E.ON customers: a HUGE price hike kicked in
Customers of E.ON are set to see a monstrous energy price hike.
The Big Six supplier raised prices by 8.8% price rise on dual-fuel standard tariffs back on 26 April 2017.
About 2.5 million customers are now set to start paying an extra £97 a year on energy bills.
It’s time to switch to a cheaper fixed energy deal.
E.ON’s hike was the second biggest increase among the UK’s biggest suppliers; it was beaten only by Npower’s 9.8% price rise.
Rampant price hikes by the Big Six have prompted the government to explore a gas and electricity price cap.
The Department for Business, Energy and Industrial Strategy has said: “Wherever markets are not working for consumers, this government is prepared to act.
“We expect energy companies to treat their customers fairly and continue to be concerned by these price rises which will hit millions of people already paying more than they need to.”
More than half of E.ON’s 4 million customers will be hit with higher bills if they take no action. Don't be one of them.
Standard electricity prices will rise by 13.8% and gas prices 3.8%, taking the average duel-fuel bill to £1,144.
The German supplier admitted it had seen a drop in wholesale costs, but that the decision was down to the escalating cost of implementing government schemes, such as subsidies for renewable energy.
The company’s chief executive, Tony Cocker, said: “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, such as policies including EMR [energy market reform], RO [the renewables obligation] and the energy company obligation, which are paid for via people’s energy bills, are increasing.
“We have been able to partially offset some of these rises through our wholesale hedging policy and other means, but we do have to make an increase.”
Ofgem, the industry regulator, however, said there was “no excuse” for inflation-busting price hikes.
Whoever you believe, one thing is certain: E.ON customers that fail to find a better deal risk higher household bills.
Remember, if you're in the last 42-49 days of your tariff, your supplier can't charge you an exit fee for switching.
ARE YOU BEING RIPPED OFF BY YOUR ENERGY PROVIDER?
Our customers save an average of £380 using our price comparison tools.