Five of the "big six" UK domestic energy suppliers have now raised their prices since the start of the new year.

Energy firm Eon today became the latest power company to announce inflation-busting price rises for its residential customers.  The firm, which used to be called Powergen, will raise electricity prices by 9.7% and gas prices by 15%.

The increases will push the average dual fuel bill up from £913 to £1,031 a year.

For the majority of customers the price rises came into effect on Friday, but customers who signed up with the supplier through Age Concern and those on pre-payment meters will not be affected until April 1.

Eon, which is the fifth big energy provider to increase prices this year, blamed rising wholesale costs for its decision.

It said that since it cut prices for residential customers in February last year, the wholesale cost of gas and electricity had risen by 60% and 88% respectively.

The managing director of Eon Energy, Graham Bartlett, said: "We realise the impact this price increase will have on our customers and we're doing everything we can to minimise this. Our announcement has been made in response to sustained pressures from the wholesale market.

"We are offering a new product to allow more customers to join the half-a-million already benefiting from protected prices, while also helping those customers who are most in need."

The industry watchdog Energywatch said the size of the rises were "depressingly similar" to those applied by other energy suppliers.

"You can hardly put a pin between the suppliers' percentage rises, said director of campaigns, Adam Scorer.

"All the companies have quoted different percentage rises in wholesale gas costs, all the companies have different electricity generation, they all have different hedging strategies, yet they come within £13 of each other on a £1,000 bill."

Scorer also welcomed the announcement earlier this week that a committee of MPs will be investigating the UK energy market following increasing concern about a lack of competition between suppliers.

Already this year, customers of British Gas, Scottish Power, EDF and npower have seen double-digit rises in their bills, with all of the companies blaming rising wholesale prices and increasing distribution costs.

Of the major energy providers, only Scottish and Southern Energy has said it won't raise prices on winter bills. It has pledged not to change its tariffs until April at the earliest.

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Sources: http://www.guardian.co.uk/

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