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 in January.
The big question beyond what have we announced, is one we must and will answer – why are prices going up?
The truth is we’ve worked hard to get our running costs down and these are lower this year than last. We also believe our profit levels are fair and will continue to be so.
In 2011 our domestic profit margin, the amount we make from providing you with electricity and gas, was less than 2% and we’ll make public the amount we make this year when we publish our 2012 results.
But the other costs which make up energy bills are going up:
- The price we pay for energy on the national and global wholesale markets is higher than it was. Next year the Government’s Carbon Price Floor will add another charge to electricity bills; we and others regard this as simply a tax.
- Also on the up are network costs – the prices we pay other companies to use the wires and pipes which transport energy to your home; these are now more than 10% higher than last year and are expected to climb higher still in 2013.
- Costs associated with the government’s social schemes have more than doubled in the last twelve months and another increase is expected next year.
- And finally, the cost of increasing the amount of energy we get from renewable sources has risen by over 60% compared to last year and this is expected to rise in 2013 too.
What makes up an average weighted E.ON dual fuel bill?
We can’t control these external costs, but we can and will do whatever we can to help our customers. From help to stop heat escaping from homes to offering fixed products that offer certainly, we’re doing a lot.