The Scottish Federation of Housing Associations (SFHA) has responded to the news that E.ON is to increase its prices by 3.7% from January 2014.

The energy firm is the last of the 'big six' companies to raise its prices, and the SFHA has said the move is "another blow to hard-pressed customers".

David Stewart, SFHA Policy Manager said: "In view of the changes to the Energy Company Obligation (ECO) announced in the Autumn Statement, it is extremely disappointing to hear yet another of the 'big six' announce an above inflation price increase.

"Following suggestions from the energy industry that the cost of green measures had a significant role to play in rising fuel prices, George Osborne has watered down the targets set for ECO, reducing by two thirds the amount of solid wall homes expected to receive insulation by 2017.

"Energy efficiency schemes across Scotland which would have benefitted many living in fuel poverty will now be placed in jeopardy by the reduction.

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"Following hard on the heels of the Chancellor's shift in policy, this price increase will be a hard pill to swallow for many who are already struggling to pay their energy bills as winter bites.

"We already know that a third of households in Scotland are living in fuel poverty, often facing a choice between heating and eating. This increase in prices will push more people into that stark choice and comes at a time when many are already struggling financially due to the UK Government's welfare spending cuts."

Mr Stewart continued: "Housing associations and co-operatives have the most energy efficient homes in Scotland. However, over the past few years, hikes in fuel prices have posed a real challenge to our members who often house vulnerable people who are living on low incomes.

"We therefore repeat our call for energy companies to directly fund face-to-face energy advice for vulnerable consumers, in order to protect them from the worst impacts of these above inflation price rises."

On Friday, E.ON confirmed an average price rise of 3.7% for dual fuel customers would come into force on 18 January 2014. It said the increase takes account of the changes to green and social levies, some of which were removed from fuel bills by the government.

The price change means customers will face an additional £48 to the average dual fuel bill. For those with just an electricity account, they will see prices rise by 3.7% or £20 a year, while gas-only customers will be charged an average of 4.6% more, or £37 a year.

(JP)