E.On announces 5.1% gas price cut for customers

Residential customers to see average of £32 cut to bills

E.On has become the first big six energy company to announce a price cut in the last six months.

The firm said the cuts would mean residential customers would see an average of £32 cut from their bills.

The cuts follow a fall to wholesale gas prices, and subsequent criticism from politicians and consumer groups that the savings were not being passed on to customers.

But Ann Robinson, the director of policy at price comparison site Uswitch, said the cuts did not go far enough.

“With wholesale prices predicted to remain low this year, consumers should be seeing bill reductions of at least 10% - around £120 a year - on both gas and electricity,” she said.

But E.On chief executive Tony Cocker said that though wholesale gas prices had fallen, firms couldn’t pass the full saving on to customers.

He 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.”

Now that one of the big six energy firms has reduced its price, it is likely to be a catalyst for others to follow suit.

This will be welcome news for Londoners who woke to a heavy frost this morning. Brrrrr etc.

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