Many E.ON customers will face an average of 10.3% price hike from 1 April, just days after Ofgem said those on poor value deals will be protected with price caps.
The energy firm said around 1.8m customers on their standard variable gas and electricity tariffs will see bills rise from £1,137 to £1,254 per annum or £117.
A spokeswoman for E.ON said, “Ofgem’s energy market price cap review set out that price cap levels would increase, driven by rising wholesale and other costs.
“In line with that, we’ll be making changes to our standard variable tariff prices from April 1 and expect to see similar movements across the energy industry.
“Prices will not change for existing customers until then.
“Over the coming weeks we’ll be writing to affected customers explaining what the changes will mean for them and encouraging them to choose the best tariff for their needs.”
Rik Smith, energy expert at uSwitch.com said, “Predictably, just four days after Ofgem announced it is raising the level of the price cap, we’re seeing suppliers start to raise prices, with E.ON hiking bills for customers on its standard tariff.”