E.ON puts energy prices up

E.ON has become the third major energy supplier to announce a second price rise this year. The giant is putting its prices up again by 26% or £167 for gas and 16% or £67 for electricity coming into effect on 22nd August. It means the average E.ON dual fuel bill will go up from £1,063 to £1,297 - an increase of £234. However, in total, customers will have seen an increase of 42% or £384 since the beginning of the year when the average E.ON dual fuel bill stood at £913.

The news comes on the same day that consumers were warned that UK wholesale prices have soared again after a key gas pipeline was shut. Experts fear that this could put further pressure on household gas prices.

Today's price rise by EON follows a similar move by EDF Energy and British Gas. EDF Energy increased its prices by 22% or £143 for gas and 17% or £65 for electricity on 25th July, while British Gas announced 35% or £230 for gas and 9% or £37 for electricity from 30th July. British Gas also confirmed that customers on its standard plans would not see any further price increases this year. uSwitch.com calculates that these three price hikes will have pushed approximately 893,000 households into fuel poverty, taking the total from 4.5 million to 5.4 million.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Soaring energy bills pose a huge threat to our standard of living - gas and electricity are essential commodities which have now become a luxury that many can no longer afford.

"The Government needs to provide a strategic and regulatory environment to ensure that the lights stay on at an affordable price. This can only be achieved by working with the energy companies to facilitate an environment which will encourage them to plan and invest for our country's future energy needs. But, the biggest question now is what is going to happen to household energy bills in the future. Today's news of a key gas pipeline being shut and wholesale gas prices increasing as a result does not augur well for consumers.

"Unfortunately, all the evidence points towards a painstakingly slow process and a steady climb upwards for energy bills - this will be cold comfort to households this winter. Around a third of our power stations will need to be replaced by 2020 at a cost of about £100 billion, plus suppliers will need to contend with increased environmental levies. This money will have to come from somewhere and will ultimately be reflected in higher bills. It looks like high energy prices are here to stay.

"Consumers are going to have to adjust quickly and there are two key steps to this - making sure we pay the lowest possible price for our energy and learning to use less of it. Consumers should look to pay by direct debit and move to an online plan where possible to get the best available prices. I would also urge people to contact their suppliers to find out what help they can get towards making their home more energy efficient - we are all paying an extra £39 a year on our bills towards suppliers' energy efficiency schemes so why not try to get something back?"