Electricity prices will rise on average by 13.8%, and gas by 3.8%. EON said that 2.5 million customers would be affected by the increases, which come into effect on 26 April 2017. The average bill will rise by £97 a year. However it is the first such increase in three years.
EON blamed the social and environmental schemes which support renewable energy, but which customers have to pay for through their bills.
Wholesale energy costs had actually come down, it said, thanks to its hedging policy.
This announcement was criticised by some energy bill experts.
“E.On delivered yet another bitter blow to households this morning as it announced a monstrous price rise,” said Mark Todd the founder of Energyhelpline. “This massive increase will be very tough for customers to swallow and once again it’s loyal standard rate customers who are hit the hardest.”
Three other big power companies have announced price rises this year, while British Gas has announced a freeze until August.
- Scottish Power’s standard electricity prices will increase by an average of 10.8% and gas prices by 4.7% on 31 March.
- Npower is raising its standard tariff electricity prices by 15% from 16 March, and gas prices by 4.8%
- EDF Energy cut its gas prices by 5.2% in January, but its electricity prices rose by 8.4% on 1 March
- British Gas is freezing its gas and electricity prices until August
|The Big Six – 2017 price rises|
|Npower||+ 15% from 16 March||+ 4.8% from 16 March|
|Scottish Power||+ 10.8% from 31 March||+ 4.7% from 31 March|
|EDF||+ 8.4% from 1 March||– 5.2% from January|
|E.On||+ 13.8% from 26 April||+ 3.8% from 26 April|
|SSE||price freeze until 1 April||price freeze until 1 April|
|British Gas||price freeze until August||price freeze until August|