Monday 11 February 2019
E.ON hikes energy bills by 10% after Ofgem’s price cap limit
E.ON has become the first energy supplier to announce an increase in prices under Ofgem’s latest price cap limit.
The Big Six company is raising its standard variable tariff by 10%, which will come into effect from 1st April 2019 in line with the limit.
Around 1.8 million customers will see an increase of £117 on their energy bills - rising from £1,137 to £1,254 a year.
Customers on prepayment meters will also face a 9% price rise, an increase of £106 annually.
It follows Ofgem’s decision last week to increase the level of the price cap for standard variable tariffs and prepayment customers to 1,254 and £1,242 respectively.
E.ON said around £74 of the increase in its default tariff is due to higher wholesale energy costs, which make up more than a third - £521 - of the overall cap.
Higher wholesale energy costs have also pushed the level of the prepayment tariff, it adds.
A spokesperson from E.ON said: "Ofgem's energy market price cap review set out that price cap levels would increase, driven by rising wholesale costs. In line with that, we'll be making changes to our standard variable tariff prices from 1st April and expect to see similar movements across the energy industry. Prices will not change for existing customers until then.
"Over the coming weeks, we'll be writing to affected customers explaining what the changes will mean for them and encouraging them to choose the best tariff for their needs."
E.ON’s standard tariff is expected to be £286 more expensive than the cheapest deal currently on the market.
