E.ON to cut standard gas prices, but will other suppliers follow suit?

• E.ON reduces standard gas prices by 5.1%, cutting £32 from the average gas bill from 1 February

• Today’s cut follows a 3.5% reduction to E.ON standard gas tariffs in January 2015

• Uswitch renews calls for standard dual fuel plan reductions from the big six of at least 10% – around £120 – to reflect low wholesale energy prices

• E.ON has today also launched the market’s cheapest fixed term deal in over four years at £783 a year – £311 less than the average big six standard tariff.

E.ON has today announced a 5.1% cut to standard gas prices and launched the market’s cheapest fixed deal. Commenting on the news, Uswitch.com Director of Consumer Policy, Ann Robinson, says: “Consumers have patiently waited for over six months to see another big six price cut so this move, while welcome, is long overdue. Given the fact that wholesale prices are at a five year low, E.ON customers may well feel underwhelmed by the size of this cut.

“Wholesale electricity costs fell 23% last year, so why have we not seen a single reduction to big six standard electricity tariffs? This is yet further evidence that the energy market simply is not working for most UK households.

“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.

“Now is the time for the other major suppliers to step up to the plate and offer decent, double-digit reductions to help hard-pressed consumers – many of whom are rationing their heating this winter just to make ends meet.

“The fact that standard tariff customers have waited so long to see bill reductions underlines why the Competition and Markets Authority is right to focus its ongoing investigation on ways to increase competition.

“In the meantime, big six standard tariff customers should switch to E.ON’s new fixed deal – the market’s cheapest plan in over four years – to cut bills by a staggering £311 a year.”

Big six suppliers’ standard plan price changes 2015/2016

| Supplier | Change | Effective | | E.ON | ·         Gas: down 3.5%

·         Gas: down 5.1%

| ·         13th January 2015

·         1st February 2016

| | EDF | ·         Gas: down 1.3% | ·         11th February 2015 | | British Gas | ·         Gas: down 5%

·         Gas: down 5%

| ·         27th February 2015

·         27th August 2015

| | ScottishPower | ·         Gas: down 4.8% | ·         20th February 2015 | | npower | ·         Gas: down 5.1% | ·         16th February 2015 | | SSE | ·         Gas: down 4.1% | ·         30th April 2015 |

Source: Uswitch.com. Correct as of 20th January, 2016