E.ON promises no residential price rises in 2012 - CEO says: "I want families to have certainty and know E.ON will always be fair."
E.ON has today (MON) provided peace of mind to some five million existing domestic customers, by promising not to raise residential prices in 2012, thereby demonstrating its commitment to be fair and transparent. This announcement comes just weeks after E.ON revealed it made less than 2% profit supplying gas and electricity to UK homes in 20111.
Dr. Tony Cocker, Chief Executive of E.ON UK said: "Let me be clear, E.ON will not raise residential prices in 2012. I want every family in the UK to know that we will always do our best to be fair and act in the best interests of our customers. Earlier this year we cut our prices in a way that helped some 75% of our customers and I hope that the certainty we've given today will show our customers again that we are committed to helping them, and I also hope that it will help to show millions more that if they look to switch they can find in E.ON a company that puts its customers first.
"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. We will continue to spare no effort in getting our customers energy fit by insulating homes, installing smart meters and providing advice that makes a real difference. That help and action, combined with the price cut announced in February and the promise we've made today, mean that E.ON customers can plan for the future and properly control their energy costs, as well as reducing their consumption."
As clearly evidenced by the changes made as part of E.ON's Reset Review, today's price promise and the values that are at the core of its business, E.ON has shown it stands foremost in the energy industry as a company driven by fairness.
"Our Reset Review is about real changes - whether big or small - in how we meet our customers' needs. We'll continue our work to improve our customers' experience with us into the summer and beyond, particularly concentrating on clearer, more accurate bills, simpler tariffs that can be easily compared, and making improvements for our vulnerable and small business customers."
In January, E.ON launched its Reset Review which is designed to examine every aspect of E.ON's relationship with its customers - from tariffs and bills to how customers pay, how products are sold and how support is offered. E.ON's Reset Review continues to identify and discuss changes with customers through its 28,000-strong YourSay panel, its independent Customer Council, its 1,000-strong MySay employee panel and through discussions with consumer advocacy groups such as Which? and Consumer Focus. For further information, details of the improvements made to date or to join customers already on the YourSay panel, please visit www.eonenergy.com/reset.
1 = Domestic (Residential) margin presented as OFGEM segmented residential margin view 1.68% (includes Depreciation, Amortisation, allocation of central costs and VAT).
Notes to editors:
- E.ON is one of the UK's leading power and gas companies - generating electricity, retailing power and gas, developing gas storage and undertaking gas and oil exploration and production. It is part of the E.ON group, one of the world's largest investor-owned power and gas companies. E.ON employs around 12,000 people in the UK and more than 79,000 worldwide;
- In the UK, E.ON supplies power and gas to around five million domestic, small and medium-sized enterprise and industrial customers - meaning the company has to buy approximately 122.7 billion kWh of power and gas each year to meet their needs. E.ON also offers innovative energy services and technologies tailored to meet its customers' needs, and is helping customers become energy fit by encouraging them to insulate their homes, moderate their energy usage and even generate their own power;
- E.ON's Reset Review continues to identify and discuss changes with customers through its 28,000-strong YourSay panel, its independent Customer Council comprising business leader Allan Leighton, Mumsnet founder Justine Roberts and ex-MP and Select Committee chair Paddy Tipping, its 1,000-strong MySay employee panel and through discussions with consumer advocacy groups such as Which? and Consumer Focus. Changes made to date include: Helping customers control their bills: Fair prices, simple products, transparent profits, A fairer way of paying: Providing stability to help households budget, Improving customer service: Consistency, easier contact, the confidence to complain;
- E.ON's generation portfolio includes world-class gas-, coal- and oil-fired power stations. E.ON is a market leader in combined heat and power (CHP), and is one of the UK's leading green generators with 20 wind farms and the UK's first wave power generator, with another 1,500MW of renewable capacity under development;
- One of the many ways E.ON leads the energy industry is through its commitment to market liquidity and transparency as evidenced by its actions on the day-ahead UK power markets including the N2EX auction. E.ON was the first company to sign a gross-bidding agreement with N2EX and leads the market with a volume equivalent to some 80% of E.ON UK's generation activity being traded so far this year.
For more information contact:
Scott Somerville (02476 183 438)
Victoria Blake (02476 181 304)