Eon joins rivals to cut gas prices by 6 per cent

Eon today became the third British energy provider to cut gas prices, reducing household tariffs by 6 per cent.

The average dual fuel bill will fall from £1,232 to £1,185, but the reduction will affect only 1.9 million of Eon’s 5.5 million British customers. Electricity-only customers or those on fixed-rate deals will not benefit from the cut.

Last week, Scottish & Southern Energy announced a 4 per cent cut to gas bills after a 7 per cent reduction by British Gas. EDF, ScottishPower and RWE npower have yet to adjust their rates.

The decline follows a sharp drop in wholesale gas prices over the past 18 months, which have tumbled from more than £1 per therm in mid-2008 to below 40p.

However, despite today’s reduction, the average gas bill for Eon customers is £272, or 30 per cent higher, than in January 2008.

Consumer groups welcomed the announcement but have criticised the energy sector for not moving more quickly to cut prices in the face of a bitterly cold winter.

Ann Robinson, the director of consumer policy of uSwitch.com, the comparison website, said: “This will not make up the ground lost two years ago when suppliers increased prices by 42 per cent, or an average of £381, and we now expect household energy bills to end up around £270 higher than two years ago, putting even more emphasis on the need for consumers to start managing their energy costs.”

British Gas has the cheapest standard dual fuel tariff, at an average of £1,158, against £1,162 at Scottish & Southern and £1,185 at Eon.

Npower’s tariff is the most expensive, at £1,256.

http://www.timesonline.co.uk/tol/money/consumer_affairs/article7053897.ece