- E.ON's 9% energy tariff brings annual gas and electricity cost to £1,370
- Firm is last of the 'bix six' suppliers to raise prices this winter
- Find the cheapest gas and electricity in your area with our energy widget
By Tara Evans
Published: 06:13 EST, 19 January 2013 | Updated: 10:04 EST, 19 January 2013>
As snow settles across the country today four million households will feel an extra chill as a price hike from supplier E.ON kicks in.
E.ON’s nine per cent energy tariff increase adds around £110 a year to bills – bringing the average annual gas and electricity cost up to £1,370 for its customers. It is the last of the 'big six' suppliers to raise prices this winter.
The hikes of 7.7 per cent to electricity charges and 9.4 per cent to gas charges were announced more than a month ago but will come as a blow to householders turning up thermostats to battle sub-zero temperatures across the UK.
Scroll down for video
Terrible timing: As millions of households turn up their thermostats to battle sub-zero temperatures across the UK, E.ON has introduced a nine per cent energy tariff
Frozen: A woman walks her dog past a snow covered thatched cottage in North Yorkshire yesterday
Additional heating in the freezing temperatures is already expected to add up to £7 a week to bills, warned experts earlier this week, and that's before higher prices are taken into account.
- >Britain's 4.2 million self-employed workers 'face tax rise... >EXCLUSIVE: How 75% of petrol stations have closed in 40...
- >Refugee Camp Heathrow: Snow cancels 100 flights as...
Share this articleShare
It costs £3 a day, on average, to heat a home, but during cold weather this can easily rise by £1 a day as people push up thermostats or leave the heating on for longer, according to figures from price comparison website, uSwitch.com.
E.ON announced its price rise last month following similar confirmations from rivals SSE, British Gas, npower, Scottish Power and EDF.
Having pledged in May to keep residential energy prices on hold during 2012, E.ON blamed the new year hikes on increased costs, including the price of energy on the wholesale market and regulatory costs.
Comparison website Confused.com said that the recent increases have widened the gap between the cheapest tariffs on the market and the standard deals being offered by the big six companies to more than £300 a year.
Two years ago, customers on standard dual fuel tariffs were paying up to 23 per cent or £221 a year more than those on the cheapest deals, but the latest round of hikes has increased the price gap to almost a third (30 per cent) or £312, the website said.
The energy price gap was calculated by working out the cost for an average dual fuel user if they were on the cheapest tariff on the market and paying by monthly direct debit.
Life goes on: People in Queens Square, Bristol, attempt to go about their day as usual despite the severe weather and freezing temperatures
Last week experts warned consumers that small energy firms, such as First Utility and Co-operative Energy has some of the cheapest tariffs on the market and should not be ignored in favour of the big six energy firms.
Yesterday, one of the big energy suppliers, SSE, fought back by launching new variable energy tariff pushing its way to the top of the best buy table.
It’s Discount Energy Bonus April 2015, costs £1,134 a year, making it £16 cheaper than First Utility’s iSave v14 at £1,150 a year.
The new plan is nearly £50 cheaper than the cheapest big six plan, EDF Energy’s Blue + Price Promise, costing £1,182 a year. However, this is a fixed price plan offering protection on costs until the end of June 2014, whereas the plan from SSE is variable.
Best buy energy plans: SSE's new tariff pushes it to the top of the table with small suppliers, First Utility and Co-operative Energy snapping at its heels.
According to research by MoneySupermarket.com, households typically use around 40 per cent of their annual energy consumption during the winter months, pushing the next quarterly bill for many households above £500.
The comparison website also conducted new research that showed large regional differences in the money that can be saved by switching.
It found that people living in the South East could potentially make the biggest savings. People living in the South East who have never switched could save £385 by moving from their traditional energy supplier to the cheapest deal.
Bill payers in North Wales and Liverpool who are still customers of their original energy supplier were found to have the highest typical annual bills of £1,444 for their gas and electricity and they could save around £306 by switching, MoneySupermarket found.
Soaring energy prices have been a major driver of inflation which has squeezed households in recent months.
Pushing through: A cyclist uses a snow covered cycle path in Bristol, as snow shut roads and disrupted train travel today
The Fuel Poverty Advisory Group (FPAG) recently estimated that 300,000 more homes were pushed into fuel poverty over Christmas, meaning these families are spending more than 10 per cent of their incomes on keeping their homes warm.
The increases and freezing temperatures have put an even greater emphasis on households to switch energy suppliers and seek out the best deals.
Kate Rose, head of energy at Confused.com, said: 'There are still many households who have never switched supplier and could therefore be paying over £300 a year more, which is a staggering 30 per cent more than people that have shopped around or switched to one of the cheapest tariffs on the market.
'With temperatures dropping, increasing energy prices continue to be a significant worry to millions of households.'
VIDEO: White delight: Kids take part in snow ball fights in Bristol
Source : http://www.dailymail.co.uk/news/article-2264927/E-ON-price-hike-swipe-110-year-million-households-kicks-snow-hits-UK.html1826