Eon customers will see bills rise by more than £100 as the company became the fifth supplier to hike prices in the latest round.
A typical dual-fuel customer will see their annual bill rise by £113, as the electricity price increases by 9.7%, and gas by 15%.
Eon – formerly known as Powergen – now joins British Gas, Npower, EDF and Scottish Power in announcing double-digit price hikes.
The 500,000 Eon customers who are on price-protected and fixed-priced tariffs – including the Staywarm scheme for the over-60s – aren’t affected by the rises.
Eon also announced a new scheme, Price Protection Until 2009, that allows customers to cap prices until 1 October 2009, and will include price cuts if standard prices decrease in that time.
Prepayment meter customers and Age Concern customers will not see their bills increased until 1 April this year – customers aged over 70 can also apply for free energy saving measures, including cavity wall and loft insulation.
Graham Bartlett, Managing Director of Eon, said: ‘We realise the impact this price increase will have on our customers and we’re doing everything we can to minimise this. Our announcement has been made in response to sustained pressure from the wholesale market.’
The move leaves Scottish & Southern Energy as the only big supplier yet to raise prices – which it’s expected to do at the end of March.
Switch with Which?
Which? runs an impartial energy price comparison site – Switch with Which? – where you can check which supplier offers the best deal for your gas and electricity.
If you’ve never switched before and are on an uncompetitive standard plan, you could save more than £300 by switching energy suppliers.
Mike Stevenson, of Switch with Which?, said: ‘All the suppliers have increased their standard tariffs more than their online tariffs. Switching to a paperless online tariff, paying by monthly direct debit and securing a dual-fuel deal could greatly reduce your annual energy bill and minimise the impact on your pocket of all these price hikes.
‘With Scottish & Southern holding tariff changes until 31 March, now is the optimum time to switch.’