Energy firm E.ON raises prices

Energy supplier E.ON is to increase prices by 3.7% for average dual fuel bill (an extra £48) and gas by 4.6% (£37) from January 18.

Davey: E.ON price rises announcement 'disappointing'

Energy Secretary Edward Davey called E.ON's price rises announcement "disappointing news".

Bur Mr Davey stressed:

This rise is ... lower than it would have been as a result of Government action to reduce the impact of price rises on consumers.

As part of their announcement today, E.ON have confirmed they will pass on these savings to their customers.

This does not let energy companies off the hook.

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No. 10: It is for E.ON to explain timing of its decisions

Stock picture of a gas hob lit.
E.ON is to increase prices by 3.7% for average dual fuel bill and gas by 4.6% from January 18. Credit: Gareth Fuller/PA Wire

Asked about the timing of E.ON's price rises announcement, which came amid media focus on the death of Nelson Mandela and the devastating storms across the UK, Downing Street said, "It is for them to explain their decisions."

Read: Energy firm E.ON raises prices

E.ON customers' dual fuel energy bills to rise by 3.7%

E.ON has announced its customers' dual fuel energy bills will increase by an average of 3.7% from January 18.

The company said that means the average variable dual fuel bill will go up by £48, electricity only prices will increase by 3.7% or £20, and gas only bills will climb by 4.6% or £37.

General view of an E.ON energy bill and some pound coins.
Energy firm E.ON said the price increases will come into force on January 18. Credit: Rui Vieira/PA Wire

Chief executive Tony Cocker said changes announced by the Government earlier this week reduced the overall level of the rise that was necessary to cover extra costs.

The energy firm said it was "working hard to limit the impact on its customers" by announcing a lower average percentage rise than any other major supplier.

Read: Energy firm E.ON raises prices

E.ON previously said it did not expect to raise prices

Earlier this week, E.ON said it did not expect to have to raise prices in the next 18 months "as a result of social or environment obligations".

General view of E.ON energy bills
E.ON had said it did not expect to have to raise prices in the next 18 months. Credit: Rui Vieira/PA Wire

But E.ON also warned, "There remains a risk, however, that increases in network charges or wholesale energy costs for example could force a price increase".

The announcement followed the Government's shake-up of green levies on Monday.

Read: E.ON 'does not expect to raise prices in the next 18 months'

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