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E.On to raise gas and electricity prices in April | E.On to raise gas and electricity prices in April |
(35 minutes later) | |
Big six energy provider E.On has said it will increase its dual fuel standard variable tariffs by 8.8% from next month. | Big six energy provider E.On has said it will increase its dual fuel standard variable tariffs by 8.8% from next month. |
Electricity prices will rise by an average of 13.8%, and gas prices by 3.8%. | Electricity prices will rise by an average of 13.8%, and gas prices by 3.8%. |
E.On said that 2.5 million customers would be affected by the increases, which come into effect on 26 April. | E.On said that 2.5 million customers would be affected by the increases, which come into effect on 26 April. |
The average bill will rise by £97 a year. However it is the first such increase in three years. | The average bill will rise by £97 a year. However it is the first such increase in three years. |
E.On blamed the social and environmental schemes which support renewable energy, but which customers have to pay for through their bills. | E.On blamed the social and environmental schemes which support renewable energy, but which customers have to pay for through their bills. |
Wholesale energy costs had actually come down, it said, thanks to its hedging policy. | Wholesale energy costs had actually come down, it said, thanks to its hedging policy. |
But the announcement was criticised by some energy bill experts. | |
"E.On delivered yet another bitter blow to households this morning as it announced a monstrous price rise," said Mark Todd the founder of Energyhelpline. | |
"This massive increase will be very tough for customers to swallow and once again it's loyal standard rate customers who are hit the hardest." | |
Three million letters | |
Three other big power companies have announced price rises this year, while British Gas has announced a freeze until August. | Three other big power companies have announced price rises this year, while British Gas has announced a freeze until August. |
E.On said it would send more than three million letters this month to its customers, making it clear that cheaper tariffs are available. | E.On said it would send more than three million letters this month to its customers, making it clear that cheaper tariffs are available. |
In addition, some vulnerable customers - including those over 65 - will be offered special deals. | In addition, some vulnerable customers - including those over 65 - will be offered special deals. |
They will receive letters with a tear-off permission slip, which will enable them to switch to E.On's cheapest tariff before the price rises come into effect. | They will receive letters with a tear-off permission slip, which will enable them to switch to E.On's cheapest tariff before the price rises come into effect. |
Standard tariffs have come under criticism from MPs and the government, as they are more expensive than fixed-term deals. | Standard tariffs have come under criticism from MPs and the government, as they are more expensive than fixed-term deals. |
The regulator has also put pressure on energy suppliers to get more of their customers to switch to cheaper deals. | The regulator has also put pressure on energy suppliers to get more of their customers to switch to cheaper deals. |
At the moment about two-thirds of customers are on standard tariffs. | At the moment about two-thirds of customers are on standard tariffs. |