E.on enters energy price war

Energy supplier E.on is to cut its prices by 6% from 31 March following similar reductions by British Gas and Scottish & Southern.

Gas

The company says the cut will reduce the average annual energy bill for customers paying by direct debit by £42, which it says makes it £26 cheaper a year than its rival British Gas.

E.on says it is also making its bills easier for customers to understand with a clearer design that makes important information made more prominent so customers can see how much energy they’re using and where they can make savings.

E.on says it is now cheaper than British Gas for standard single gas but British Gas claims that following its most recent cuts, it offers the cheapest option for dual fuel tariffs.

Graham Bartlett, managing director of E.on’s retail business, says the cuts are to alleviate the pressures customers have faced from the recession and an “exceptionally cold winter” adding that the fall in wholesale prices is only part of the pricing story as customers are using gas bought over longer period when prices were higher.

E.on introduced price cuts for its “most vulnerable” customers using its WarmAssist tariff from 1 March.

At the start of February British Gas launched a press and TV campaign to tell customers about its 7% price cuts.

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