E.ON announce price cut
The announcement of E.ON’s 3.5% cut in gas prices on Tuesday drew a wide range of comments from stakeholders.
Energy Secretary Ed Davey MP said that “this will be very welcome news for many bill-payers.” This view was echoed by energy minister Matt Hancock MP who said “energy suppliers must continue to pass on savings from lower gas prices.” Hancock said that “this wouldn't have happened under Labour's ludicrous price freeze policy, where high bills would have been frozen and families wouldn't feel the benefit of falling global gas prices." He also said that he hoped that more large suppliers would follow suit.
Caroline Flint MP, Labour’s Shadow Energy Secretary said that “Ed Miliband was right to challenge the energy companies to cut their prices and pass on the falls in wholesale costs to consumers” but that a cut of 3.5% looked “pretty measly” compared to the how much wholesale prices had fallen. Flint argued that consumers still aren’t seeing the full benefit of falling wholesale prices. She also called on other energy companies to cut their prices too
Industry regulator Ofgem said the price cut is “a small step in the right direction” and that customers would understand companies cutting prices after seeing wholesale prices falling. They said that in a “competitive market we would expect others to follow suit.
Market summary for January:
Gas: Prices continue to fall due to strong supply.
Power: The power market continued to mimic the movements in gas.
Oil: The price of oil continued its decline and fell below $47/bbl.
Carbon: A month of both upwards and downwards pressure saw prices edge up slightly.
For a detailed look at the energy markets for the past month, download our full report today.
New videos on the horizon
We're currently creating a suite of new videos to highlight different aspects of the Corporate business, as well as our relationship with our customers. Here's the first of our short films, which covers E.ON Portfolio Solution. It features one of our customers, BSW Timber, who are based in Fort William, Scotland.
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