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Andrew leads our Operational Team and is our expert when it comes to all the ins and outs of car hire excess insurance.
The last of the big six energy companies, E.On announced their price rises today. The increases will take place on 18th January 2013. Gas prices rise by an average of 9.4% and electricity by an average of 7.7%.
In common with the other energy companies, E.On blame the increase on wholesale costs, rises in network costs and Government social schemes like providing subsidised insulation. They also say that they are incurring additional costs by increasing the proportion of energy they buy from renewable sources.
E.On also said that "next year the Government's Carbon Price Floor will add another charge to electricity bills which we and others regard as simply a tax.”
Audrey Gallacher, Director of Energy at Consumer Focus, said: "E.ON is the last major energy supplier to announce winter price rises. While today's announcement may not have been a surprise for E.ON's millions of UK customers, higher energy prices will be, yet again, the greatest concern for many households this winter.
"Most industries will pass on rises in costs, but given the low levels of confidence consumers need to be reassured that retail bills, wholesale costs and company profits are in balance. It is a complex picture, but bill payers need to know that wholesale prices and other costs have increased enough to justify these rises. As it stands the pressures on price are just too opaque and contested to provide confidence.”
Having just been fined for overcharging customers after their last price rise, we can expect E.On to be very careful dealing with customers wishing to change supplier as a result of this change.
Under Ofgem rules, suppliers have to give customers 30 days notice of price increases. If you chose to leave in this time you should not incur an exit fee or the higher charges even if the switch happens after the price increase.
Although changes to standard tariff rates are quite rare, there are many more changes to discounted and fixed rate tariffs. We normally see fixed rate tariffs get withdrawn and replaced by higher priced variants before a rise in a standard tariff. With continual movement in the marketplace, it's worth checking regularly to make sure you are on the best Gas and Electricity tariff available right now. Change supplier with us before 31st December 2012 and we'll give you £20 cashback.