By Claire West

E.ON is writing to customers to confirm price rise, effective from 18th January 20131.

The average dual fuel price increase is 8.7%, and the average electricity only price increase is 7.7%, average gas only price increase is 9.4%.

Tony Cocker, E.ON Chief Executive, said:

"We have held back from increasing our prices for as long as we possibly could and at the same time have worked hard to reduce our own costs as a business so that our customers can get the best price possible. However, some 16 months after our last price increase, and almost a year since we actually cut our electricity prices, we have had to make the difficult decision to increase our prices.

"In the next few days every customer affected by this price change will receive a letter from us explaining the detail behind this announcement. Wherever we can, we will include the likely impact on the customer's own bill"