E.ON UK's chief executive Tony Cocker says there are a variety of reasons why energy bills have been increasing.

Around five million households face an average rise of £110 on their annual energy bills after E.ON became the last of the 'big six' energy firms to increase its prices this winter.

The company said that from January 18, the average annual dual fuel bill will rise by 8.7 per cent for its customers. Meanwhile electricity-only prices will increase by 7.7 per cent and gas-only prices will increase by 9.4 per cent.

This means that the typical E.ON dual fuel customer will see their bill rise from £1,260 to £1,370, according to Uswitch.com, the price comparison site.

E.ON becomes the last of the big six companies to raise its prices. Companies including British Gas and Npower have already announced large increases in bills.

Ann Robinson, director of consumer policy at Uswitch.com, said that the rise means that average energy bills will hit an all-time high of £1,352, up nearly a quarter on the year. She said the rise is a "bitter blow" for customers.

"As winter temperatures plummet, consumers could buckle under the strain of higher energy prices," said Ms Robinson.

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