Powergen today announced another steep hike in household bills, saying it will put up gas prices by 18.4 per cent and electricity prices by 9.7 per cent from Monday.
The increase will add at least £140 a year to the average Powergen customer’s energy bills, according to SimplySwitch.com, the price comparison website.
The average Powergen gas bill is now £644 a year and has more than doubled since 2003. The average electricity bill is £333 - up nearly two thirds in three years.
All the major energy suppliers have now lifted bills two times this year in the wake of large rises in wholesale prices.
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Powergen’s last increase, when it increased gas bills by 24.4 per cent and electriciy by 18.4 per cent in March, was the biggest increase the industry has seen.
Two week’s ago British Gas, the largest provider, hiked its prices by 12.4 per cent for gas and by 9.4 per cent for electricity. The move will add an estimated £109 to the average bill from September.
Rival EDF last increased prices bills 19 per cent for gas and 8 per cent for electricity, adding £135 to the average bill.
Scottish Power, npower and Scottish & Southern Energy have also recently announced similar moves.
Powergen, which is owned by Germany’s E.ON, blamed today’s rises on an 87 per cent increase since the beginning of last year in the cost of buying wholesale energy to sell on to its 8.5 million domestic customers in the UK.
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It said that one in ten of its customers would not be affected because they are on fixed-price deals. The increases were expected after E.ON said earlier this week that its UK profits had fallen from £413 million to £304 million in the first six months of the year.
Overall group profits for the Dusseldorf-based company however rose 13 per cent, to £3.26 billion in the first half of the year.
Energywatch, a consumer group, said the hikes were “another blow” to households already struggling with higher interest rates, dearer tuition fees and high levels of debt.
Adam Scorer, Energywatch’s director of campaigns, said: “With millions in fuel poverty, government and industry must come up with an effective strategy to protect those vulnerable customers most in need.”
Nick Horler, the managing director of Powergen Retail, said: “We take today’s announcement very seriously and we have fully considered its impact on our customers.”
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