ENERGY company E.ON is the latest provider to reduce its customers’ household bills to reflect lower wholesale prices.
E.ON yesterday became the fifth of the big six energy companies to announce price cuts for either gas or electricity in the past few days.
E.ON said the cut to electricity would benefit three quarters of its customers. It represents a £31 drop in its customers’ average annual bills, the company claimed, though gas prices are for now unchanged.
The changes will kick in on 27 February.
But E.ON’s chief executive, Dr Tony Cocker said that prices were likely to go back up again at some point in the future.
He said: “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.”
So far, only Iberdrola-owned Scottish Power has failed to cut either its gas or electricity prices.
EDF Energy, Centrica, SSE and RWE npower also announced reduced prices last week, with three of the five big firms cutting their gas charges, and two cutting electricity prices.
“With cuts from five of the Big Six, the spotlight is now on Scottish Power as the last of the major suppliers to act,” said Adam Scorer, director of policy consumer lobby group Consumer Focus.