E.ON shares plunge as firm raises prices

<p>Shares in E.ON have plunged as the company raises its energy prices.</p>

Shares in E.ON have taken a nosedive on the London Stock Exchange (LSE) this morning (December 10th) on news the company is raising its gas and electricity prices.

The provider is the last of the so-called big six companies to do so this winter.

Its average dual fuel bill will rise next month by 8.7 per cent, with electricity shooting up by 7.7 per cent and gas climbing by 9.4 per cent.

In May of this year, E.ON pledged to keep its residential energy prices the same throughout 2012, but the company says this January 18th rise is necessary due to the increasing price of energy on the wholesale markets and regulatory costs.

"We have held back from increasing our prices for as long as we possibly could," stated Tony Cocker, E.ON's chief executive.

At noon on the LSE in London today, E.ON shares slipped by 1.3 per cent to €13.74 per unit.

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