E.ON UK has become the latest energy supplier to respond to rising wholesale energy costs by increasing electricity prices by 16% and gas prices by 26% for the majority of its residential customers, effective from August 22, 2008.

The move comes as a result of rising wholesale costs which have increased by over 51% since February 2008, according to E.ON. This will equate to GBP0.62 per day or 22% for the average dual fuel customer.

It is reported that more than a quarter of E.ON’s customers are unaffected by the price hike as they are already on price protection and fixed price products. E.ON has also launched a range of new protection products.

Graham Bartlett, managing director of E.ON’s retail business, said: I am very aware of the effect that today’s announcement will have on our customers and I recognize that this is a very tough time for everyone. This was not an easy decision to make and we have tried to keep these increases as low as possible while protecting as many of our customers as we can.