Britain’s 6 million customers of Powergen are bracing themselves for further price rises after parent company E.ON announced a significant dip in UK profits. Pre-tax profits for UK operations fell by 26% to £304m in the first half of the year.

Despite double-digit gasd and electricity price rises from Powergen in March, the company says that the fall in profits combined with continued increases in costs means that they will be keeping prices ‘under constant review’.

Powergen is the only major UK energy provider to have so far avoided a second price hike in 2006, although how long this remains the case is now open to doubt.

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