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Eon cuts gas prices for customers


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.

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