E.ON has stated that a “significant rise in wholesale costs” has led to the supplier increasing standard gas and electricity rates. From 16 August, customers on E.ON’s standard variable tariff (SVT) will be hit with a 6.2% price rise for electricity rates, and a 3.3% increase for gas rates.
For the standard customers receiving both fuels from E.ON, the price rise equates to an average 4.8% increase, which is around £55 per year added to their bill.
Not the first E.ON price increase this year
In May, E.ON removed online discounts from its standard variable tariff, resulting in a 2.7% price increase for those customers affected.
This latest hike from E.ON will bring their total 2018 price increase to an average of 7.6% (£85 a year).
Claire Osborne, uSwitch energy expert, recommends switching to a fixed deal:
“Customers will be forgiven for thinking they had seen the last of the big six price rises this year so yet another increase from E.ON is a kick in the teeth for the million customers affected.
“Wholesale prices have soared recently, putting pressure on energy companies. For customers with other suppliers who are worried they will also suffer a second price rise, now is the time to say enough is enough.
“Some E.ON customers have now seen three increases totalling over £170 in the last 15 months, and now face bills £411 higher than the cheapest on the market.
“The sun may be shining and you may be starting to plan your summer holiday but if you don’t want to come home to a sky high energy bill then switch and fix your tariff now.
Five million homes switched last year and it looks like even more are taking control of their bills in 2018. No matter who you’re with, there’s no need to pay more than you need to for exactly the same gas and electricity.”
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Fixed vs Standard Variable tariffs
It can be confusing when you run an energy comparison and a supplier that has announced a price rise is appearing as a cheaper option for you; this is often due to the tariff your seeing being a fixed deal rather than their Standard Variable Tariff.
Fixed deals aren’t affected by price rises, and can be hundreds of pounds cheaper than SVTs. However, they only last for a fixed amount of time — so it’s important once the plan is up to move to another cheaper deal, or you could be rolled back onto a pricey default tariff.