Another of the 'Big Six' energy giants has followed British Gas and Scottish & Southern Energy by cutting its bills for gas customers, this time by six per cent.
But Gareth Kloet, head of energy at Confused.com, says that this is too little, too late for consumers, who should use the recent cuts as a good juncture to compare the market in search of the best deal and switch energy provider.
Mr Kloet also commented that it is disappointing that the price cut will not come into affect until the end of the month, rather than implementing it immediately as cold temperatures continue to chill the UK and keep thermostats turned up.
He adds that although he welcomes the latest price cut – which will make E.ON the most competitive gas provider – cutting the price of gas and not electricity is only tackling half of the problem behind expensive energy bills.
With standard dual fuel tariffs falling an average 4.9 per cent in the last 12 months, and the most competitive deals falling 21 per cent, consumers could save a lot more by shopping around, he said, while the benefits of the E.ON price cut will amount to an average saving of £42 a year.
This meagre price cut "illustrates that there is only a small reward for loyalty, as energy suppliers continue to reserve their best deals for customers who are prepared to go online and shop around," he accused energy providers.
Also commenting on the price cut from E.ON, Scott Byrom, utilities manager at moneysupermarket.com, said "It is a step in the right direction for bill payers but it still only means a drop of £3.50 a month on gas bill," following Scottish & Southern Energy's £2.50 a month reduction last week.
But, Mr Byrom said, "The good news is that 'online pay monthly' tariffs are still almost £300 cheaper per year than the standard quarterly tariffs. Effectively, this is an immediate 25 per cent price cut to your annual bills," he explained. "While for many customers switching to a new provider is the best option, at the very least customers should contact their current provider and ask to move to its cheapest tariff."
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