You are here: Home - Household Bills - News -

E.ON cuts price of standard gas tariff

0
Written by: Paloma Kubiak
20/01/2016
Nearly two million E.ON customers will save an average £32 a year after the supplier slashed prices, but households could save more by switching.

Energy giant E.ON is to reduce standard gas prices by 5.1% from 1 February – the equivalent of three weeks’ gas use – for customers on its standard and pre-paid tariffs.

E.ON is the first of the Big Six providers (British Gas, EDF, Npower, Scottish Power and SSE) to cut its prices this year and it says the move will benefit nearly two million of its 4.5 million customer database.

The move comes just a week after Prime Minister David Cameron criticised suppliers for failing to cut the cost of household bills despite a fall in wholesale energy prices.

E.ON confirmed there’s no change to electricity prices or for those on E.ON’s fixed tariff.

But it has also unveiled a new one year fixed dual fuel tariff with an average annual price of £783 and a two year fixed tariff for those aged 60 or over.

It claims these are the cheapest tariffs available on the market today and any E.ON customer already on one of its fixed tariffs can switch without being hit by exit penalties.

‘Meagre gesture’

Experts said the cost cuts did not go far enough and customers could save more by switching.

James Padmore, head of energy at comparethemarket.com, said: “You wait an aeon for a price cut, and when it comes it is nowhere near enough. While 5.1% sounds decent, in reality it is a meagre gesture. £32 off the average annual bill is not a lot, particularly when you consider that households stand to save £336 on average a year by switching supplier.

“Wholesale gas prices have fallen by around 50% in the past two years – this cut doesn’t come near to reflecting this, even when you factor in other costs. E.ON is likely responding to a drop off in customer numbers – last month alone saw 26% of all energy switchers on our site move away from E.ON, largely to a smaller supplier.”

He adds that he expects the rest of the Big Six to come under pressure to announce their own cuts.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
insurance claims
Tax rise sends car insurance premiums soaring

Car insurance premiums soared in the final three months of 2015, while the cost of insuring property fell, new figures...

Close