Leading energy supplier E.ON has today announced that they are increasing the cost of standard gas by 18.1% and, electricity by 11.4%.
The new prices will come into effect on 13th September this year. Dual fuel customers will see a rise of 15.2% to their annual bill, pushing it up to an average £1,293 from £1,123.
E.ON has become the 4th energy supplier out of the ëbig sixí to announces price hikes within the last 6 weeks. These higher prices can be mainly put down to the fact that wholesale price worldwide has increased.
Graham Bartlett, Managing Director of E.ON’s Energy Solutions business, said: “I know that this is hard for customers and we want to help them avoid future price volatility, which is why we’ve launched our new two-year fixed price deal.î
ìThe Bank of England’s Inflation Report pointed out that wholesale gas prices had increased by around 20% between February and May alone, and that retail prices were expected to go up by double figuresî, he continued.
Following in the footsteps of Scottish Power, British Gas and Scottish & Southern Electric, E.ONís price hike will affect more than 20 million homes, adding an extra £176 to the average bill.
E.ONís last increase was in February by 3.3% for gas and 9.3% for electricity. The latest move by the energy supplier results in customers seeing their bill shoot up by 22% in 2011.
The number of UK homes facing fuel poverty this winter will increase as a direct result of the price rises. An estimated 11.93 million will be living in fuel poverty after the price hikes compared to the 9.13 million before.
Mike O’Connor, Chief Executive of Consumer Focus, said
ìYet another price rise will leave the average energy bill weighing in at £1250 a year. Many consumers worry how they will afford to keep their homes warm this winter given other price rises and flat or falling incomes. Four of the Big Six have now raised their prices by similar amounts.
Customers need to know whether these increases are warranted. Customers will feel they didn’t get the benefit when wholesale costs were low. Wholesale costs are around a third lower than their 2008 peak yet consumer prices have reached an all-time high.î
SSE previously announced price hikes with gas rising by 18% and electricity by 11%.
British Gas is increasing bills by up to 20% and Scottish Power were the first to announce they are increasing the cost of standard gas by 19%, and electricity by 10%.