This would mean a rise of £117 for those with typical energy usage on a default - or variable - tariff.
Some E.ON customers will see an average 10.3% price increase from April 1, the supplier has confirmed, just days after Ofgem said price caps created to protect those on poor value deals would be hiked.
Energy supplier E.On has become the first major company to announce price rises in response to a new cap set by the regulator for the start of April. In line with that, we'll.
The price cap was only introduced to protect customers who were still on suppliers" "default tariffs', and so customers on fixed rate tariffs are not affected by it. Default tariffs typically have much higher rates as suppliers take advantage of the fact that the customer hasn't shopped around for a cheaper deal.
Several of Britain's biggest suppliers, a group known as the big six, which control around 70 percent of the market, complained the cap was initially set too low and most are expected to up their prices to match the cap level.
"Under the caps, households on default tariffs are protected and will always pay a fair price for their energy, even though the levels will increase from 1 April".
Higher wholesale energy costs have also pushed the level of the prepayment tariff, it adds.
According to Uswitch.com, the tariff will be £286 more expensive than the cheapest deal now on the market.
"This hike in energy prices to the maximum level permitted by the price cap from April will be hard to stomach for more than a million households - particularly announced so quickly", Which's Alex Neill said.
"While there are fewer cheap deals on the market than a year ago, by switching today you could choose better customer service and potentially save nearly £300 a year compared to the April price cap level".
Ofgem cited increasing wholesale gas and electricity costs as the key motivation behind raising the cap.
It said it has around 1.8 million customers on its standard variable tariff E.ON EnergyPlan. It said the allowance for wholesale costs now makes up more than a third (£521) of the overall cap.
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