Energy firm Eon has announced it will cut around 500 jobs from its UK operations.

The firm blamed the cuts on “unprecedented” changes to the energy market and increasing competition, saying it will reduce numbers in “non-customer facing departments”.

The German energy provider will raise prices by 4.8 per cent in two weeks time, blaming a significant rise in wholesale energy costs.

Eon currently employs more than 9,400 people across the UK. It said the plans had been discussed with trade unions and would be carried out through a voluntary redundancy package where possible.

The precise shape of the redundancies is not yet known, due to the voluntary nature of the scheme.

The job cuts are part of a plan to achieve £100m in cost savings.

Michael Lewis, chief executive of Eon UK, said: “Were always looking to make sure were equipped to respond to the rapid pace and challenges of the UK energy market and we know we can never stand still if we are to continue giving customers a high-quality and cost-effective service.

“Weve undertaken a rigorous review of our options to ensure we keep costs as low as possible, become a more agile organisation and remain a sustainable business in the UK.”