ENERGY supplier E.On is to increase its standard variable dual fuel prices by an average of 8.8% from April 26.
The energy giant said its standard electricity prices will increase by an average of 13.8% and standard gas prices will rise by an average of 3.8% ‘due in large part to increasing policy costs and other costs it doesn’t control’.
Around 2.5 million of E.On’s residential customers — 62% — will ‘potentially’ see an increase if they take no action before April 26, the company said.
E.On said the hike was ‘largely due’ to an increase of around 36% in the cost of supporting various social and environmental programmes, such as the Renewables Obligation (RO) and Electricity Market Reform (EMR).
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.
He added: ‘We will continue to work to make sure our customers are on the best tariff for them; for example, we will be sending more than three million letters to customers this month with personalised savings messages making it clear how easy it is to swap to another tariff that might offer cheaper prices.
E.On’s announcement follows a spate of energy price rises in recent months.
Npower, EDF and Scottish Power are among those to have ramped up bills, with many blaming rising wholesale costs.
Co-operative Energy is also increasing the cost of its standard variable tariff by an average of 5%, a change that will affect around 96,000 customers when it comes in from April 1.
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.’