E.ON cuts electricity prices by 9%; but there's nothing off gas

E.ON has become the third of the 'big six' to announce a cut to its tariffs, following British Gas and Scottish & Southern. The announcement came hot on the heels of the Energy Select Committee the prior day, who demanded answers to why none of the European-owned companies had lowered their bills yet, despite plummeting wholesale prices.

E. ON, based in Germany, is cutting electricity prices by 9 per cent on average, reducing an annual electricity bill paid by quarterly cheque from £489 by an estimated £44. Those that pay by direct debit should see £40 knocked off their annual bill.

Campaigners, however, complained the cut was pretty stingy, came too late to help with steep winter bills, and did not affect gas prices at all.

Gordon Lishman, director general of Age Concern, said: "Cutting prices is the right move, but the current round of modest decreases being announced energy suppliers will still leave many of the poorest pensioners struggling to pay their energy bills."

A customer that takes both gas and electricity from E. ON will still see their annual bills top more than £1,200 – double the price charged back in 2004.

Experts, who previously hoped that utility bills would be falling by at least 15 per cent this year – on the back of plunging wholesale gas and electricity prices – are now warning customers to expect to be disappointed.

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