E.on has become the latest energy firm to announce a major price hike, with bills for a typical dual-fuel household on its standard tariff set to jump by 8.8% from 26 April.
Some 2.5 million households - 62% of E.on's total customer base - are on the firm's credit meter standard tariffs and so will be hit by the hikes. Those with fixed or prepay tariffs won't be affected.
The cost of electricity for those on its standard variable tariff will increase by an average of 13.8%, while gas will rise by an average 3.8%.
It means the annual bill of a typical dual-fuel household paying by direct debit will rise by almost £100, from £1,047 to £1,144.
E.on is only the latest firm to announce a price hike, with EDF, Npower, Scottish Power, Co-op Energy and First Utility all having announced significant increases in recent weeks.
British Gas has extended its current standard-tariff price freeze until 1 August 2017 – though if you're on a British Gas standard tariff, you're likely already overpaying.
Get Our Free Money Tips Email!
'Don't moan, take action'
Martin Lewis, founder of MoneySavingExpert.com, said: "Moaning that prices are going up won’t help. Instead this should be seen as a clarion call for action.
"After this price rise, an E.on customer will typically be paying £1,144 a year - our cheapenergyclub.com shows the cheapest tariff on the market would charge you £834 for exactly the same, and all the cheap deals are 1-year fixes, so you’re guaranteed no price hikes.
"The best thing for E.on customers and all others to do is a whole-of-market comparison, but even if you’re not willing to do that, call up your existing company and say ‘Am I on your cheapest deal?’. Most people aren’t, and hundreds can be saved with just one phone call."
What does E.on say?
Echoing other firms who've raised prices, E.on has blamed the increase on the cost of renewables and other environmental and social schemes.
E.on UK chief executive Tony Cocker said: “This is the first time since January 2014 that we have increased our standard variable prices. It is an announcement we never want to make but is due in large part to the fact that many of the costs we don’t directly control.
“We will continue to work to make sure our customers are on the best tariff for them. For example we will be sending more than three million letters to customers this month with personalised savings messages making it clear how easy it is to swap to another tariff that might offer cheaper prices.
"In addition we will also be working to contact a number of potentially vulnerable customers currently on our standard variable tariff with a personalised quote for an exclusive product, which will be E.ON’s cheapest tariff.”