E.On firm raises prices
February 19, 2008
Just after the Bank of England announced the latest interest rate cut last week another of the UK’s energy giants announced that it was hiking up the cost of gas and electricity usage, which means that many homeowners that may have seen their payments reduced by the 0.25% interest rate cut will not also see their cost of their energy usage rise, counteracting the benefit that they receive from lower repayments. E.On is the latest of the energy giants to announce rises, which price hikes already having been put in place by British Gas, Npower, EDF and Scottish Power.
Like the other energy companies E.On, which was formerly known as Powergen, has stated that the price rise has had to come into force because of the increasing cost of wholesale energy. E.On will be raising prices on gas usage by 15% and the cost of electricity usage will go up by 9.7%. However, although the new prices have come into force already, just days after the announcement was made, officials from the energy firm have stated that there are nearly 700,000 more vulnerable customers that will not be affected by the new pricing structure until April.
In a recent statement E.On officials stated: “We realise the impact this price increase will have on our customers and we’re doing everything we can to minimise this. Our announcement has been made in response to sustained pressures from the wholesale market. We are offering a new product to allow more customers to join the half a million already benefiting from protected prices, while also helping those customers who are most in need.”
One group of Mps has expressed concern over rising property prices, stating: “The continuing controversy over energy prices is an issue that demands to be addressed. It is a complex but vital question and one that affects everyone in the country, individual consumers and households, small businesses and major energy users alike.”
Tom Smith
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