nuisance calls

How to complain about your energy supplier

Energy companies keep £1.2 billion of our savings

* based on average dual fuel tariff costing £1,400 (Source: energyhelpline, 10/12/12)

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