05 August 2011

E.On Ups the Cost of Energy

Energy provider E.On is now number 4 of the 6 biggest energy companies to hike the price of electricity and gas. The hike will see the cost of gas increase by 18% and electricity to go up by 11% from 13 September this year. The significant increase has been blamed on the 30% hike on wholesale energy earlier this year. This comes as the government released estimates that these rising prices of energy will see up to a fifth of UK households in fuel poverty. Fuel poverty occurs when more that 10% of the household income is spent on fuel to keep warm.

The 5 million customers, both domestic and business, of E.On have already seen a rise in the cost of energy this year, when the company hiked the price of electricity by 9% and gas by 3% in February. These combined increases mean that by the end of the year customers will be paying 22% more for fuel, roughly equating to an increase of £250 on every £1000 spent, a significant hike.

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