Credit, collections & insolvency news
E.ON has announced an 8.8% dual-fuel price increase from the end of April 2017, it will increase its standard variable dual fuel prices from Wednesday 26th April 2017. It is thought around 2.5 million customers will be hit by the price rise.
The dual fuel price change stems largely from an increase in costs, due mainly to the rise in non-energy parts of the bill such as social and environmental schemes, which support renewable energy and help customers use less energy. E.ON has been able to partially offset some of these increases through a reduction in the cost of energy purchased on the wholesale market and some other factors.
Commenting on the changes Tony Cocker, Chief Executive of E.ON UK said “This is the first time since January 2014 that we have increased our standard variable prices. It is an announcement we never want to make but is due in large part to the fact that many of the costs we don’t directly control, such as policies including EMR, RO and the Energy Company Obligation (ECO), which are paid for via people’s energy bills, are increasing. We have been able to partially offset some of these rises through our wholesale hedging policy and other means, but we do have to make an increase.”
Responding to news the Citizens Advice says it is loyal customers who will be most affected by the price rise. Citizens Advice Chief Executive Gillian Guy, said “Loyal customers will bear the brunt of yet another steep price rise from a large energy firm. Millions of E.ON customers on the standard variable tariff could find their bills have been pushed up further after years of paying more than other customers for the same gas and electricity.
“It is positive that E.ON will identify some of its vulnerable customers on the standard variable tariff and make it easier for them to get the cheapest deal on offer. But action is needed to lower the bills for loyal customers of all suppliers. The government is right to say it will set right markets that don’t work for consumers. Extending the prepayment meter cap to standard variable tariff customers who are on the Warm Homes Discount would be one way to help some of those who can least afford rising bills.”