E.ON announce 6% cut in electricity prices from Feb 27th
E.ON has become the fifth major energy company to announce a price cut. The firm will cut the cost of electricity by six per cent from February 27th in a move that the company says will cut bills for 75 per cent of its customers.
E.ON follows British Gas in announcing a cut in the cost of electricity. British Gas announced on Thursday that it would cut the cost of electricity by five per cent with immediate effect. SSE, npower and EDF all announced reductions in the cost of the standard rate of gas on most of their tariffs. This means Scottish Power are the only one of the “big six” suppliers yet to announce a cut.
E.ON says the saving will reduce the annual fuel cost of a dual fuel customer by £31 a year.
All of the big six energy suppliers increased the cost of gas by at least 15 per cent between August and November last year. There were double-digit increases in electricity costs in the same period from four of the “big six”. Only EDF and npower kept the electricity rises down to between five and ten per cent. These two companies also introduced the price hikes later than the other four and EDF were also the first of the “big six” to introduce price cuts last week.
The reductions are in part down to the mild winter weather which has lowered demand for energy and the falling wholesale cost. However, they are also in part a result of the price cuts introduced earlier in the month from The Co-op, who cut gas prices by three per cent and Ovo Energy who announced a five per cent cut in both gas and electricity for dual fuel customers in the first week of January.
When Myfinances.co.uk carried out an analysis of the best dual fuel tariffs available from the “big six” at the start of the winter, E.ON’s Save Online 10 dual fuel deal worked out to be the cheapest.
E.ON UK Chief Executive, Dr. Tony Cocker said: “We understand that household bills are the most pressing concern for families across the country. Reductions over the last few months in the wholesale price that we pay for our customers’ energy have now allowed us to help as many of our customers as possible by cutting our electricity price. This 6% cut will help some 75% of our customers. “
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