E.ON puts up prices by 3.7%: Last of the Big Six energy firms announces winter bill hike days after government deal on green levies Gas to rise by 4.6% and electricity by 3.7%, energy firm reveals The rest of the Big Six had announced rises of up to 10% to hit this winter But they rowed back after the government cut green levies by £50 Energy giant E.ON today became the last of the Big Six to hit customers with winter price hikes, pushing up bills by 3.7 per cent. The increase in gas and electricity costs is much lower than the double digit figures unveiled by rivals in recent weeks, but comes after the government deal to cut £50 off the green levies imposed on customers" bills. Even after the changes agreed with ministers, families will still be paying on average £60 more for their energy this winter. On average bills will be £60 higher than before this year's round of price hikes even after the government deal to reduce green levies by £50 E.ON said it was "working hard to limit the impact on its customers" by announcing a lower average percentage rise than any other major supplier. Chief executive Tony Cocker said changes announced by the Government earlier this week reduced the overall level of the rise that was necessary to cover extra costs. It will see the average variable dual fuel bill go up by 3.7 per cent or £48, electricity only prices go up by 3.7 per cent or £20, and gas only climb by 4.6 per cent or £37. The changes will take effect from January 18. The increase is the last to be announced by any of the so-called Big Six firms that dominate the energy supply market. British Gas customers were told they faced a 9.2 per cent tariff hike, with SSE rates going up 8.2 per cent, npower 10.4 per cent, and Scottish Power 8.6 per cent. The Big Six energy firms have agreed to pass on the £50 saving to customers However, they have said they will pass on savings from a shake-up on green levies announced earlier this week that it is estimated could shave £50 off bills. EDF has announced a 3.9 per cent rise, saying it was holding back the full impact of rising costs in anticipation of the Government's changes. While E.ON's rise is lower than those of its rivals, it is still higher than the inflation rate of 2.2 per cent. It blamed the rising costs of delivering energy and buying wholesale gas and electricity while also admitting £4 on every typical bill would go on extra profit. Mr Cocker said: "There is no escaping the simple fact that any price rise is unwelcome news for customers. We know that, which is why we have held off for longer than most of our competitors and worked hard to keep our rise as low as possible. We have moved quickly to pass on the benefits of changes announced by the Government at the beginning of this week. This means we have reduced the overall level of a rise that is necessary to cover the extra costs we are seeing in some areas, as well as making sure we continue to deliver a sustainable future for all of our employees and maintain our investment in the UK. Whilst there can be no guarantees, the likelihood of further price rises over the next 18 months caused by an increase in the cost of social and environmental obligations has receded due to the recent action taken by the Government. Asked about the timing of the announcement, which came amid a media focus on the death of Nelson Mandela and the devastating storms across the country, Downing Street said: "It is for them to explain their decisions." Ann Robinson, director of consumer policy at website uSwitch.com, says: 'This round of price hikes has added to the burden for consumers struggling to afford to stay warm. The Government has tried to lend a hand, but suppliers now have to play their part too. They must do the right thing by passing the cuts on to their customers ASAP so that households can feel the benefit throughout winter. 'Suppliers that are unable to provide this much-needed relief this year should backdate it so that customers don't lose out.' Chancellor George Osborne yesterday boasted that he was "helping families with their energy bills." Delivering his Autumn Statement in the Commons, he added: "Not with a transparent con by pretending that we can control the world oil price. But instead by focussing on the thing government can and should control: the levies and charges that previous Energy Secretaries piled on bills. This week we deliver on the promise made by the Prime Minister to roll back those levies. The result: an average of £50 off family bills. We're doing this in a way that supports the lowest income families, reduces carbon, supports investment in our energy infrastructure and... does not add a penny to the tax bill families pay. Chancellor George Osborne used his Autumn Statement to boast of cutting bills by £50 Ministers stress that they have never promised to cut bills overall, insisting they can only act to reduce the costs of government policy.