E.On hikes bills for millions of customers days after energy price cap is raised

Ofgem raised price cap last week due to higher wholesale energy costs

E.On is the first energy supplier to announce bills will rise after the energy price cap was hiked by regulator Ofgem last week.

The supplier is set to raise gas and electricity prices by 10 per cent for 1.8 million customers from 1 April.

Rik Smith, energy expert at uSwitch.com, said: “Predictably, just four days after Ofgem announced it is raising the level of the price cap, we’re seeing suppliers start to raise prices, with E.On hiking bills for customers on its standard tariff.

“E.On customers should not fall into the cap trap – a capped deal is not a good deal and standard plans are going to be more expensive in April than before the cap was introduced.”

Mr Smith added: “The limit set by the regulator effectively dictates how suppliers will purchase gas and electricity for their standard tariffs, restricting room for suppliers to differentiate themselves, and passing through cost changes swiftly.

“Standard tariffs were a bad deal at the old cap level and they’ll be an even worse deal at the new level.”

An E.On spokesperson said: “Ofgem’s energy market price cap review set out that price cap levels would increase, driven by rising wholesale and other costs. In line with that, we’ll be making changes to our standard variable tariff prices from 1 April and expect to see similar movements across the energy industry.

“Prices will not change for existing customers until then. Over the coming weeks we’ll be writing to affected customers explaining what the changes will mean for them and encouraging them to choose the best tariff for their needs.”