Energy bills set to soar as Big Six gas and electricity giants prepare to pass on wholesale price rise

FAMILIES face a hike in their energy bills as power giants get set to pass on increases in the price they pay.

Wholesale gas and electricity prices are rising after a period of staying steady or falling.

Sources say energy firms are looking to pass on the price rises — despite The Sun’s campaign to highlight how customers are already overpaying.

It could see the average standard variable tariff rise 13 per cent from £1,063 to £1,201 per year.

Some firms could delay an increase as they “hedged” against wholesale costs rising by pre-buying power at lower rates earlier this year.

A source at one of the Big Six suppliers said: “Price rises are coming.

“None of us bigger firms will want to go first but it will come to a point where we have to.

“Hiking before Christmas will mean we get a lot of grief so firms will sit there now doing the maths to see how long they can hold off.

“The bigger ones can hold off a bit longer than the smaller ones.

“They pre-buy more power and also have deeper pockets to soak up tighter margins for a while.

“But don’t be surprised if some of the smaller suppliers raise prices.”

E.ON has already warned investors they have not hedged enough for their UK business.

Co-op raised the price of their standard variable tariff last month.

Critics said the Big Six are quick to pass on price rises but slow to pass on any savings.

Will Hodson, of consumer collective TheBig Deal.com, said:   “When wholesale prices dropped it took them forever and a day to pass those savings on.”

E.ON said it would not speculate on pricing.