As you may have heard, we were one of the first energy suppliers to cut their standard gas price in 2016. And unlike others, our 5.1% reduction has already come into effect. But what does that mean to our customers?
Why did you lower gas prices?
What we pay for gas (known as the wholesale price) has gone down, and we wanted to pass the right savings on to you. You may have read that the wholesale price came down to the equivalent of 10% of the average household bill earlier this year. When calculating the reductions we also had to take into account other costs we don’t control that could rise.
When we look at how much we charge our customers, we also need to take account of political and social stability in the regions where gas is produced, long-term supply and demand and the costs of running a business.
Energy companies buy their supplies in advance, sometimes a year or more, which is why there is often a lag in reduced prices for customers. So, the 5.1% cut was the most sensible one to make at the time. We promise to keep reviewing our prices and those outside costs as the market changes.
Here’s what Tony Cocker, the Chief Executive of E.ON UK (the big boss) said about the price cut: “Our decision to make these moves is the right thing to do and reinforces just one of the reasons why customers have voted us the UK’s number one large energy supplier for customer satisfaction.”
When was the new price available to me?
We announced the price cut on 20 January and the reductions took effect on 1 February. That means that we charged you the cheaper rate for any energy you used from 1 February onwards.
How much did I save?
Our revised gas prices will save you the equivalent of three weeks’ gas use over the course of the year. That’s £32 off the average annual gas bill in the UK. We all know that old saying that if you take care of the pennies, the pounds will look after themselves. Now, that may or may not be true, but who wouldn’t like an extra 3,200 pennies for their piggy bank?
What does this mean for my bill?
The good news is that if you’re on a variable Dual Fuel tariff, the difference in price was applied to your account automatically. We will estimate this for your next bill, unless we received a meter reading from you. So the easiest way to pay only for the energy you’ve used is to give us a meter reading as soon as you can.
If you’re on a fixed price tariff, you can see if there’s a cheaper tariff through our Best Deal for You. It should take no more than a few minutes to switch - and you won’t have to pay an exit fee either. If you're not yet an E.ON customer, you can still get a quote from us to benefit from the price change.
Lowering prices was the right thing to do, and we want to continue to do right by our customers by passing on savings to you.