Yet another major energy supplier has announced it is putting up prices in a move it says will affect 2.5million customers.

E.On, one of the so-called Big Six, is increasing the cost of its dual fuel standard tariff by 8.8 per cent from 26 April.

Npower, ScottishPower and EDF have also recently announced price hikes.

Breaking down the increase, E.On said its standard gas prices were going up by 3.8 per cent and standard electricity prices by 13.8 per cent.

Price comparison service uSwitch told Sky News that customers could save themselves up to £618 annually by switching account.

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, such as policies including EMR, RO and the Energy Company Obligation (ECO), which are paid for via people's energy bills, are increasing.

"We have been able to partially offset some of these rises through our wholesale hedging policy and other means, but we do have to make an increase."

Responding to the announcement, Citizens Advice said loyal customers would be most affected by the price rise.

Citizens Advice CEO Gillian Guy said: "Loyal customers will bear the brunt of yet another steep price rise from a large energy firm.

"Millions of E.ON customers on the standard variable tariff could find their bills have been pushed up further after years of paying more than other customers for the same gas and electricity.

"It is positive that E.ON will identify some of its vulnerable customers on the standard variable tariff and make it easier for them to get the cheapest deal on offer. But action is needed to lower the bills for loyal customers of all suppliers."

What do you think? Email mark@moosemarketingandpr.co.uk

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Readers' comments:

Mo Mottershaw: I wouldn't blame E.ON customers for changing to another supplier immediately. These large suppliers are getting really greedy!