E.ON to increase SVTs

E.ON to increase SVTs

E.ON has announced it will increase its standard variable tariffs (SVTs) by an average of 4.8% for dual users, as a result of a “significant rise in cost of wholesale energy”, just months after its Big Six competitors also hiked up energy bills.

Customers on its E.ON EnergyPlan electricity only scheme will see a 6.2% increase in prices while gas only customers will see a 3.3% rise.

The Big Six firm has attributed the hike in energy bills to a 22% jump in wholesale energy costs since March 2018 and the cost of policies, such as the Renewables Obligation.

The move comes after fellow Big Six energy firms Npower, EDF and British Gas also increased their prices.

Michael Lewis, chief executive of E.ON UK, said: “We had hoped that, by making the structural changes we made earlier this year, impacting bills by around £22 a year, we could avoid an increase in our unit price.

“However, as was seen in relation to the increases in the regulated prepayment cap in April, a number of costs have risen quite sharply and in particular we’ve experienced a hike in the price we have to pay for the energy our customers need, partly driven by the Beast from the East and extreme weather conditions experienced earlier this year. Through advanced purchases we had been able to shield our customers from some, but not all, of this impact.

“We’ll continue proactively to tell customers about the different tariffs on offer and encourage them to move to those tariffs, as well as promoting the different services that can potentially help bring their bills down such as a smart meter, a more efficient boiler or better insulation.”

In February, the UK government introduced legislation that will allow energy regulator Ofgem to put a price cap on SVTs – putting an end to “rip off” energy bills.

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