E.ON price rise branded ‘monstrous’ as users face £97 a year extra
Electricity and gas supplier blames increase, which affects 2.5 million people, on rising cost of government policies.
About 2.5 million E.ON customers will pay an extra £97 a year on energy bills in what consumer groups have branded a “monstrous” and “crippling” blow for householders.
The company’s 8.8% price rise for customers on a dual-fuel standard tariff from the end of next month is the second highest increase among several announced recently by rivals, including a 9.8% rise by npower, 7.8% by Scottish Power and 1.2% by EDF.
The E.ON move prompted the government to renew warnings that it will act if the energy market is shown to be working against consumers. “Wherever markets are not working for consumers, this government is prepared to act,” said a spokesman for the Department for Business, Energy and Industrial Strategy. “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.”
British Gas has pledged to freeze prices until August, while SSE has promised to hold prices “until at least April”.
From 26 April, E.ON’s standard electricity prices go up by 13.8% on average, and standard gas prices rise by 3.8%, affecting more than half of the company’s 4 million customers if they take no action. The increases will take the average dual-fuel bill up to £1,144, compared with about £900 for the cheapest deals on the market.