E.ON (ETR: EOAN) is increasing prices for the second time this year, affecting almost two million households.
The average price increase is expected to add an average of £55 to customers, a hike of 4.8 percent.
“A number of costs have risen quite sharply and in particular we’ve experienced a hike in the price we have to pay for the energy our customers need, partly driven by the beast from the east and extreme weather conditions experienced earlier this year,” said Michael Lewis, the E.ON UK chief executive.
The energy supplier blamed wholesale energy costs for the rise in prices. According to E.ON, wholesale energy prices have increased by over a fifth since its last big price hike last year.
Some of the group’s customers also faced an increase of up to £50 in March.
The changes are expected to come into effect on August 16 and will bring the total average annual bill to £1,208.
The group will notify customers in the coming weeks and has said it will also suggest they switch to cheaper fixed tariffs.
“Those changes led to the removal of discounts and a change to the standing charge for people who pay on demand by cash or cheque,” said a spokesperson for E.ON.
“This is an increase in unit price, which makes us the fourth cheapest of the big six suppliers.”
E.ON is not the first of the big six energy suppliers to announce price hikes this year.
British Gas (LON: CNA) customers have seen prices increase by 5.5 percent or £60, EDF (EPA: EDF) raised bills by an average of 2.7 percent or £16 and SSE (LON: SSE) saw prices rise by 6.78 percent or £76 a year.