E.On reduces gas tariffs by 3.3%

06/07/2009

The competitiveness of the UK energy market is hotting up, with a new price cut from a "big six" provider.

German-owned E.On is reducing bills for 1.8 million of its customers, by cutting gas tariffs by 3.3 per cent a year.

Standing charges for customers on prepayment meters - who traditionally pay more for their fuel than those on direct debit online schemes - have also been halted by the firm.

In March, E.On cut electricity tariffs for customers by nine per cent.

Falls in wholesale energy costs have been a major factor in recent price cuts by the UK's gas and electricity providers.

However, prices were previously increased across 2008, meaning that overall energy bills have still grown over the past year and a half for most.

For example, figures from price comparison site energyhelpline, cited by the Press Association, show that electricity and gas prices were hiked by E.On by 45 per cent and 27 per cent respectively across 2008.

Commenting on the move, EuroDebt director Kevin Still said: "E.On have followed the British Gas example, but care needs to be taken with regard to who is eligible for the cuts. The devil is in the small print. EuroDebt would recommend that consumers use free and independent tools, like EuroDebt's comparator at www.energyswitching.co.uk, to determine the best tariffs available that suit your consumption and preferred payment methods.

"For people struggling to meet monthly payments, switching your energy provider can increase disposable income by upwards of £30 per month."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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