German utility E.ON AG (EOAN.XE) said Monday it will raise retail power prices, citing rising costs of subsidizing electricity produced from renewable energy sources.
German utility E.ON AG (EOAN.XE) said Monday it will raise retail power prices, citing rising costs of subsidizing electricity produced from renewable energy sources.

Power prices will rise from March and May despite lower operating costs and decreased energy procurement costs, six of the company's regional retail units said in separate statements.

E.ON's plans to increase power prices come after scores of energy providers raised prices for end-customers at the turn of the year. According to online consumer portals Verivox and Check24, more than 600 utilities have increased power prices from Jan. 1.

In statements, three of E.ON's regional suppliers said they would increase retail power prices from March by up to 6.6%. A further three regional suppliers of Germany's largest utility by market value said they will raise end customer electricity prices by up to 4.9% from May.

E.ON's main domestic competitors RWE AG (RWE.XE), EnBW Energie Baden-Wuerttemberg AG (EBK.XE) and Vattenfall Europe AG have raised retail power prices from the beginning of 2011, saying the increases are due to higher costs for renewable energies that in many cases outweigh lower procurement costs for fuel of conventional power plants.

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