E.ON cuts gas prices by 3.5%

E.ON is the first of the Big Six energy suppliers to announce a price cut of 3.5% which is equivalent to £24.38 off an average annual household gas bill. The new one year fixed dual fuel product with average annual price of £923 is the cheapest energy tariff available today. The price reduction will take place with immediate effect and is available to both new and existing E.ON customers. You can can switch between E.ON products without paying any exit fee.

The graphs below illustrate how the introduction of the 3.5% price cut translates in to savings of £24.38 across the board. Please have a look at the tables at the end of the post in order to see an accurate comparison between the old and new E.ON tariffs based on the area you live in and the method of payment. The calculations were done using average annual Ofgem domestic gas and electricity usage.


EON cut gas prices MDD illustration

EON cut gas prices prepayment  illustration

Commenting on the move Tony Cocker, Chief Executive of E.ON UK, said: “Today’s 3.5% cut to our standard gas price and the launch of the UK’s cheapest energy tariff, our one year fixed product,  demonstrate that we fundamentally believe in doing the right thing for our customers. This is further evidenced by the fact we are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices this winter but also that, when our prices had to increase at the start of 2014 to reflect cost increases, for the second year running we announced later than any other major supplier and, on that occasion, at a lower average percentage increase level than any other major supplier.

“While oil prices have slumped, the gas price has remained volatile – some days up, some days down – and many of the other non-energy costs that we don’t control but make up a customer’s bill have increased and are set to increase further. However, today we’ve taken steps so we can make a price cut on our standard gas tariff at the same time as offering customers, existing and new, the chance to sign up to the UK’s lowest priced energy tariff. As we have always said where it is possible we will try to pass savings on to our customers.”

Other key customer points include:

  • E.ON recently became one of the first UK energy companies to offer a faster switching service meaning new customers joining the company will be able to start on their new tariff around 50% more quickly than was previously the case(7).
  • Price Alert: E.ON automatically tells customers on fixed deals of new deals if / when they are offered. Customers registered online, on fixed tariffs and who opt in will automatically be told (via email) of new fixed deals when they are introduced.
  • Discounts – simple and fair. These are provided as a clear monetary value, not a percentage discount. E.ON customers can receive:
        • £20 a year for having a dual fuel account
        • Up to £10 a year for paperless billing (£5 per fuel)
        • Up to £70 a year for paying by fixed monthly Direct Debit (£35 per fuel)
  • Loyalty – rewards are available for all residential customers who have an electricity or dual fuel account and opt in to E.ON Reward Points. Customers will be awarded up to 1,500 E.ON Reward Points a year, which are accrued on a daily basis and awarded monthly. These points can be exchanged either for Tesco Clubcard points or Bonusbonds (vouchers for the high street).

Rest to follow?

The price cut comes as a response to pressure for energy firms to cut prices as wholesale energy costs have fallen. The move by E.ON will now put pressure on the other suppliers among the so-called “big six” to do the same.———————————————————————————————————————————————-

The tables below show an accurate comparison between the old and new E.ON tariffs based on the area you live in and the method of payment. The calculations were done using average annual Ofgem domestic gas and electricity usage.

EON cut gas prices MDD table

E.ON Gas Price Cut for Monthly Direct Debit Payment Type

EON cut gas prices prepayment table

E.ON Gas Price Cut for Prepayment

EON cut gas prices QDD table

E.ON Gas Price Cut for Quarterly Direct Debit Payment Type

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German-owned E.ON supplies gas and electricity to five million homes in the UK.

 

 

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