E.ON raise prices by £48 per bill

Authored by Huw Oxburgh
Posted: Friday, December 6, 2013 - 13:35

E.ON energy has announced that they are raising their gas and electricity prices by around £48 per customer.

The changes will see around four million UK energy customers pay more

The price represents an average rise of 3.7% on dual gas and electricity bills and will come into effect from 18 January 2014.

Electricity only bills will also rise by 3.7% (£20) while Gas only bills will rise by 4.2% (£37) for the average customer.

E.ON claim that the price rise had been significantly reduced from following the restructuring of the green levy announced in yesterday’s Autumn Statement.

It is thought that the bill increase would have increased by 6.6% nearly double the current price rise.

However Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, has called for further action.

She said: "This latest price hike just goes to show that even after the Government’s changes to green levies people’s energy bills will be higher this winter than last. This is why nothing less than a price freeze and reforms to stop the energy companies overcharging again in the future will do.

"The Government boasts about the economic recovery, but for millions this is still no recovery at all. Soaring energy bills are one of the main reasons working people are £1,600 a year worse off under David Cameron."

Defending the decision 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.

The chancellor George Osborne confirmed yesterday that the government would reduce the amount of green levies charged to the energy companies

Osborne said: ”my political philosophy is clear: instead of penalising people with more taxes and more regulation, give them incentives by reducing their taxes and their bills.

“As I’ve often said, going green doesn’t have to cost the earth.”

Responding to the statement Tony Cocker said : "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."

E.ON is the last of the ‘Big Six’ energy company to announce an increase in its fuel bills.

At 3.7% E.ON have been able to claim they have a lowest price increase in the 'Big Six',  coming a shortly after EDF energy increased their bills by 3.9%.

So far only British Gas has committed to a reduction in the consumer costs, hoping to reduce its bills by £53 from 1 January.

Other companies announced their price increase before the reduction to the green levies but as of yet there had been no indication if any of the other energy giants will pass on the savings to consumers.


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