Gas and electricity supplier E.ON is to increase prices for customers by an average of 3.7%, the energy firm announced today.
Chief executive Tony Cocker said changes announced by the Government earlier this week reduced the overall level of the rise that was necessary to cover extra costs.
The company said it was “working hard to limit the impact on its customers“ by announcing a lower average percentage rise than any other major supplier.
It will see the average variable dual fuel bill go up by 3.7% or £48, electricity only prices go up by 3.7% or £20, and gas only climb by 4.6% or £37.
The increase is the last to be announced by any of the so-called Big Six firms that dominate the energy supply market.
British Gas customers were told they faced a 9.2% tariff hike, with SSE rates going up 8.2%, npower 10.4%, and Scottish Power 8.6%.
However, they have said they will pass on savings from a shake-up on green levies announced earlier this week that it is estimated could shave £50 off bills.
Mr Cocker said: “There is no escaping the simple fact that any price rise is unwelcome news for customers.
“We know that, which is why we have held off for longer than most of our competitors and worked hard to keep our rise as low as possible.
“We have moved quickly to pass on the benefits of changes announced by the Government at the beginning of this week.
“This means we have reduced the overall level of a rise that is necessary to cover the extra costs we are seeing in some areas, as well as making sure we continue to deliver a sustainable future for all of our employees and maintain our investment in the UK.
“Whilst there can be no guarantees, the likelihood of further price rises over the next 18 months caused by an increase in the cost of social and environmental obligations has receded due to the recent action taken by the Government.”
Energy Secretary Ed Davey said the E.ON rise was “disappointing” but added that the rise was lower than it would have been because of the changes announced by the Government.
He added: “This does not let energy companies off the hook. They will keep up their efforts to help people in fuel poverty cut their bills by making sure their homes leak less heat, and they will have to be more transparent about what they’re spending on social and environmental measures.”
The changes will take effect from January 18.
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