E.ON raises energy bills by average of 3.7pc

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Gas and electricity supplier E.ON is to increase prices for customers by an average of 3.7 per cent, the energy firm announced today.

Chief executive Tony Cocker said changes announced by the Government earlier this week reduced the overall level of the rise that was necessary to cover extra costs.

The company said it was “working hard to limit the impact on its customers” by announcing a lower average percentage rise than any other major supplier.

It will see the average variable dual fuel bill go up by 3.7 per cent or £48, electricity only prices go up by 3.7 per cent or £20, and gas only climb by 4.6 per cent or £37. The changes will take effect from January 18.

Mr Cocker said: “There is no escaping the simple fact that any price rise is unwelcome news for customers.

“We know that, which is why we have held off for longer than most of our competitors and worked hard to keep our rise as low as possible.

“We have moved quickly to pass on the benefits of changes announced by the Government at the beginning of this week.

“Whilst there can be no guarantees, the likelihood of further price rises over the next 18 months caused by an increase in the cost of social and environmental obligations has receded due to the recent action taken by the Government.”

The increase is the last to be announced by any of the so-called Big Six firms that dominate the energy supply market.

British Gas customers were told they faced a 9.2 per cent tariff hike, with SSE rates going up 8.2 per cent, npower 10.4 per cent and ScottishPower 8.6 per cent.

However, they have said they will pass on savings from a shake-up on green levies announced earlier this week that it is estimated could shave £50 off bills.

EDF has announced a 3.9 per cent rise, saying it was holding back the full impact of rising costs in anticipation of the Government’s changes.