E.ON has announced that it will not be increasing its gas and electricity prices this year.

The company's decision comes after it revealed that it made less than two per cent profit from supplying gas and electricity to UK homes in 2011.

Dr Tony Cocker, chief executive of E.ON UK, said: "E.ON will not raise residential prices in 2012. I want every family in the UK to know that we will always do our best to be fair and act in the best interests of our customers."

Mr Cocker continued by saying that he hopes the move will demonstrate that it is committed to helping its customers, while illustrating to potential future subscribers that it is a firm which prioritises consumers.

News of E.ON's decision follows a study by Gocompare.com, which found that electricity bills are the hardest to understand for consumers.

Thirty-six per cent of people find the expenses challenging to comprehend.