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Energy company raises UK prices

Energy company raises UK prices

Energy company E.On UK said Thursday that it is raising gas prices for its domestic British customers by 26 percent, making it the third of the country's six big energy providers to increase prices this summer.
The company, which is part of Germany's E.On Group, will also increase electricity prices by 16 percent for around 4 million of its 5.5 million customers. Both charges come into effect on Friday.
E.On blamed the increases on its soaring wholesale costs, which it said had jumped by more than 51 percent since February.
The price rise will put even more inflationary pressure on the British economy. Inflation is already at 4.4 percent _ more than double the government's 2 percent target.
Bank of England governor Mervyn King has predicted that inflation will rise to 5 percent, due to higher energy and commodity prices, before coming back to target early next year.
EDF Energy and British Gas raised their energy prices last month. EDF lifted gas prices by 22 percent and electricity prices by 17 percent, while British Gas pushed through a record 35 percent rise in gas prices and a 9 percent rise in electricity prices.
Scottish and Southern Energy, Scottish Power and NPower _ the three remaining energy companies _ are also expected to raise their prices in the coming months.
"This is a very tough time for everyone," said Graham Bartlett, managing director of E.On's retail business.


Updated : 2021-05-07 22:18 GMT+08:00