After pushing through a 9% price increase last year the company has reported a 26% rise amid investigation into 'big six'
Concern over the cost of energy was renewed yesterday when E.ON, one of the six biggest power companies, reported a 26% increase in profits from its UK retail business, after pushing through a 9% increase in bills at the start of last year.
Figures published by the company showed that profit margins for the UK domestic supply business over the past 12 months have increased from 2.3% to 4% since the price rise. E.ON made just under £300m in profits from the UK, and its parent group in Dusseldorf reported global profits of £7.7bn.
John Robertson, who sits on the House of Commons energy select committee, said the industry regulator, Ofgem, should not have the "wool pulled over its eyes" by the E.ON results, and should continue its investigations into excessive profits in the sector.
"E.ON are trying to play down their results," he said, "but the truth of the matter is, they make an absolute fortune from generation in this country and in Europe. And instead of paying out so much to shareholders, they should be trying to make energy affordable for some of the most vulnerable in society."
Ann Robinson, director of consumer policy at uSwitch.com, urged the power company to use its improved domestic result to help householders struggling with their bills.
She said: "E.ON was the last of the big six to raise bills this winter, and its price increase took into account the government's changes to environmental and social levies, which are paid for through household energy bills. However, we urge E.ON to use its improvement in profits to bring down prices for customers this year."
A spokesman for the energy group said it had already used its improved financial results to cushion its customers by keeping the latest bill increase at 3.7%, the lowest of the big six firms' rises.
Tony Cocker, chief executive of E.ON UK, said the 2013 supply profits had been driven by the cold weather at the start of last year and internal cost-cutting, and denied it was the result of exploiting customers. He called on the chancellor to use next week's budget to cut the carbon price floor, a tax on fossil fuels he said would cost British power customers £3bn a year between now and 2020.
Cocker said E.ON was helping to deliver "real help for families and businesses", pointing to figures showing that as part of government obligations on suppliers it had installed energy-saving measures in more than 100,000 homes in the past 15 months.
He added that the company supported the need for a full Competition Commission investigation into the sector, which is already being scrutinised by other regulators. Reported by guardian.co.uk 5 hours ago.
Concern over the cost of energy was renewed yesterday when E.ON, one of the six biggest power companies, reported a 26% increase in profits from its UK retail business, after pushing through a 9% increase in bills at the start of last year.
Figures published by the company showed that profit margins for the UK domestic supply business over the past 12 months have increased from 2.3% to 4% since the price rise. E.ON made just under £300m in profits from the UK, and its parent group in Dusseldorf reported global profits of £7.7bn.
John Robertson, who sits on the House of Commons energy select committee, said the industry regulator, Ofgem, should not have the "wool pulled over its eyes" by the E.ON results, and should continue its investigations into excessive profits in the sector.
"E.ON are trying to play down their results," he said, "but the truth of the matter is, they make an absolute fortune from generation in this country and in Europe. And instead of paying out so much to shareholders, they should be trying to make energy affordable for some of the most vulnerable in society."
Ann Robinson, director of consumer policy at uSwitch.com, urged the power company to use its improved domestic result to help householders struggling with their bills.
She said: "E.ON was the last of the big six to raise bills this winter, and its price increase took into account the government's changes to environmental and social levies, which are paid for through household energy bills. However, we urge E.ON to use its improvement in profits to bring down prices for customers this year."
A spokesman for the energy group said it had already used its improved financial results to cushion its customers by keeping the latest bill increase at 3.7%, the lowest of the big six firms' rises.
Tony Cocker, chief executive of E.ON UK, said the 2013 supply profits had been driven by the cold weather at the start of last year and internal cost-cutting, and denied it was the result of exploiting customers. He called on the chancellor to use next week's budget to cut the carbon price floor, a tax on fossil fuels he said would cost British power customers £3bn a year between now and 2020.
Cocker said E.ON was helping to deliver "real help for families and businesses", pointing to figures showing that as part of government obligations on suppliers it had installed energy-saving measures in more than 100,000 homes in the past 15 months.
He added that the company supported the need for a full Competition Commission investigation into the sector, which is already being scrutinised by other regulators. Reported by guardian.co.uk 5 hours ago.
