Millions of Customers Affected by Latest Energy Price Hikes
Nearly 4.5 million customers are to see big hikes in their energy bills. This is thanks to incoming energy price hikes by two of the Big Six energy suppliers.
All members of the group of energy suppliers that enjoy the largest share of the market in the UK have raised prices recently. With the exception of SSE who have been expected to raise theirs for some time. EON is embarking on its second price hike of the year. Around 2.4 million households are believed to be affected by SSE’s rise. While a further two million will be affected by the rise from E.ON.
SSE Price Hike Due in July
Customers supplied by SSE will see their bills rising by an average of £76 per year, which works out at 6.7% for households on a dual fuel tariff. Individually, gas prices will increase by 5.7% and electricity prices will increase by 7.7%, which will ultimately translate into an average rise of about £1.50 per week for households buying both electricity and gas.
The date of the price rise has been set for July 11, while SSE’s Chief Commercial Officer of Energy Services, Stephen Forbes, attempted to soothe their customers’ concerns by expressing the supplier’s regret at the price hikes. “We deeply regret having to raise prices,” said Mr Forbes.
“[We] have worked hard to withstand the increasing costs that are largely outside our control by reducing our own internal costs. However, as we’ve seen with recent adjustments to Ofgem’s price caps, the cost of supplying energy is increasing and this ultimately impacts the prices we’re able to offer customers.”
EON Price Hike Due in August
The two million customers affected by EON’s energy price hikes will see prices rise a further 4.8%, after EON had already raised their prices just three months ago. They become the first of the Big Six energy suppliers to raise their prices twice this year.
The previous price rise in March added up to £50 onto their customers’ bills, although it was described as a stealth price rise as it was due to the quiet removal of certain discounts on dual fuel and paperless tariffs. Now their normal dual fuel customers will see an average of £55 added to their annual bills from August 16.
To explain the price hike, EON cited the higher cost of wholesale energy, which it claims have increased by over a fifth since their last ‘big’ price hike in 2017. EON’s Chief Executive for the UK, Michael Lewis, explained further by saying, “A number of costs have risen quite sharply and in particular we’ve experienced a hike in the price we have to pay for the energy our customers need, partly driven by the beast from the east and extreme weather conditions experienced earlier this year.”
Thankfully, it is believed by industry experts that EON’s second energy price hike of the year will not initiate additional price rises from the other members of the Big Six, with SSE’s July price hike being their first of the year.
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