Many E.ON customers will see an average 10.3 per cent price increase from April, the supplier has confirmed.

It comes after Ofgem said price caps designed to protect those on poor value deals would be hiked.

E.ON said that, in line with Ofgem's price cap, customers on its standard variable gas and electricity tariff will see bills increase by around £117 from £1,137 to £1,254.

It will be writing to those affected.

It said it has around 1.8 million customers on its standard variable tariff E.ON EnergyPlan.

E.ON said it expects to see "similar movements" take place across the energy industry.

Last week, Ofgem said it will increase the price cap for default and standard variable gas and electricity tariffs by £117 to £1,254 a year from April 1 due to hikes in wholesale costs.

The watchdog said previously that those affected will still pay a "fair price" for their energy as the increase reflects a genuine increase in underlying wholesale costs, rather than provider profiteering.

An E.ON spokeswoman said: "Ofgem's energy market price cap review set out that price cap levels would increase, driven by rising wholesale and other costs.

"In line with that, we'll be making changes to our standard variable tariff prices from April 1 and expect to see similar movements across the energy industry.

"Prices will not change for existing customers until then.

"Over the coming weeks we'll be writing to affected customers explaining what the changes will mean for them and encouraging them to choose the best tariff for their needs."

The firm said around £74 of the £117 increase in the default tariff cap is due to higher wholesale energy costs, which makes up over a third - £521 - of the overall cap.

Higher wholesale energy costs have similarly pushed up the level of the pre-payment meter cap, it added.

Last year higher oil prices, amongst other factors like the higher demand for gas from the Beast from the East, led to a rise in wholesale gas prices.

Because of the importance of gas as a source of electricity generation, this also led to higher wholesale electricity prices, the firm said. 

The Herald: Just Eat shares under pressure despite delivering profit surge

Just Eat has said it "takes communications with shareholders extremely seriously" after it was criticised by Cat Rock over recent board appointments.

Cat Rock Capital, which owns two per cent of the firm, urged the food delivery firm in an open letter to merge with a "well-run industry peer".

This, it said, was a better outcome than "relying on the board to choose a new CEO" following the departure of boss Peter Plumb last month.

Cat Rock's letter read: "Since Mr Plumb's departure, we have attempted to work with the board constructively and privately to achieve the best possible outcome for all Just Eat shareholders.

"Unfortunately, recent developments have made it clear that the board is squarely on the path to repeat the serious mistakes that led to Mr Plumb's appointment.

"Cat Rock argues that a merger with a well-run industry peer would be a far better outcome for shareholders than relying on the board to choose a new CEO."

A Just Eat spokesman said: "We take communications with all our shareholders extremely seriously.

"As announced previously, we are carrying out a thorough CEO appointment process and we will update the market as appropriate."

Connect Group's newspaper and magazine distribution division has secured a new long-term contract with Daily Mirror publisher Reach, worth about £220 million in annual revenue.

The new long-term contract with Reach is from October 2019 to September 2024 and covers all Smiths News' distribution territories, Connect said.

The contract also covers Reach's regional press business and OK! magazine.

Reach accounts for about 25 per cent of Smiths News's newspaper sales. Shares in Connect were 1% higher at 37.7p.