E.ON has become the latest of the big six energy companies to raise the cost of gas and electricity.
From September 13th, the standard price of gas will go up by 18 per cent and the price rise for electricity will increase by 11 per cent.
E.ON is the fourth of the big six suppliers to announce massive price hikes for both gas and electricity. E.ON follows the lead of Scottish Power, British Gas and Scottish & Southern Energy in announcing price rises over the summer.
Graham Bartlett, Managing Director of E.ON said in a message to customers on the companies’ website: “Wholesale prices throughout the industry have soared. (According to Ofgem, they’re up by some 30% since last winter.) At the same time, our costs for using the infrastructure that gets the energy to your home have gone up too.”
The price hikes from the big energy companies follow a series of financial results that show high profits and hit consumers when disposable income is stretched through high inflation and low wage increase settlements.
Scott Byrom, energy channel manager at moneysupermarket.com, said: “This price increase will see £132 added to the average cost of a yearly bill - a blow to anyone languishing on a standard tariff.
"Bill payers need to strike back, or they'll continue to pay the price. I advise people to take action now and move on to the best fixed priced energy deal for their usage level and area they live in.
"E.ON customers changing to the best priced fixed tariff today could see average annual savings of around £246.”
The best way to keep energy prices low is to use as little as possible. If you insulate your home you could save money because without insulation you can lose up to 25 per cent of heat through your roof and up to 33 per cent through your walls.
Using an energy monitor and the associated software can enable you to track your energy usage and make amendments to use that can save you money.
Use the Myfinances.co.uk comparison tables to find the best deal on gas and electricity.