Partly Cloudy

Partly Cloudy

max temp: 13°C

min temp: 4°C

ESTD 1874 Search

East Anglia: E.ON to increase energy prices by 8.7% in January

12:22 10 December 2012

E.ON is to increase its electricity and gas prices from the middle of January

E.ON is to increase its electricity and gas prices from the middle of January

Archant

ENERGY group E.ON today became the last of the UK’s “big-six” energy suppliers to announce that it will increase tariffs this winter.

shares

E.ON’s average dual fuel bill will increase on January 18 by 8.7%, with electricity rising 7.7% and gas by 9.4%.

Having pledged in May to keep residential energy prices on hold during 2012, E.ON said the new year increase was necessary due to the price of energy on the wholesale markets and regulatory costs.

E.ON, which as the successor company to Eastern/TXU is the “default” supplier of electricity to customers in the East of England who have never switched, has about 4.8million domestic customers but 800,000 of its customers on fixed and capped tariffs will not be hit by the price rise.

From 18 January, a typical standard dual fuel customer paying by cash or cheque will see their bill rise by around £110 a year to £1,370.

Audrey Gallacher, director of energy at Consumer Focus, said: “Most industries will pass on rises in costs, but given the low levels of confidence consumers need to be reassured that retail bills, wholesale costs and company profits are in balance.”

Rising energy prices have been a major driver of high inflation that has been squeezing households in recent months.

Today’s announcement comes after EDF Energy’s 10.8% price rise for domestic gas and electricity came into force last week.

SSE, which trades as Southern Electric, Swalec and Scottish Hydro, increased its tariffs by 9% on October 15, while Scottish Power raised prices by an average 7% on December 3.

British Gas imposed an average increase of 6% affecting 8.5 million customers from November 16 and Npower’s average rise of 8.8% for gas and 9.1% for electricity came into force on November 26.

E.ON chief executive Tony Cocker, said: “We have held back from increasing our prices for as long as we possibly could and at the same time have worked hard to reduce our own costs as a business so that our customers can get the best price possible.

“However, some 16 months after our last price increase, and almost a year since we actually cut our electricity prices, we have had to make the difficult decision to increase our prices.”

E.ON said that, as well as higher energy prices on the wholesale market, its network costs - the prices it pays to use the wires and pipes to transport energy - had jumped 10% this year.

The German utility company also said the cost of social schemes, including providing free or subsidised insulation, had more than doubled in the last 12 months.

The cost of using more renewable energy, which E.ON said had increased by more than 60% from last year, was also blamed for the bill rise.

E.ON said it expected costs to rise further next year and said it would also be hit by the Government’s carbon price floor, which requires energy companies to pay a minimum price to cover their pollution.

E.ON added that last year its domestic profit margin had been less than 2%.

shares

1 comment

  • amazing and they claim not to follow each other??

    Report this comment

    Carl Robinson

    Monday, December 10, 2012

Stock image of fire crews attending an incident.

Ten fire crews tackled a thatched roof blaze in a Suffolk village overnight.

Sir John French: a colourful character and respected soldier

We’ve heard about the Suffolk men who fought at the battle of Neuve Chapelle.

Ipswich Crown Court

A 19-year old man who met up with a 13-year-old girl and exchanged text messages with her despite being given a police caution for kissing her several months earlier has been sentenced to 21 months youth detention.

St Edmundsbury Cathedral overlooking colourful displays in the Abbey Gardens

Suffolk’s most important religious building has been awarded a £300,000 Government grant to pay for urgent roof repairs.

Josephine Murphy

An 86-year-old woman who had gone missing from Clacton has been found safe and well

Aftermath of a barn fire in Holton.

A television antiques expert has appealed for help rebuilding his eco-friendly arts centre in Suffolk after a major blaze destroyed the historic sawmill that was to be its showroom and workshops.

Darsham Nurseries head chef Lola DeMille and chef Tom Eagle in the cafe where they are donating money from one of the dishes to the World Land Trust.

An international conservation charity based in Suffolk is one of three organisations to benefit from a new campaign raising awareness about the impact of meat production on health, welfare and the environment.

Suffolk County Council's base at Endeavour House

Up to 23 jobs could go in a major shake-up of Suffolk County Council’s education services.

Latitude Festival, at the Henham Estate near Southwold

Suffolk poet Luke Wright has seen the Latitude festival grow from a modest boutique gathering in 2006 to one of Britain’s biggest music and arts events.

The vandals tore through Bury St Edmunds

A drunken “night of madness” saw vandals rack up over £5,000 of damage to cars, pubs and property as they roamed the streets of Bury St Edmunds.

Most read

Most commented

Topic pages