Credit, Collections & Insolvency News
Gillian Guy, Chief Executive at Citizens Advice, said “After raising prices by stealth earlier in the year, E.ON’s decision to increase the price of its standard variable tariff (SVT) is disappointing, to say the least. Those people most likely to be on SVTs, and hit by this increase, include the elderly, the least well-off and those with disabilities. These groups are the least able to afford two price hikes in a year. The government’s proposed price cap should deliver much-needed protections for energy customers in the future.”
Peter Earl, Head of Energy at Compare The Market, said “According to E.ON, it lost around 200,000 customers in the UK in 2017 following a string of price hikes last year. It now seems prepared to lose some more! Eon, like the rest of the Big Six, has not learned the lesson that unfair energy price hikes are progressively not being tolerated by customers. These increases in energy costs for Eon customers on Standard Variable Tariffs will most likely drive thousands of customers to switch to a cheaper deal. The average saving for someone on a standard variable rate currently stands at around £350 – a huge windfall for those who take the time to shop around for a better deal.”
Georgie Frost, consumer advocate at GoCompare Energy, said “E.ON energy customers on the supplier’s standard variable tariff (SVT) are in for an inflation-busting hike to their energy bills, just in time for the autumn, when lighting and heating use starts to increase. As if it wasn’t bad enough that they already pay more for their gas and electricity than anyone except those on a pre-pay or safe-guard tariff, around 1.4 million E.ON customers will see their annual energy bills increase by an average of 4.8%, or £55, for customers on the dual fuel tariff; 6.2%, or £36 for electricity-only customers; and 3.3%, or £19, for gas-only customers.”
“Although E.ON claim that the number of customers on their standard variable tariffs has fallen by 21% over the last 18 months, that still means around 1.4 million customers could be forking out a collective £78m* a year extra for their energy, unless they switch.