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Co-op Energy announces 2.5% price rise from January

The Co-operative Energy firm has announced a price rise of 2.5% on average.

In an email to customers, the company said: "As winter sets in and some energy companies raise their prices by as much as 10%, we’ve got some good news for you to warm to.

"Co-operative Energy is raising its prices on 8 January…but only by 2.5% on average across all our customers."

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

Energy firm E.ON said it does not expect to have to raise prices in the next 18 months "as a result of social or environment obligations".

E.ON said in a statement that the Government's energy announcement "should mean our customers pay less next year".

An E.ON bill with money and a calculator.
E.ON said the announcement means its customers 'should pay less next year'. Credit: Rui Vieira/PA Wire

"There remains a risk, however, that increases in network charges or wholesale energy costs for example could force a price increase", it said in a statement, adding, "But the company very much hopes that situation does not occur".

E.On energy firm withdraws over-60s tariff

The StayWarm deal has been unavailable for new customers since September last year.

Tens of thousands of pensioners will face a hike in energy prices after E.ON withdrew its discount tariff for over-60s.

The StayWarm deal, which offered fixed-price energy for older customers based on their average consumption levels, will come to an end from 7 October.

The energy firm says the move has been forced by changes to the number of tariffs permitted by regulator Ofgem.

A spokesman said: "We are writing to all customers as their contracts come to an end, and where possible we are also contacting them by phone with the aim of speaking to each customer to help ensure they switch to the best product for their needs."

Read: E.ON allows customers to compare bills with neighbours

E.ON allows customers to compare bills with neighbours

Customers with one of the "Big Six" suppliers will soon be able to compare their energy use with that of their neighbours in a bid to reduce their household bills.

E.ON has teamed up with US company Opower, which works with utilities to save consumers money, to launch an online 'saving energy toolkit' to help them understand their energy use.

E.ON believes comparing energy use with your neighbours could reduce household bills. Credit: Press Association

Consumers will see their electricity and/or gas use compared with 100 anonymous E.ON customers with homes of a similar size and type, and against the most energy efficient homes in their local area.

The scheme gives households a breakdown of where and when energy is used in the home, including a "what uses most" chart that splits current usage into heating, lighting, hot water, appliances and other use.

It will also detail how energy use changes from month to month, and compare costs for the current month to the previous month, showing how bills have been affected by weather and usage.

Try the energy saving toolkit here

E.ON is latest energy giant to profit from UK's big freeze

Despite profiting in Britain, the energy giant saw overall profits plunge amid weak demand for power in Europe. Credit: Nick Potts/PA Wire

German energy giant E.ON's 9.4% winter price rise for British customers generated an extra £381 million in revenues for the company after the UK endured the worst spring temperatures in decades.

Financial results showed E.ON's revenues rose 9% to £4.47 billion during the first half of 2013, compared to the same period last year, following on from big gains made by rival energy firms.

The Dusseldorf-based company said British gas consumption over the period increased by 10% due to the freeze.

Read: British Gas profits from Britain's big freeze

Read: EDF enjoys winter boom after price hike

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