E.On boss calls for energy bills support to be ‘targeted’ as prices set to jump

The boss of E.On UK has urged the Government to target any energy bills support to those most in need, as he insisted the supplier was “working really hard” to limit the price shock facing households over the summer.

Energy bills are expected to increase substantially from July when Ofgem sets its next price cap, due a recent spike in oil and gas prices caused by war in the Middle East.

Chris Norbury, chief executive of E.On UK, one of the UK’s biggest energy suppliers, told the Press Association: “It is a picture that moves every day.

“We spend a lot of time anyway, and particularly at the moment, with the energy markets team looking at what’s happening to wholesale markets through the observation window for the price cap.

“Do I think there’s going to be a significant increase to the level of the price cap from the 1st of July? As it stands today, sadly yes.”

E.On said there had been an increase in the number of customers making contact over worries about bills in the past few weeks, some relating to reports about the cost of energy.

“Affordability is always at the top of customers’ minds,” Mr Norbury said.

“We’re working really hard, we’re using the hedging capability that we have to make sure that we have competitive products on the market that deliver prices for customers at below the level of the price cap.”

Mr Norbury referred to E.On’s Next Pledge product which he said was “probably the most competitive tariff in the market today”, with rates that offer a £100 discount below Ofgem’s price cap, based on average annual usage.

He said the supplier was still offering a fixed-tariff product, amid a drop-off in the number of fixed deals available earlier in March, according to data from Uswitch.

Chancellor Rachel Reeves has said work is under way on targeted help for households when the current energy price cap expires at the end of June and global prices could push up domestic bills.

Ofgem’s price cap is based on average wholesale prices over a three-month period, so a spike in March will impact how that is set, as will what happens to prices in April and May.

Before then, average household energy bills are set to fall by 7% from April 1, driven by the Government’s promise to lower costs by an average of £150.

Mr Norbury told PA: “If it becomes necessary for the Government to intervene in any shape or form, we would certainly and have long been advocates of targeted support.

“All those customers who need that support, rather than blanket support, it needs to be targeted, particularly given the financial cost of any intervention such as that.”