E.ON has announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.

In a bid to help customers to manage future price uncertainty, the company has launched a new product for existing customers - a two-year fixed price deal with no premium against standard new prices and no penalty clause for early exit - and has guaranteed no more price increases for Age UK Energy customers for at least a year.

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Graham Bartlett, Managing Director of E.ON's Energy Solutions business, said: "I know that this is hard for customers and want to help them avoid future price volatility, which is why we've launched our new two-year fixed price deal.

"With offers like this - and by guaranteeing no further increases in our Age UK Energy prices for at least a year - we're able to give our customers some certainty in what are very uncertain times.

"And those uncertain times have had a huge effect on wholesale prices, with events in Japan and Libya all having a dramatic effect on gas and power prices in a relatively short period of time.

"In fact, even the Bank of England's Inflation Report pointed out that wholesale gas prices had increased by around 20% between February and May alone, and that retail prices were expected to go up by double figures."

The average dual fuel bill for an E.ON customer who pays with Direct Debit will be £1,190.