E.On customers face higher bills as company removes discounts
Money-saving expert Martin Lewis slammed the decision as a “backdoor price hike”.
Consumers are facing a hike in their gas and electricity bills after one of the big-six energy suppliers changed its pricing structure.
E.On is set to remove savings for customers who benefit from the dual fuel and paperless billing discounts on some tariffs.
Customers who pay for their energy quarterly by cash or cheque rather than by direct debit will also be hit with an additional charge of £10 per year, per fuel.
The average impact on standard variable tariff bills will be around £22 a year E.On spokeswoman
A spokeswoman for the energy company said: “The impact on our customers’ bills will vary depending on payment method, bill choice and fuel selection.
“While some customers will pay no more as a result of this change, the average impact on standard variable tariff bills will be around £22 a year.”
The company said the changes have been made “in light of rising costs along with other factors in the market”.
But money-saving expert Martin Lewis slammed E.On’s decision as a “backdoor price hike”.
Eon is doing a backdoor price hike (so unlikely for others to follow). It hasn't upped its unit prices, but on 1 April will change dual fuel discounts and standing charges on some tariffs.— Martin Lewis (@MartinSLewis) March 1, 2018
The average impact (it says) of someone on a standard variable tariff is £22/yr up.
He wrote on Twitter: “Eon is doing a backdoor price hike (so unlikely for others to follow).
“It hasn’t upped its unit prices, but on 1 April will change dual fuel discounts and standing charges on some tariffs.”
Dual fuel customers will lose their £20-a-year discount, and those who use paperless bills will lose their £5-per-fuel per-year saving.
The company confirmed the changes will not include a hike in the unit price of gas or electricity.
The changes will come into effect for existing standard variable tariff customers on April 19, and will apply to new fixed tariffs sold from March 1.
Customers on fixed tariffs sold before March 1 will not see any change until the end of their term.
Alex Neill, Which? managing director of home products and services, said: “Hard-pressed customers will be severely disappointed to hear about E.On’s price increase during this cold snap when many are already struggling to pay for their energy.”