E.ON price rise to add £170 to gas and electricity bills

E.ON price rise to add £170 to gas and electricity bills

E.ON is the fourth energy supplier to raise gas and electricity prices for its domestic customers in recent months.

E.ON’s last price rise was in February 2011, when it increased gas prices by by 3.3% or £20 and electricity prices by 9.3% or £42.

The move will add an extra £170 on to E.ON’s average annual standard dual fuel bill - an increase from £1,123 to £1,293.

Graham Bartlett, Managing Director of E.ON's Energy Solutions business, admitted the price rise would be an unwelcome move, but said that rising wholesale gas prices left little option:

"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"

Like British Gas, which raised its prices last month, E.ON emphasised that energy efficiency was key to keep costs down.

However, 'the writing is on the wall.' said Ann Robinson, Director of Consumer Policy at uSwitch:

"We’re facing an across the board price hike and very few households will be escaping the impact of a double digit price rise on their energy bills this year.

“Consumer finances are being squeezed every which way, but thankfully there is something we can all do about our energy bills.

"Taking dual fuel, paying by direct debit and signing up to a competitive online plan will reduce the price we pay, while cutting down on the amount of energy we use will cut our bills even further.

“But for those who are really feeling squeezed, a fixed price energy plan will offer security and peace of mind.

"This can be especially important for those worried about the impact of price hikes on their household budget.

"But, whatever type of plan you opt for, always make sure you get an independent and impartial comparison based on your own personal circumstances before signing on the dotted line.”

E.ON will also launch a new tariff two-year fixed price deal (with no premium against standard new prices and no penalty clause for early exit) for existing customers.

E.ON said almost 600,000 customers will be unaffected by the price rise, including customers on WarmAssist tariffs.

In addition, there will be no more price increases for Age UK Energy customers for at least a year.