E.ON announced a price rise of 10% in February 2019, which will come into effect on 1 April 2019.
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E.ON will raise the price of its standard variable rate tariffs by £117 on average for around 1.8 million dual fuel customers, effective 1 April 2019.
The big six supplier is hiking its costs in reaction to the energy price cap rise announced on 7 February 2019.
This is the third price rise in 12 months from E.ON:
- In August 2018, E.ON raised its prices by an average of 4.8%, around a £55 increase for dual fuel customers
- In April 2018, E.ON removed the discounts it offered some of its customers as well as increasing standing charges for those paying by cheque or cash quarterly.
How much will the E.ON price rise cost me?
As a result of the E.ON price increases in 2018 and 2019 so far, roughly 1.8 million customers will have to pay an extra £131 a year.
The E.ON price increases means that the average dual fuel customer will pay up to £1,254 for their dual fuel standard tariff — about £286 more than the cheapest energy deal available as of the latest announcement.
First price cap casualty
“E.ON customers should not fall into the cap trap — a capped deal is not a good deal and standard plans are going to be more expensive in April than before the cap was introduced.
“The limit set by the regulator effective dictates how suppliers will purchase gas and electricity for their standard tariffs, restricting room for suppliers to differentiate themselves, and passing through cost changes swiftly.
“Standard tariffs were a bad deal at the old cap level and they'll be an even worse deal at the new level. E.ON customers should shop around and lock in a cheap fixed plan now to protect themselves from the risk of twice-yearly price changes. Households still have time to switch now and protect themselves from a £117 bill hike.”
What can I do to avoid the price rise?
Variable rate energy plan
Fixed rate energy plan
If you're on a variable rate plan with E.ON then your energy prices will rise. So it's a good idea to run an energy price comparison as soon as possible to find the best deal for you. And if you switch to a fixed rate plan you can protect yourself from future price rises for the length of your deal.
There's good news if you're on a fixed rate plan, as you'll get to avoid the E.ON price rises for the time being. However, be wary of complacency setting in. This is because when your fixed term comes to an end, you'll be automatically placed onto a default tariff, making you vulnerable to price rises like the one just announced by E.ON. Make sure to compare the market regularly to see if you can get a better deal.
Why did E.ON raise its prices?
E.ON's latest price rise came just four days after Ofgem annouced an increase to the energy price cap.
The new prices set by E.ON are in line with the price cap, at an average of £1,254 for their dual fuel standard tariff. When Ofgem announced a £117 increase to the energy price cap on 7 February 2019, E.ON reacted by increasing its prices by the same amount.
The default cap tariff is a limit on the unit rate and standing charge that energy suppliers can charge for their standard variable (or default tariffs). While the price cap is a maximum limit rather than a recommeded average price, E.ON is one of the suppliers that have priced to the cap since it was brought into effect in January 2019.
Previous price changes from E.ON
As previously mentioned, E.ON raised its prices twice in 2018. These price rises came into effect in August and April.
Prior to this, in March 2017, the supplier announced a price hike amidst a flurry of price rise announcements that followed a winter of price freezes from the big six.
E.ON's price rise of 9% - 4% for gas and an eye-watering 14% for electricity - made it number four of the big six to announce that, in March 2017 (past the promised months of frozen prices), it would be increasing prices for customers on variable rate energy plans.
All of the big six did eventually go on to raise their prices in 2017, with British Gas holding out until September 2017.
Which energy suppliers have raised their prices in 2019?
E.ON was the first of the big six energy suppliers to raise its prices to the new energy price cap rate announced in February 2019.
You can read about previous price changes from the rest of the big six below:
Will E.ON raise energy prices in 2019?
E.ON has already raised its energy prices in 2019, with the change coming into effect on 1 April 2019.
If you are on a standard variable tariff with E.ON then now is a good time to compare the energy market and run an energy price comparison and see how much you can save on your household bills in 2019.