E.On has announced a 5.1 per cent reduction in its standard gas price. All four of its dual fuel tariffs will be reduced. The company said the move made its new one year fixed dual fuel product the cheapest on the market today, with average annual price of £783.
Chief executive Tony Cocker said “The underlying position is that whilst the price we pay for our customers’ energy has fallen, we also have to take account of managing the various other risks in the market which can change, and the fact that many of the other costs that we don’t control but do have to bear have increased or may increase. Once you’ve built in various uncertainties and other factors, whilst the wholesale market movements may translate across to a dual fuel domestic bill for a drop in prices of under 10 per cent, the inclusion of those other factors translates the percentage to the standard gas cut announced today.”
Phil Grant, Energy Partner at Baringa, said: “The price cut announced by E.ON today is always going to come as welcome news for the cash strapped consumer, and given the competitive state of the retail market will undoubtedly fire the starter pistol for the other players to follow suit. Normally there is a lag between changes in the wholesale price and changes in the retail price – the latter lags the former – meaning that with the continued fall in wholesale prices, we can expect further reductions in retail tariffs this season.”