Page last updated at 12:56 GMT, Monday, 8 March 2010

Gas bills to be cut by 6% for E.On customers

Gas rings
Other energy suppliers are expected to also cut prices

E.On has become the latest utility firm to reduce its gas bills for domestic customers - introducing a 6% cut from 31 March.

The average annual household bill for those paying by direct debit will drop by £42 as a result, E.On said.

The move comes after British Gas and Scottish & Southern cut their standard household gas prices by an average of 7% and 4% respectively.

The changes come after a period of lower wholesale costs.

Price comparison website USwitch said that the move meant E.On would be offering the second cheapest standard tariff behind Scottish and Southern.

British Gas has the cheapest standard dual fuel offering - covering gas and electricity - among the big six energy suppliers, it said.

Criticism

E.on has about 5.5 million UK customers. It said many of those would not be affected by the cuts as they either received only electricity, or were on fixed-rate deals.

Gas providers have come under pressure to cut bills after prices that they pay on the wholesale markets fell.

However consumer groups have criticised the sector for not moving faster to cut prices in the face of a bitterly cold winter.

And British Gas's price reductions came into force immediately - while Scottish & Southern and E.On customers must wait until the end of the month.

The latest moves are expected to push the others in the "big six" energy providers into cutting prices.

"This will heap pressure on the remaining three major suppliers to follow suit," Mr Lyons said.

An earlier version of this story quoted USwitch as saying that E.On would now be charging the lowest standard gas tariffs in the UK. USwitch now say this is not the case.



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