E.on has become the last of the Big Six energy providers to announce forthcoming price hikes of up to 6.2%.
From 16 August, 1.8 million users of E.on’s standard variable tariff (SVT) – E.on EnergyPlan – will see their bills rise.
The average annual increase for dual fuel users is 4.8% (£55), rising to 6.2% (£36) for electricity-only customers and falling to 3.3% (£19) for gas-only users.
Prepayment meter customers are unaffected.
Stephen Murray, energy expert at comparison website MoneySuperMarket, comments: “Today’s announcement by E.on completes the full set of price rises by the Big Six suppliers, although we had thought that was already the case. E.on had removed some of its discounts in March, delivering an effective increase of £22 for dual fuel customers. However, it has now added further costs to consumers on its standard variable tariff to the tune of £55.
“Five of the Big Six suppliers have now increased prices by between £60 and £75 per year in 2018 on top of an average £88 increase in 2017, with only EDF delivering lower increases. The Big Six are not alone however, with the ever-growing pack of ‘challenger’ suppliers which are taking more and more market share also announcing price increases.”
Commenting on the price rises, Michael Lewis, chief executive of E.on UK, says: “We had hoped that by making the structural changes we made earlier this year, impacting bills by around £22 a year, we could avoid an increase in our unit price. Those changes applied to all tariffs, not just our standard variable tariff, and reflected cost changes as we saw them at the time as well as bringing our tariff structure in line with most of the market.
“However, a number of costs have risen quite sharply and in particular we’ve experienced a hike in the price we have to pay for the energy our customers need, partly driven by the Beast from the East and extreme weather conditions experienced earlier this year. Through advanced purchases we had been able to shield our customers from some, but not all, of this impact.”
One way to beat rising energy prices is to check if you can switch and save. Mr Murray explains: “Switching to a fixed deal is the only way customers can deliver savings of £200/£300 now. We can talk about wholesale prices, policy costs, government intervention and the impact of ‘Beast from the East’ as much as we want, but that won’t put money back in consumers’ pockets. Switching will.”
How other energy suppliers are upping prices
The majority of major energy companies have announced price rises to take force this August. Here’s what you need to know:
- British Gas customers saw prices rise by 5.5% from 29 May.
- Bulb and Ovo Energy to up prices by 5.1%
- EDF customers saw prices rise by up to 3.5% from 7 June.
- Npower customers saw prices rise by 5.3% from 17 June.
- Scottish Power customers saw prices rise by up to 6.9% from 1 June.
- SSE and M&S Energy customers will see prices rise by up to 6.7% from 11 July.