Energy bills set for 10pc price hike

POWER giants E.ON and EDF are the first of the Big Six to reveal plans to hike gas and electricity bills just four days after households were told the energy price cap was set to rise.

Both suppliers will increase the cost of their standard variable tariffs by 10 pc from April 1, affecting 1.8 million customers.

The rise will match the new higher price cap of £1,254-a-year, making E.ON and EDF’s standard tariffs £286 a year more expensive than the cheapest deal on the market, according to analysis by uSwitch.com. The cap was originally set at £ 1,137 in the New Year to protect households on default tariffs from unfair bills and save them on average £76 annually.

But one month later, energy watchdog Ofgem announced from April 1 the cap would increase by £117 to £1,254. Customers with pre-payment meters will see the cap rise by £106 to £1,242.

Ofgem blamed the rising wholesale cost of gas and electricity for the increase.