Page last updated at 15:05 GMT, Thursday, 4 December 2008

E.ON acts on prices after probe

Electricity meter
Ofgem looked into E.ON's electricity prices' structure

Energy firm E.ON has cut the annual bills of some residential electricity customers who are not on mains gas.

It comes after regulator Ofgem found that E.ON electricity clients without mains gas could not benefit from discounts that dual customers received.

Customers from the East Midlands, East of England and North West, who buy just electricity from E.ON, will see their annual bills reduced by 14.

E.ON said it was acting on the ruling to ensure fair pricing for all.

"We've decided to level the playing field in our core regions by passing on this special reduction," said E.ON's managing director Graham Bartlett.

Last week, the energy provider said it hopes to reduce tariffs for all customers next year if wholesale gas and electricity prices continue to fall.

E.ON supplies gas and electricity to over 5 million residential and business customers in the UK.

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