Another Big Six supplier joins the bandwagon that is on spree of increasing energy prices. E.ON has announced a 13.8% increase in electricity prices, 3.8% increase in gas and 8.8% increase in dual fuel prices which would come in effect from the 26th April of this year. The average increase of £97 will affect 2.5 million of its 4 million customers.
The energy price hike would push the average duel fuel bill up to £1,144, which is much higher than the cheapest deals in the market costing just £900. The company blamed the social and environmental schemes as the main reason for increasing energy prices. They said that renewable energy subsidies and other programs result in shooting the home energy cost by adding around 36% extra.
They have declared to send letters to its customers about the availability of cheaper deals. The letters would have a tear-off permission slip which can be filled by the customer to switch to a cheaper deal from E.ON before the implementation of the price rise.
The company would also be offering special deals to customers that are above 65 years of age and would do the same for vulnerable customers so that they do not feel the pinch of the price rise. The step came up as a blow to customers and has been widely criticised by energy experts.
E.ON UK chief executive Tony Cocker clarified the reasons for the decision by saying that ‘This is the first time since January 2014 that we have increased our standard variable prices. It is an announcement we never want to make but is due in large part to the fact that many of the costs we don’t directly control, such as policies including EMR, RO and the Energy Company Obligation (ECO), which are paid for via people’s energy bills, are increasing. We have been able to partially offset some of these rises through our wholesale hedging policy and other means, but we do have to make an increase. We will continue to work to make sure our customers are on the best tariff for them.’
E.ON is the fourth Big Six supplier that raised its energy prices this year. Their counterpart, EDF went ahead with announcing 8.4% increase in electricity prices while Npower declared a massive price hike that would cost 15% more on electricity bills and Scottish Power went ahead with 10.8% of electricity price hike. All these companies have chosen March as the month to bring their decision in effect.
Contrary to these, British Gas declared a price freeze until August 2017 making its customer relaxed and happy. SSE has also promised to keep the energy prices intact till April. This step by E.ON has raised the chances of government intervention into the energy market. We can expect some strict action and price capping in the near future.
A statement given by the Department for Business, Energy and Industrial Strategy stated that “Wherever markets are not working for consumers, this government is prepared to act. We expect energy companies to treat their customers fairly and continue to be concerned by these price rises which will hit millions of people already paying more than they need to.”
An Ofgem spokesman said: “In the past few weeks, suppliers have responded to increasing cost pressures by announcing price freezes as well as price increases of different levels. This shows that competition is beginning to bite, with some suppliers competing more effectively than others to keep their prices and costs down.”
To conclude, as all Big Six suppliers are lining up to increase energy prices, the customers need to be vigilant and proactive to save their money. It is important to either make a switch to the cheapest deal offered by the same supplier or you can switch to another cheaper yet reliable energy supplier.
We are ready to help you to compare the energy prices and make a hassle free switch. All you need to do is check our website, fill in some details, switch and save up to £578. To know more click https://freepricecompare.com/home-energy/ or call our friendly and experienced team of price comparison experts on 02034757476.