E.ON cuts electricity prices

E.ON is to cut its electricity prices by nine per cent, the energy provider has announced.

However, the firm's gas prices are to remain unchanged.

E.ON estimates 4.4 million customers will benefit from the price cut – which comes into force from March 31st.

The reduction is the equivalent of £44 of average annual bills.

The average bill for a dual fuel E.ON customer will now drop from £1,297 to £1,253 – £340 or 37 per cent higher than in January 2008, according to analysis by uSwitch.

E.ON is the third major energy provider to cut its prices this year – after British Gas' gas prices will fall by ten per cent from February 19th, and Scottish & Southern Energy (SSE) electricity and gas prices will fall by nine per cent and four per cent from March 30th.

Over 2008 energy prices rose 40 per cent and since 2004 a typical household's energy bills have more than doubled.

Graham Bartlett, managing director of E.ON's retail business, said: "We know our customers are facing difficult times and we are continuing to monitor the market to ensure the prices we offer our customers are as competitive as possible."

Will Marples, energy expert at uSwitch, said: "Energy price cuts are coming in low and slow, averaging out at £66 or five per cent so far.

"There is still a slim glimmer of hope that there will be a second wave of cuts this year, but consumers should certainly not bank on it."

He added energy suppliers are already hinting prices will go back up again next year.

"Households will have to steel themselves for higher energy bills ahead."

Mr Marples added there were two practical ways to cut down energy bills: make sure you are paying the lowest possible price for their energy and learn to use less of it.

"People should move to dual fuel, pay by direct debit and sign up to an online plan to enjoy lower prices straight away – they could cut their energy bill by up to £350 just by switching to a competitive plan."