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Eon has today announced it intends to raise prices on home energy costs from next month. The utility company will hike prices of gas by 4% and electricity by 14% – meaning anyone on a dual-fuel standard tariff will face an increase of almost 9% on their energy bills from April 2017.
Eon has become the latest of the ‘big six’ energy companies to announce price rises this year – following on from Npower and Scottish Power – and has blamed the increasing costs associated with delivering UK energy policy on the increase.
The price increase will affect 62% of Eon’s household customers – which amounts to about 2.5 million people in the UK. Eon customers who are on fixed or prepay tariffs won’t be affected.
It all means that the annual energy bill for a typical dual-fuel household paying by direct debit will rise by almost £100, from £1,047 to £1,144.
Like other energy suppliers who have raised prices, E.on has blamed the increase on the cost of renewables and other environmental and social schemes.
E.on UK chief executive Tony Cocker said: “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.
“We will continue to work to make sure our customers are on the best tariff for them. For example we will be sending more than three million letters to customers this month with personalised savings messages making it clear how easy it is to swap to another tariff that might offer cheaper prices.
“In addition we will also be working to contact a number of potentially vulnerable customers currently on our standard variable tariff with a personalised quote for an exclusive product, which will be E.ON’s cheapest tariff.”
Take action now to avoid paying more
If you are an Eon customer and are now facing the prospect of increased gas and electric prices, the best action to take right now is to run an energy price comparison and see if there is a better deal for you elsewhere.
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