E.ON customers will see energy costs increase from April 1

Marco Green
February 13, 2019

From 1 April, the typical annual energy bill for the 1.8 million customers on its standard variable tariff (SVT) will rise by £117 - or 10 per cent.

Some E.ON customers will see an average 10.3% price increase from April 1, the supplier has confirmed, just days after Ofgem said price caps created to protect those on poor value deals would be hiked.

A spokeswoman for E.ON said, "Ofgem's energy market price cap review set out that price cap levels would increase, driven by rising wholesale and other costs". In line with that, we'll.

"We can assure these customers that they remain protected from being overcharged for their energy and that these increases are only due to actual rises in energy costs, rather than excess charges from supplier profiteering".

The prices will go up by £117, settling just by Ofgem's new £1,254 cap, burdening customers with a £211m bill.

Ofgem was told by parliament past year to set a limit after lawmakers said customers were being overcharged for electricity and gas.

Prepayment tariffs are subject to a different set of rules and a different price cap. Northern Ireland has a separate energy regulator and its own price cap.

"Standard tariffs were a bad deal at the old cap level and they'll be an even worse deal at the new level", he added.

About 11 million households are on default, or standard variable tariffs, and are set to be affected.

All the major suppliers set their standard variable tariffs at, or very close to, the current price cap, so they are expected to follow suit in time for the new cap taking effect in April.

"This hike in energy prices to the maximum level permitted by the price cap from April will be hard to stomach for more than a million households - particularly announced so quickly", Which's Alex Neill said.

Customers on prepayment meters will also face a 9% price rise, an increase of £106 annually.

Ofgem points out that, without the existence of the cap, households would have been paying more, according to its research.

Other reports by Click Lancashire

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