E.ON starts summer price cuts on gas

E.ON has cut its gas prices by 3.3%, or about £25 a year.

Three months after E.ON cut its electricity bills by 9%, the energy supplier has followed suit with a moderate cut to its gas prices, which will benefit around 1.8 million E.ON customers in the UK.

In addition, E.ON is also removing a £1 standing charge for 200,000 customers with gas prepayment meters.

Despite the price cuts, E.ON still has some way to go to make up for the company's 2008 price rises, when E.ON increased its prices by 42%, or a whopping £378.

Indeed, Consumer Focus, the energy watchdog, said last month that energy suppliers were overcharging customers by almost £1.7 billion since the start of the year. Consumer Focus calculated that households were being overcharged by £74 each, due to gas and electricity suppliers not passing on a fall in wholesale prices.

In May, E.ON reported an 18% rise in quarterly profits. E.ON's German business made a net profit of €2.5 billion (£2.2 billion).

Fred Rojahn, SuperSwitcher's Managing Director commented: "this is welcome news for E.ON customers, and we would expect other suppliers to follow through with price cuts during the summer. However, E.ON and the other energy companies clearly have some way to go to make up for past price rises, so customers are advised to check for better deals."

The easiest way of checking regularly that you are not missing out on a cheaper offer is to use SuperSwitcher's free account management tool: once set up, you can compare energy tariffs with a single click. Setting up an account only takes a few seconds. To get started, just click on "Register" in the navigation menu at the top right hand corner of the screen.

Alternatively, just compare gas and electricity tariffs now!