E.ON reduces gas price by 3.5% – the equivalent of two weeks’ gas use – and launches cheapest product on the market of any supplier.                                                                                                                                               

• 3.5% average reduction to standard gas price applied immediately;
• Equivalent to two weeks’ gas use or £24 off an average annual gas bill;
• E.ON’s standard tariff is now second cheapest of all suppliers;
• Britain’s cheapest energy tariff available today – new one year fixed dual fuel product with average annual price of £923;
• Reduction comes despite political uncertainty and an increase in some costs associated with non-energy parts of the bill.

E.ON has announced it will reduce its standard gas price by an average of 3.5% with immediate effect. This is equivalent to two weeks’ gas use or £24 off an annual gas bill. E.ON has also launched the UK’s cheapest energy tariff, a one-year, dual fuel fixed product that is available from today and is open to new and existing customers alike. E.ON’s 4.5m residential customers (7.1m energy accounts) can switch between E.ON products without paying any exit fee.

Commenting on the move Tony Cocker, Chief Executive of E.ON UK, said: “Today’s 3.5% cut to our standard gas price and the launch of the UK’s cheapest energy tariff, our one year fixed product,  demonstrate that we fundamentally believe in doing the right thing for our customers. This is further evidenced by the fact we are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices this winter but also that, when our prices had to increase at the start of 2014 to reflect cost increases, for the second year running we announced later than any other major supplier and, on that occasion, at a lower average percentage increase level than any other major supplier.

“While oil prices have slumped, the gas price has remained volatile – some days up, some days down – and many of the other non-energy costs that we don’t control but make up a customer’s bill have increased and are set to increase further. However, today we’ve taken steps so we can make a price cut on our standard gas tariff at the same time as offering customers, existing and new, the chance to sign up to the UK’s lowest priced energy tariff. As we have always said where it is possible we will try to pass savings on to our customers.”

Commenting on the current political environment in the UK and in particular the widespread discussion of Labour’s proposed “price freeze”, Tony Cocker continued: “Given the possibility of a price freeze we are undoubtedly taking a risk today but we always put our customers first. That was in the forefront of our minds before Christmas when we began the detailed process of delivering today’s price cut.

“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. This includes all parties committing to accept the outcome of the current Competition and Markets Authority investigation into the energy industry when that completes at the end of this year to provide energy companies with the all-important political and regulatory certainty we need in order to be able to plan and run our businesses efficiently.

“For our part, we’ve once again delivered against our Government energy saving obligations ahead of the relevant deadline, in this case March 2015. In addition to helping to improve the housing stock of Britain so that customers can live in warmer homes, we’re making a real difference to our customers by installing smart meters and further continuing our work to help all of our customers use and pay for no more energy than they need.”

In response to E.On’s gas price cut anouncement Energy and Climate Change Secretary Ed Davey said: “This will be very welcome news for many billpayers. Those who aren’t seeing price cuts should check whether someone else can give them a better deal – many people have saved hundreds of pounds by switching supplier, which is now quicker and easier than ever before.

“The best deals on the market are cheaper than they were a year ago, which shows the Government’s reforms to the energy markets are working to get a better deal for consumers.”

To find out how E.ON can help customers use and pay for no more energy than they need please visit: eonenergy.com