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E.ON announces 3.7% gas and electricity price rise – Updated

The move means every one of the big six energy suppliers has raised energy prices this winter

E.ON's price increase has been set at 3.7%

E.ON’s price increase has been set at 3.7%

E.ON today became the last of the big six energy providers to announce a price rise in the past two months.

The increase of 3.7%, or 4.3% for standard dual fuel customers paying by direct debit and £15 or 1.1% for cash and cheque customers will be effective as of the 18 January 2014. The rise will take E.ON’s average dual fuel cash and cheque bill from £1,370 to £1,385 per year.

The German-owned energy provider supplies roughly 4 million households in the UK.

Average household energy bills

Supplier Pre-hike bill Post-hike bill Hike effective Bill after levy reduction Cut effective
British Gas £1,340 £1,471 23/11/2013 £1,423 1/1/2014
EDF Energy £1,332 £1,384 3/1/2014 £1,384 N/A
E.ON £1,370 £1,385 18/1/2014 £1,385 N/A
npower £1,352 £1,491 1/12/2013 £1,441* TBC 2014
ScottishPower £1,368 £1,480 6/12/2013 £1,430* TBC 2014
SSE £1,354 £1,460 15/11/2013 £1,410* March 2014
Average £1,353 £1,445   £1,412  

Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *Based on DECC’s calculation that reductions will be worth £50 on average.

Green levies being removed at different speeds

EDF Energy and E.ON, both took into account reductions in green levies when they worked out the latest increases in gas and electricity prices.

Households signed up to the rest of the big six suppliers have found themselves in a less attractive position, as the reductions were not initially taken into account. This has resulted in price hikes of up to 10.4%, which in some cases could remain in place into 2014.

npower, ScottishPower and SSE have not yet announced when reductions will be implemented, and British Gas has confirmed its customers will see the effects of the cuts on 1 January 2014.

‘Government has tried to lend a hand, but suppliers now have to play their part too’

Ann Robinson, director of consumer policy at uSwitch, said: “This round of price hikes has added to the burden for consumers struggling to afford to stay warm. The Government has tried to lend a hand, but suppliers now have to play their part too. They must do the right thing by passing the cuts on to their customers ASAP so that households can feel the benefit throughout winter. Suppliers that are unable to provide this much-needed relief this year should backdate it so that customers don’t lose out.

“However, consumers also need to understand that even with this reduction, their bills will still be higher. This is why they must continue to fight their own corner by ensuring that they are paying the lowest possible price for their energy. The Government reduction is welcome, but it’s small change compared to the price cut you could get by switching to one of the cheapest tariffs on the market.”

‘We have moved quickly to pass on the benefits of changes announced by the Government’

Tony Cocker, Chief Executive, E.ON UK said: “There is no escaping the simple fact that any price rise is unwelcome news for customers. We know that, which is why we have held off for longer than most of our competitors and worked hard to keep our rise as low as possible. However, now more than ever, the help we offer our customers, in terms of advice and practical measures, is absolutely vital.

“We have moved quickly to pass on the benefits of changes announced by the Government at the beginning of this week. This means we have reduced the overall level of a rise that is necessary to cover the extra costs we are seeing in some areas, as well as making sure we continue to deliver a sustainable future for all of our employees and maintain our investment in the UK.

“Whilst there can be no guarantees, the likelihood of further price rises over the next 18 months caused by an increase in the cost of social and environmental obligations has receded due to the recent action taken by the Government.”

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