CONSUMERS are facing another hike in gas and electricity prices, it was announced today.
Energy giant E.ON, which has 5.5 million UK customers, said it will increase the price it charges for gas by 26 per cent, while electricity customers will see a 16 per cent increase.
The increases will come into force from tomorrow and follow simi
lar moves from rivals British Gas and EDF.
Dual fuel customers who take both gas and electricity from E.ON will see their annual bills rise by 22 per cent, or £227, to £1226.
The price rises come as new figures published today show that the number of people being given mortgages in Scotland has plummeted by more than a third.
Graham Bartlett, the managing director of E.ON's retail business, said: "I'm very aware of the effect that today's announcement will have on our customers and I recognise that this is a very tough time for everyone.
"This was not an easy decision to make and we've tried to keep these increases as low as possible while protecting as many of our customers as we can."
The move comes after British Gas announced another 35 per cent rise for gas bills last month, and 9 per cent for electricity, with rival EDF upping bills by up to 22 per cent.
Age Concern director general Gordon Lishman said: "These enormous price hikes will be a huge blow to millions of people already wondering just how they're going to pay their bills this winter.
"We are extremely concerned that the one in three pensioner households likely to be living in fuel poverty by the end of the year will feel forced to cut back on essential food or fuel. The Government must seize control of this escalating crisis and take immediate action to ease the pressure on millions of households."
Meanwhile, the latest data from the Council of Mortgage Lenders (CML) shows the extent that banks have tightened up on lending to people buying homes.
The figures show that there were 18,500 loans for house purchases in Scotland between April and June, compared to 28,200 in the same period last year.
There were 6600 loans to first-time buyers in the second quarter of 2008, 31.3 per cent lower than the same time last year.
But although the mortgage market in Scotland has contracted, it is still faring better than the overall UK market, where there was a 46 per cent year-on-year decline in the second quarter.
Crawford McCaughie, chairman of CML Scotland and senior lending manager at Dunfermline Building Society, said: "The mortgage market is clearly in a period of decline across the UK as a result of the shortage of mortgage funding and softening borrower demand. But the slowdown is less pronounced in Scotland."
Jonathan Fair, chief executive of Homes for Scotland, said: "Consumers should take confidence from the very clear message that our overall housing market continues to be more resilient than the rest of the UK."
The full article contains 510 words and appears in Edinburgh Evening News newspaper.
