22nd January 2016
E.On has put pressure on the Big Six energy providers by cutting its standard gas price to lows not seen for five years.
It has become the first of the energy suppliers to announce a price cut this winter and will reduce its standard gas price by 5.1% from 1 February. The cost per year is £769 for an average household.
E.On said this amounts to a saving of £32 off an average annual gas bill and those on standard tariffs can save more by switching to the new deal.
It has also launched a new one-year dual fuel fixed product, which is says is the cheapest on the market. The Energy Fixed One-Year v18 will cost an average household £738 a year.
Moneysupermarket energy expert Stephen Murray said: ‘For the second time this week energy giant E.On really puts pressure on the rest of the Big Six by releasing a market leading fixed tariff to back up its cut in standard gas prices.
‘It has made a very clear move in response to falling wholesale prices and consumer outcry to cut household costs, and this will hopefully force the other Big Six players to cut standard prices for both gas and electricity.’
Murray added that the £769 price of the deal is ‘the cheapest standard energy tariff on record since March 2011 – almost five years’.
‘These low prices are what consumers deserve in view of the sharp falls seen in wholesale gas prices over the last year, and should be supplemented by cutting the prices of the standard tariffs also. However customers on those standard tariffs should be taking advantage of the great fixed deals in the market by switching now,’ he said.
‘For anyone worried about how much they spend heating and lighting their home during winter, it should be comforting to know that there are actually savings of over £300 out there for anyone currently on a standard tariff. So while we await the other big suppliers to make their move to cut costs, consumers can rest assured the best deals can be won by switching, not staying on standard tariffs.’