E.ON price hike hits as Britain shivers

Published:
21 January 2013
Topic:
News,Gas & Electricity

This weekend nearly four million households have seen their typical dual fuel bill increase by around £110 a year to £1,370 - an average rise of 8.7% - as E.ON's latest price hike bites.

E.ON pledged not to increase its prices during 2012, allowing it to achieve marketing capital over the rest of the 'Big Six' energy providers. It duly announced its increase in December, giving customers the required 30 days' notice of the actual increase on January 18.

Those paying electricity and gas bills separately will see the cost of electricity and gas rise by 7.7% and 9.4% respectively.

Switch to save

At MoneySupermarket we reckon around half of all UK households are paying an average of £200 a year more than they have to for their gas and electricity.

If you've been on the same energy plan for more than 12 months, chances are you're overpaying for your energy, regardless of who your supplier is. We can save you money by finding the cheapest deal and getting you started on the switching process without delay.

Wholesale prices

In commons with the other main energy firms, E.ON blames the rising cost of energy on the wholesale market as well as extra regulatory costs for fuel providers.

In December last year, Scottish Power increased bills by an average of 7% for its 2.3 million customers, adding £104 onto a typical bill. December also saw EDF Energy impose a 10.8% rise, an extra £122 a year for the firm's 3 million customers.

In early October 2012, British Gas also increased premiums by an average of £100 and nPower joined in with an £80 jump while Scottish and Southern Energy (SSE) customers saw a 9% increase.

 

Energy market under investigation

Energy regulator Ofgem is currently investigating the wholesale price increase throughout the energy market. It wants to see bills simplified throughout the industry which would make it much easier for customers to compare and switch providers - a process which currently takes six to eight weeks.

Those looking to keep the cost of fuel as low as possible should consider paying bills by monthly direct debit rather than via post or cheque. Also, if you're paying for your gas and electricity through different providers you may want to switch to a dual fuel bill and get both from one firm. Not only does it save time and hassle, it's generally cheaper.

Winter months costing households

According to our research, households use 40% of their annual energy consumption during the winter months. This means your next fuel bill will on average cost more than £500. In light of this, the research also found that switching energy provider can potentially save you hundreds of pounds.

Those living in the South East can potentially save nearly £400 if they switch to the cheapest energy deal. Homeowners in North Wales and Liverpool were found to be shelling out just under £1,500 for their fuel bills, the highest in Britain. But they could save an average of £306 by moving from their current energy provider.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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Ed Towner

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