E.On ups electricity and gas prices

11th Jan 2011 12:04

Energy firm E.On is to raise electricity and gas prices next month, making EDF Energy the only one of the 'big six' energy suppliers not to have raised its tariffs this year.E.On will implement a 9% increase in electricity prices and a 3% rise in gas prices from 4 February. The new tariffs will mean an extra £58.40 per year for an average dual-fuel customer.E.On says the move comes as a result of rising industry costs, in particular wholesale energy prices which have increased by 35% since last spring. "It has been over two years since we last increased our prices, and, unlike other companies, we held off from increasing them during the incredibly cold temperatures we saw in late November and December," said Graham Bartlett, managing director of E.On's Energy Solutions business."But we now have no option but to make this change due to increases in the prices we pay for gas and electricity, although our customers will not actually see the increases until next month." Consumer groups have been fiercely critical of the power companies' record on prices over the past two years, saying they were quick to raise them but slow to cut tariffs when wholesale prices were falling. Scottish Power increased electricity bills by an average of 8.9% and prices for gas customers increased by an average of 2%. Scottish and Southern Energy increased domestic gas tariffs by 9.4% in December, while British Gas put gas and electricity prices up by 7% on 10 December. Npower's prices rose by 5.1% on 4 January.EDF Energy has said it will keep its prices on hold during the winter, with no change before March.Last November, industry regulator Ofgem launched an investigation into the retail power supply sector after noting an increase in profit margins for the big six suppliers.