E.ON announces 6% cut in electricity prices - Gas and electricity - News - Moneyfacts

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E.ON announces 6% cut in electricity prices

E.ON announces 6% cut in electricity prices

Category: Gas and electricity

Updated: 16/01/2012
First Published: 16/01/2012

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E.ON has become the latest energy provider to announce a reduction in either its gas or electricity prices over the past few days.

The company has confirmed its standard electricity prices will decrease by 6% with effect from Monday 27 February.

It calculates the move will see £31 knocked off the average annual bill, with three quarters of all E.ON customers in line to benefit.

E.ON UK chief executive, Dr. Tony Cocker, said reductions over the last few months in the wholesale price that the firm pays for its customers' energy had now allowed it cut the price of its electricity.

However, Dr Cocker warned that it is likely that prices will have to rise again in the future.

"Whilst we're pleased to pass on this recent slight fall in wholesale prices, most experts agree that global energy prices will continue their long-term rise," he said.

The announcement means that five out of the so-called 'Big Six' energy providers have made reductions to either their gas or electricity tariffs in the past few days, with only Scottish Power yet to make a move.

"With cuts from five of the Big Six the spotlight is now on Scottish Power as the last of the major suppliers to act," said Adam Scorer, director of policy and public affairs at Consumer Focus.

"Their customers will also be keen to see if the supplier will buck the trend and makes deeper cuts or reductions across both gas and electricity given wholesale price falls in both.

"It's good to have seen such a quick series of price reductions.

"We hope this shows suppliers are waking up to the need for customers to see rapid cuts when wholesale prices are low and that this trend will continue if wholesale costs carry on falling.

"But customers will still be paying a lot more for their energy than they were a year ago and there will still be almost seven million households in fuel poverty."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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