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E.on Raises Cost Of Energy Bills

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http://www.bbc.co.uk/news/business-14417391

E.On raises cost of energy bills

E.On has become the fourth of the big six energy companies to put up its gas and electricity prices.

Its gas tariffs will rise by 18% from 13 September, while electricity bills will go up by 11%.

Like the other firms, E.On blamed the increases on the 30% rise in wholesale energy prices this year.

The government recently estimated that rising fuel prices meant a fifth of UK households now had to spend at least 10% of their incomes on keeping warm.

"Uncertain times have had a huge effect on wholesale prices, with events in Japan and Libya all having a dramatic effect on gas and power prices in a relatively short period of time," said Graham Bartlett of E.On.

Second increase

E.On has five million domestic and business customers in the UK. They saw a 9% increase in electricity prices and a 3% rise in gas prices on 4 February 2011.

The price comparison service Uswitch said this meant the company's bills had risen by £232 or 22% this year, pushing them up from £1,061 a year to £1,293.

"This compares with increases of £239 or 21% seen by ScottishPower customers, £256 or 25% seen by British Gas customers and £227 or 22% seen by SSE's customers, all within the space of a year," said Uswitch.

Paul Green, of Energyhelpline, said: "Even though this price rise was fairly predictable, the scale of it will stun E.On customers."

"It's now surely only a matter of time before EDF and Npower fall into line," he warned.

Mike O'Connor, the chief executive of Consumer Focus, demanded action from the energy regulator Ofgem.

"Wholesale costs are around a third lower than their 2008 peak, yet consumer prices have reached an all-time high," he said.

"Ofgem has said it is prepared to refer the energy market to the Competition Commission if necessary.

"That is welcome, but the regulator must be prepared to act if it can't say for certain whether prices are fair," he added.

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I'm just pleased there is no inflation to fret over :rolleyes:

Inflation + feed in tariffs + other government green taxes (are we still subsidising energy efficient light-bulbs through our bills?) ;)

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Mike O'Connor, the chief executive of Consumer Focus, demanded action from the energy regulator Ofgem.

"Wholesale costs are around a third lower than their 2008 peak, yet consumer prices have reached an all-time high," he said.

Criminal cartels supported by regulator.

Same as the banks/FSA scam.

Who knew.

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Like the other firms, E.On blamed the increases on the 30% rise in wholesale energy prices this year.

The shameful blatant lies are almost laughable.

There was an earlier thread about how oil prices are now no higher than the start of this year (and trending down).

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Ok, lets take a look at it..

EONs (UK) profits were 760 million last year.

They have roughly a 17% market share of the residential electricity market (not sure about gas).

£760m / (17%of) 17m households = £263 per houshold.

However, they also have a commercial / business side to the business which is probably at least as big.

So call that £132 per household profit.

If the average bill is over £1000 per year that doesn't sound like an extortionate profit margin.

Can anyone improve on my calculations?

Edited by libspero

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Ok, lets take a look at it..

EONs (UK) profits were 760 million last year.

They have roughly a 17% market share of the residential electricity market (not sure about gas).

£760m / (17%of) 17m households = £263 per houshold.

However, they also have a commercial / business side to the business which is probably at least as big.

So call that £132 per household profit.

If the average bill is over £1000 per year that doesn't sound like an extortionate profit margin.

Can anyone improve on my calculations?

What are management awarding themselves?

How much of the profits are being hidden by various tax avoidance schemes?

Unfortunately, this is the kind of thing that it would take an investigative journalist who knew what he was doing a significant amount of time.

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Ok, lets take a look at it..

EONs (UK) profits were 760 million last year.

They have roughly a 17% market share of the residential electricity market (not sure about gas).

£760m / (17%of) 17m households = £263 per houshold.

However, they also have a commercial / business side to the business which is probably at least as big.

So call that £132 per household profit.

If the average bill is over £1000 per year that doesn't sound like an extortionate profit margin.

Can anyone improve on my calculations?

I very very much doubt that that was the real EON uk profit level. The utilities buy fuel internally at inflated prices, and use lots of tricks to hide/shift profits from country to country. We won't know their true profits without an opening up of their books.

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It's worth noting that wholesale energy prices are actually at a year low:

http://www.thisismoney.co.uk/money/bills/article-2023723/Wholesale-gas-prices-year-low-day-E-ON-puts-bills.html?ito=feeds-newsxml

http://www.mirror.co.uk/news/latest/2011/08/07/wholesale-gas-prices-at-year-low-115875-23327363/

But gas has fallen by 22% and electricity by 19% since their March peaks amid the slowdown in the global economy.

The companies buy their wholesale gas and power a long time in advance but the price of buying ahead is also at five-month lows and still falling.

Omar Rahim, of Energy Trader Daily, said: "The wholesale electricity and gas markets have fallen consistently since March, this is not something that has happened suddenly.

"It's ironic that on a day when suppliers are again raising their prices, gas prices are at a year low and electricity prices are also at multi-month lows."

I am going to switch to a fix with a small supplier (probably Ovo) before my supplier's price hike in September. See this page for further details of price hikes:

http://www.ukpower.co.uk/home_energy/price_updates

Q

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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