E.ON UK followed the example of five other big energy
suppliers in the country and raised prices for its electricity and gas.
Overall, the six companies have increased prices by an average 8.4%.for both
gas and electricity.
E.ON UK, the local unit of Germany's E.ON AG , said electricity prices
would rise 7.7% and natural gas 9.4%, effective Jan. 18.
In October, ScottishPower, a unit of Iberdrola SA , announced a 7%
average price increase across gas and electricity, Centrica PLC's British Gas a 6% rise, and RWE AG's nPower a rise of around 9%. Electricite
de France SA's EDF Energy has announced price rises of 10.8% on
average. In August, SSE PLC became the first to announce increases, of
9%.
Like the other energy companies, E.ON UK said various factors contributed to
the increase, including rising prices in wholesale markets and for fuel
produced from sustainable sources. It also cited higher costs for delivering
fuel and of providing services like free insulation, part of a government program.
E.ON UK Chief Executive Tony Cocker said the company believes its profit levels
are fair and will continue to be so.
"Last year our domestic profit margin was less than 2% and we will make
public the amount we make this year when we publish our 2012 results."