Should the increase take place, it is likely that E.ON will hike bills by roughly 4% — the equivalent of an extra £50 per year for the average dual fuel customer.
It had been reported previously that E.ON would be increasing its prices by closer to 6%; however, the recent changes surrounding green levies mean the company would be able to implement a lower increase.
E.ON has close to 4m customers in the UK and together with the rest of the big six – British Gas, EDF Energy, npower, SSE and ScottishPower – supplies close to 95% of households.
‘Not a single measure that will cost the energy companies’
Caroline Flint, Labour’s Shadow Energy Secretary, was keen to point out that the lowering of green levies would not wipe out recent price rises.
“There is not a single measure that will cost the energy companies a single penny,” she added.
The Labour party has pledged to freeze energy rates for 20 months should it win the next general election. Prime Minister David Cameron has referred to the promise as a “con”.
E.ON ‘Doing the right thing by shaving … money off the increase …’
Ann Robinson, director of consumer policy at uSwitch told the Telegraph: “Obviously what E.ON is announcing is not welcome news, but it appears they are doing the right thing by shaving a bit more money off the increase they were planning.
“I cannot believe that we are still waiting for details from some of the others. People need help now.”