Energy supplier Eon today announced it is cutting gas tariffs by an average of 3.5% – the equivalent of two weeks gas use – and launching a new dual fuel tariff that it says is the cheapest on the market.
Eon says the cut to its gas prices is equivalent to £24 off the average annual gas bill, or two weeks use, which should benefit its 4.5 million customers.
Its new one-year fixed dual fuel tariff, claimed to be the cheapest on the market, has an average annual price of £923. To find the cheapest tariff for you, use Which? Switch to compare energy prices.
UPDATE 22/01/2015: The results of our annual survey on supplier customer satisfaction have now been revealed. See how Eon got on in our rundown of the best – and worst energy companies.
Which? welcomes energy price drop
Eon is the first UK energy supplier to respond to the falling price of wholesale energy, and pass the drop on to consumers.
The announcement comes after increasing pressure on energy suppliers from the government to pass on wholesale cuts to their customers. Eon’s announcement is likely to put pressure on the other ‘Big Six’ energy suppliers (British Gas, EDF Energy, Npower, SSE and Scottish Power) to follow suit.
Which? executive director, Richard Lloyd, said:
‘This will offer some welcome respite for Eon’s customers. Energy bills are consistently the number one financial concern for consumers, so we hope this starts a competitive chain reaction resulting in lower prices all round.’
Eon first of Big Six to offer cheapest tariff
UPDATE 16/01/2015: This is no longer the cheapest deal. For the latest round up, please click on the link to see the top five cheapest energy deals for January.
Eon announced a new ultra-cheap tariff at the same time as the drop in gas prices, which it says is the cheapest currently available. The new one-year fixed dual fuel tariff – with an average annual price of £923 – is unusual as smaller energy supplies have traditionally offered the best value deals.
The price is based on dual fuel at medium use (3,200 kWh electricity and 13,500 kWh gas per year) averaged across all regions, for a standard credit meter and paying by monthly direct debit.
As of today, the cheapest tariffs are:
1. Eon Energy Fixed 1 Year v14 £923
2. Extra Energy Fresh Fixed Price Jan 2016 v6 £934.48
3. Extra Energy Fresh Fixed Price March 2016 v3 £934.98
4. First Utility iSave Fixed March 2016 (v42) £935.48
5. Co-operative Energy Fair & Square March 2016 £937.76
All prices listed above are averaged across all regions and are for a dual fuel customer (gas and electricity) paying by monthly Direct Debit and choosing paperless billing. The annual costs have been calculated using Ofgem medium consumption figures of 13,500kWh for gas and 3,200kWh for electricity.