With wholesale energy prices currently in a lull, E.On has become the first of the big six commercial energy companies (the others being British Gas, SSE, ScottishPower, EDF Energy and npower) to announce it will pass these lower costs on to their customers.
News from the German-owned energy supplier said that the price cut would ‘save about 2 million households £24 on a typical annual bill’; the equivalent of approximately a fortnight’s gas usage.
The change in pricing isn’t entirely altruistic from E.On, however, as growing pressure from the UK government has been questioning why – if wholesale commercial electricity and gas are so low – are energy bills remaining at record-high prices.
Last week the Treasury announced that it would be launching and investigation into why prices remain fixed despite these fluctuations in supply cost, and energy minister Matt Hancock announced he has requested the presence of all six of the companies at a meeting to explain their prices.
E.On Becomes First ‘Big Six’ Supplier to Cut Prices in 2015