E.ON yesterday became the third of the UK's big six energy companies to cut its prices when it announced a nine per cent reduction on its electricity prices.British Gas
, the UK's biggest energy supplier has already pledged to cut gas bills by 10 per cent while Scottish and Southern Energy says it will cut electricity bills by 9 per cent and gas prices by 4 per cent.E.ON
says its decision to cut domestic electricity prices from the end of next month will benefit 4.1million customers, but Gareth Kloet, head of utilities at Confused.com has criticized E.ON for only cutting electricity prices and not gas, and not bringing in the change until the end of March.
"While any price cut is a welcome move for the millions of customers who are already with E.ON, the announced price reductions of nine per cent for electricity but nothing for gas, is a huge disappointment," he said.
"Echoing the move made by Scottish and Southern last week, E.ON has made its announcement two months before the changes will become effective.
"With the cold weather continuing, it's not what customers want to hear. Coupled with the fact it is not decreasing its gas prices, this announcement leaves a lot to be desired."
However, E.ON says that despite the fact it is not cutting gas prices, its gas bills are still cheaper, on average, than British Gas, even after its rival cut prices.
"We'll be reducing our electricity prices for millions of customers, while also having maintained one of the cheapest gas prices throughout the coldest winter in over a decade," said Graham Bartlett, Managing Director of E.ON's Retail business.
However, overall, British Gas still has the cheapest deals according to research by moneysupermarket.com
"Despite this move from E.ON the Websaver 1 tariff from British Gas remains the cheapest on the market at £1,058," said the comparison site's utilities manager, Scott Byrom.
Customers are advised that even if their energy provider is cutting prices they still need to be shopping around for the best deal, showing gas and electricity providers
that these current cuts are simply not enough to make up for all the hikes of last year.
"It is becoming increasingly clear the levels of price reduction Brits want to see will not take place in this round of price cuts. For anyone who has never swapped provider and is languishing on a standard tariff, there are savings to be made now by shopping around for the best tariff to suit you," said Mr Byrom.
While Mr Kloet says it's time for customers "to take matters into their own hands and vote with their feet."
"The advice to E.ON customers is simple," he said. "Don't wait for the prices to change. Now that you know what's going to happen with your energy prices in the spring, take a look at what the competition is already offering in order to ensure that you are on the best tariff."
Are you paying too much for your energy? Compare gas and electricity quotes
and switch energy provider
© Fair Investment