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
Do you ever feel a cold chill in your home?
There are many areas of everyday life where it is difficult to cut costs and save money but there are also many simple techniques which we seem to ignore which can actually save us a lot of money in the short, medium and longer term.
How many times have you sat in your home with the wind howling outside and noticed something of a cold chill around your window frames and your door fr...
British Gas and E.ON reduce energy tariffs
As energy prices continue to fluctuate in the UK, today saw British Gas and E.ON reduce their dual tariffs to under £1000 a year. As soon as the British Gas Web Saver 4 tariff was released, E.ON introduced its own FixOnline 3 which is £10 cheaper at £984 a year.
The E.ON tariff also enables customers to fix their prices until 1 December 2010 which on the surface seems very attrac...
Selling a car? Ditch the fags
With the new smoking ban prohibiting drivers smoking in commercial vehicles, there have been calls for a ban on smoking for all drivers. This could not just reduce traffic accidents, but also add to the value of your car, Easier Motoring reports. British Car Auctions (BCA) says that presentation is the top factor influencing the price a seller can get for a used car after specifications. Tim Naylo...
Read MoreSmart meters will only save £26 a year on energy bills
10/09/2014 Smart meters, which are due to be installed into every home in Britain by 2020, will only save consumers 2%, or £26, on their annual bills. The Public Accounts Committee, a committee who look into parliaments spending, have advised that even though the smart meters may help consumers reduce their energy consumption, they will only save 2% on their bills annually. Installing the m...
Read MoreIs There Life After The Credit Crunch?
As the credit crunch continues to bite deep into the heart of the UK economy many thoughts are now moving towards how the economy will look after the falls end and we see some stabilisation. There is real concern that the after affects of the current situation will drag on for many years with large numbers of the population set to be left with very substantial debts.
Credit card de...