Eon cuts gas prices for customers
14/01/2015
Energy firm Eon will cut gas prices for its customers by 3.5% will immediate effect.
German company Eon supplies gas and electricity to 4.5 million homes in the UK, who will now save on average £24 off an annual household gas bill.
Wholesale energy costs have fallen recently, they are now 30% lower than last year. This has put energy firms under huge pressure to lower the prices for consumers. So far, Eon is the only firm to do this. The Business, Energy and Enterprise Minister, Matthew Handcock, has written to the six biggest energy companies demanding price cuts for consumers. As well as this, Labour leader Ed Miliband has called for energy regulator Ofgem to be given more powers in regards to cutting energy prices when wholesale costs drop. Labour has also promised a price freeze in domestic energy should they win this years election.
Tony Cocker, chief executive of E.On UK, said:
"We are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices."
"We have made this decision knowing that our ability to recover costs, should the market outlook change in the months or years ahead, may be limited but we urge all political parties to recognise the realities of the energy industry and help us to continue to do the best for all of our customers."
Other energy firms have claimed that savings have been passed on to customers through fixed deals, and that they keep pricing under constant review.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Where are UK shoppers getting their money from?
Over the last few months the news on the UK economy has been disappointing to say the least, with unemployment now at 2.5 million, companies going bust every day, heightened industrial action in the workplace and more and more businesses struggling to survive. When you also take into account record consumer debt, problems with the property market and a lack of disposable income across the UK it is...
Read MoreMove to green energy hitting fuel poverty suffers
Those at the very bottom of the UK income spectrum are being hit disproportionately hard when it comes to investment in green technology and green energy. This is the conclusion of a report produced by the government's Fuel Policy Advisory Group which will force the UK government to think again about the green energy policies which are currently in place. But why should green energy cost more?...
Read MorePetrol prices set to fall to 3 year low
It looks as though 2009 could be an interesting year for motorists in the UK after the price of crude oil fell to just $39 a barrel yesterday. The price war which was instigated by Tesco has been matched by many of the leading UK fuel providers such as Total and Shell with many more are expected to follow. The AA has confirmed that the average cost of petrol fell in the last week of December from...
Read MoreCan the UK cope with this cold winter snap?
Over the last few days it has become apparent that the UK utility sector is firmly at the beck and call of overseas suppliers with particular concern in the area of gas. The Conservative party revealed that UK gas supplies, the backup system in place in the event of a catastrophic incident, have only eight days of gas supply left for the UK. While there is no chance that the UK gas supply will be...
Read MoreGovernment looking to increase ID card use
Despite reservations from the UK public and an array of consumer protection associations the UK government seems determined to push through its ID card program. This is a program which has ballooned in cost and been delayed and amended on a number of occasions but still appears to be central to the UK government's future policies. The government has asked the business arena to suggest more uses fo...
Read More