E.On to Cut Gas Prices

British energy firm, E.On have recently announced that they will be cutting gas prices for UK customers by 3.3% which equates to an average per household saving of around £25 per year.  This news comes after the firm also dropped electricity prices by a 9% and eliminating the service charge for pre-paid electricity customers.

As a result of these changes over 1.5 million customers look set to benefit from the savings they will see in their gas bills.  This is after the firm reported an 18% rise in quarterly profits during the month of May.

E.On is Europe’s largest energy supplier, and they are continuing to make profits during the economic crisis.  With a net profit over 2.5bn Euros in the last financial quarter, the company is passing some savings on to the customer.

The firm reported that recent openings of power stations in Italy and Spain are responsible for helping boost their profits during the recession.  As a result, the firm is now able to compete at a much more competitive level than they were previously.

E.On has been praised for is abolishing additional charges to customers using prepayment meters.  The changes E.On is making are not huge, but they are putting money back into the customers pocket.  It is giving people renewed confidence in the energy industry, but whether or not these actions are sufficient remains to be seen.

E.On has seen energy prices fluctuate rapidly since two years ago, and only now has the oil price bubble burst.  Since that time prices have fell through the floor, yet the firm still admitted that its wholesale costs for electricity are still 60% higher than previously.

The average customer look set to benefit by around £2 per month because of these changes, and whilst they are small they are significant.

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