Millions face ‘monster’ rise in energy prices
MILLIONS of households will be hit by “monstrous” rises in energy costs next month with annual bills set to rocket by up to £445, watchdogs have warned.
Gas and electricity costs will soar by huge amounts when 25 fixed deals run out at the end of March.
Consumers are being advised to switch suppliers to avoid being stung.
Some Npower customers face a colossal hike of 60 per cent, which will push their dual fuel bills up by almost £450.
EDF Energy tariffs will rise 31 per cent, pushing bills from £824 to £1,082.
And E.ON has announced that customers will pay 15 per cent more for electricity and 4.2 per cent more for gas.
Last night campaigners accused suppliers of being greedy and dealing hard-up families a “bitter blow” by adding £530million to the UK’s power bill.
Energyhelpline director Mark Todd said: “Price rises are going to be enormous – for example some Npower customers face an increase that will push bills from £740 to £1,187. To add insult to injury, the news comes as E.ON announces a monstrous price rise.
“These changes will hit customers all over the UK, with an average price rise of around £215 across 10 suppliers.”
Peter Earl, head of energy at price comparison website Comparethemarket, urged customers to change companies now to avoid being hit with an expensive shock later.
He said: “The weather may be getting warmer but with further price hikes likely and many households on uncompetitive tariffs, consumers should not turn off to the fact that switching supplier saves on average more than £200.
“Our research indicates that the big six were actually big losers in February, when it comes to customer retention, with 69 per cent of switches going away from the largest players.”
E.ON will become the fourth of the “big six” suppliers to increase charges following Npower, Scottish Power and EDF Energy later this month.
About 2.5 million customers will be hit by the rise which the firm has blamed partly on “costs it doesn’t control”.
E.ON’s chief executive Tony Cocker said: “It is an announcement we never want to make.
“We will be sending more than three million letters to customers this month with personalised messages making it clear how easy it is to swap to another tariff that might offer cheaper prices.
“We will also be working to contact a number of potentially vulnerable customers currently on our standard variable tariff with a personalised quote for an exclusive product.”
Emma Bush, from price comparison specialist uSwitch, welcomed the firm reaching out to vulnerable people.
But she added: “This is a crippling blow to customers and piles further pressure on household budgets, many of which are already at tipping point.”
Energy UK said: “With 50 suppliers active in the market, it is in the industry’s interest to keep prices competitive to attract and retain customers.
“How suppliers deal with rising costs is an issue for the individual company and their pricing strategy.”