Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact firstname.lastname@example.org.
SOURCE E.ON UK
NOTTINGHAM, England, December 9, 2013 /PRNewswire/ --
E.ON has today announced that from 18th January 2014 its energy prices for existing standard variable dual fuel customers will be on average 3.7% higher.
For the second year running E.ON has announced an increase later than any other major supplier and has once again shown it is working hard to limit the impact on its customers by announcing a lower average percentage rise than any other major supplier.
Other key customer aspects:
Commenting on today's announcement Tony Cocker, Chief Executive, E.ON UK, 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. However, now more than ever, the help we offer our customers, in terms of advice and practical measures, is absolutely vital.
"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."
E.ON has outlined how the change in Government environmental and social schemes will be implemented, along with many other changes to make its products simpler and more comparable.
Some of these key aspects are:
Breakdown of the average dual fuel price rise announced today and effective from 18th January 2014
The different parts of a domestic bill % rise / - % fall Value The cost to buy the energy our customers need The price we pay on the energy market for buying the electricity and gas we sell to our customers. 0.9% GBP11 Getting our energy to our customers' homes These are the costs we have to pay other companies to use their pipes, wires and cables to transport electricity and gas to our customers' homes. 2.0% GBP26 Looking after our customers The cost of running our call centres, billing plus reading, fitting and maintaining meters etc. 0.7% GBP9 Delivering social obligation programmes As part of Government programmes, we work to improve poorer quality homes to make them warmer and more energy efficient. This is the area in which the Government announced recent policy changes. These changes account for the reduction shown. -1.4% -GBP18 Supporting cleaner energy This is the amount that goes towards Government funding for renewable energy, like windfarms. 1.2% GBP16 The money we earn The amount we're left with when all other costs from supplying homes with energy are taken into account. The figure shown is the amount of this price rise that will impact on the amount we earn. 0.3% GBP4 Total: Total*: 3.7%(1) GBP48
* = This rise is £30 lower than would otherwise have been the case if the Government had not made its recent announcement outlining a number of changes. These included reducing the Energy Company Obligation (ECO) scheme and a voluntary agreement by networks companies to reduce network costs which together deliver a decrease in costs to customers' bills. The other environmental levies, such as the Renewables Obligation are unaffected, which is reflected above, but the changes made in ECO will more than offset the expected rises in these items - so overall there will be a meaningful net reduction in environmental and social costs. All electricity customers will also receive a £12 rebate on top of the £30 net reduction. A total net reduction of £42 can therefore be attributed to the changes announced.
E.ON is also changing its products to make them simpler, easier to compare and compliant with Ofgem's Retail Market Review (RMR).
Major changes include:
FAQ and key details of the price rise announcement and the changes being made to move E.ON towards full Ofgem RMR compliance
Notes to editors:
1 = At current Ofgem average annual consumption of 3,300 kWh unrestricted electricity and 16,500 kWh gas, across all payment methods and regions. Includes all changes to Direct Debit, prompt payment and dual fuel discounts.
©2012 PR Newswire. All Rights Reserved.
322 Shipyard Boulevard