London (Platts)--7Feb2008

UK energy retailer E.ON UK said Thursday it would increase its power
prices by 9.7% and its gas prices by 15% from Friday.

E.ON UK is the fifth of the UK's big six energy retailers to increase its
prices this year, following RWE-Npower, EDF Energy, Centrica and Scottish
Power.

The last, Scottish & Southern Energy, said it would not raise its prices
until April at the earliest.

The company said that more than 550,000 customers are unaffected as they
are already on Price Protection or Fixed Price products, including more than
280,000 customers with StayWarm, E.ON's fixed price scheme for the over 60s.

Recent price hikes have attracted a lot of attention. The government's
Fuel Poverty Advisory Group said the government would miss its 2010 fuel
poverty reduction target as a result. A committee of members of parliament has
announced it will probe possible anti-competitive forces in the energy market.

In order to shield 670,000 vulnerable customers from the price hike until
after the winter months, E.ON UK said its Age Concern and prepayment meter
customers would not see higher prices until April.

E.ON said it had also launched the only available capped product on the
market. "Price Protection Until 2009" would allow customers to cap prices
until October 1, 2009 and has no tie-ins or cancellation fees.