No end in sight for high energy prices as E.ON and Scottish & Southern announce rises

21 August 2008 / by Rebecca Sargent
According to experts it was only a matter of time before other leading energy companies followed British Gas and EDF Energy in hiking gas and electricity prices.

Just weeks since the last round of increases caused panic and a rise in the number of people switching gas and electricity providers, E.ON has followed suit with its second rise this year.

The average household bill with E.ON will now cost £1,297, as it hikes its gas prices by 26 per cent and electricity by 16 per cent, effective from tomorrow. According to E-on, a 51 per cent rise in wholesale costs has forced it to pass the increase on to its residential customers.

Speaking of the energy price hikes, managing director at E.ON's retail business, Graham Bartlett, said: "I'm very aware of the effect that today's announcement will have on our customers and I recognise that this is a very tough time for everyone. This was not an easy decision to make and we've tried to keep these increases as low as possible."

The news comes on the same day that consumers have been warned that they face an increase in energy price rises, as wholesale prices look set to rise further as a result of a North Sea leakage.

Commenting on the future of gas and electricity prices, director of consumer policy at, Ann Robinson, said: "Soaring energy bills pose a huge threat to our standard of living – gas and electricity are essential commodities which have now become a luxury that many can no longer afford."

According to Mrs Robinson, the news calls for action from the Government.: "The Government needs to provide a strategic and regulatory environment to ensure that the lights stay on at an affordable price." She said. "This can be achieved by working with the energy companies to facilitate an environment which will encourage them to plan and invest for our country's future energy needs."

Following the price hike from E.ON earlier today, Scottish and Southern Energy have followed suit to become the fourth energy provider to hike its prices for the second time this year. It's gas will go up 29 per cent and it's electricity by 19 per cent, an average increase in cost for each household of £181 and £78 respectively, effective from August 25.

Mrs Robinson advised concerned consumers to compare gas and electricity suppliers, cut down on energy use, and pay by direct debit in order to combat the impending price hikes as much as possible.

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