Prize freeze respite for millions

In the week after British Gas threatened a £130 increase to energy bills. E.On has promised not to raise residential energy prices for its 4.8 million domestic customers for the remainder of 2012.

E.On is the only 'big six' supplier to commit to not raising prices this year though SSE and EDF have promised respite until autumn: Tom Lyon, energy expert at uSwitch.com, said: “There is some uncertainty over prices and consumers will be worried about what this might mean for their bills. While SSE has moved to reassure its customers they will be protected from higher prices at least until the autumn, E.On has gone one step further by promising a price freeze throughout 2012. This is good news for its five million domestic customers."

Tony Cocker, chief executive of E.On UK, said: "Let me be clear, E.On will not raise residential prices in 2012. Unfortunately global energy markets are expected to see an overall trend of rising wholesale prices, but as a company we believe in acting fairly, which means cutting prices when we can and never raising prices unless absolutely necessary,’ he explained. "I want families to have certainty and know E.On will always be fair."

"This announcement comes after we revealed we made less than 2% profit supplying gas and electricity to UK homes in 2011 and further demonstrates our commitment to be fair and transparent.”

Fair and transparent, or just a little something to retain customers and cushion the blow of 2013 prices?

Elinore Mackay

elinorem@electricalreview.co.uk