Consumer concern grows as E.ON refuses to rule out a price hike

Speculation is growing that E.ON, one of Britain's big six energy suppliers, is set to raise its prices once its ‘no hikes this year' promise expires.

E.ON made a pledge in May not to increase prices for the rest of 2012 - it is the only one of the big six suppliers to make this guarantee. But, it has refused to rule out that a price hike could be on the cards for 2013, raising concerns that prices could rise again in the midst of winter when energy bills are typically highest.

The speculation comes as SSE is set to increase its prices next Monday (15th October) by 9% or £119 taking its average bill for a dual fuel customer up from £1,235 to £1,354 a year. British Gas was also hinting at a potential price hike, but has not made any official announcement as yet.  

Tom Lyon, energy expert at uSwitch.com, says: "The fact that E.ON, the only supplier to guarantee a price freeze for the rest of 2012, is unable to extend this commitment into 2013 spells bad news for consumers. With SSE's price hike about to take effect and other suppliers appearing to be edging in the same direction, consumers should be bracing themselves for a round of winter price hikes.

"The fact is that the only way to genuinely freeze your energy prices is to take out a fixed price deal. I would urge anyone who is concerned about the impact of higher energy prices to look at the fixed price plans available now. There are some very competitively priced tariffs that will protect you for at least two winters and which don't carry any exit penalties. This is particularly important as it means that should prices ever fall you are free to leave and move on to a better deal. These deals are not going to hang around for long, but will give you a genuine price freeze guarantee and help you to keep a lid on your winter fuel bills."