E.ON cuts electricity prices by 6%

The company is the fifth of the Big Six to announce a price reduction in the past week.

E.ON has become the fifth of the Big Six energy companies to drop prices in the past week, with a 6% cut in its standard electricity prices.

It says this will benefit 75% of its customers who are on either an electricity-only or dual fuel tariff. It estimates the average electricity customer will save £31 a year as a result of the cut. The cut takes effect from 27 February.

Customers who are on the following tariffs will benefit from the price cut:

Standard and derivatives (all payment methods, Pre-Payment Meter inclusive), including: Unrestricted, E7, E10, E18, Heatwise, Comfort Extra, Electrical Heating, Southern Heat, Standard Reward
Age UK variable products (Age UK Standard, Age UK High User and Age UK Standard Reward)
Energy online
Go Green
Selected Capped products
EnergyFit
Home Energy Pack Reward

E.ON is also offering customers on fixed tariffs the option to change to a variable one to benefit from the price change.

Last year, E.ON increased electricity prices by 9% in February and by a further 11% in September.

It says the “recent slight fall” in the cost of wholesale electricity has allowed it to make the cut.

The company is also conducting a ‘Reset Review’ to “deliver the changes needed to get back the trust of our customers”.

E.ON came joint ninth in a recent Which? satisfaction survey of energy customers.

British Gas is the only other supplier to have cut its electricity prices during this current round of reductions. Its cut reduced the average customer's bill by £24 a year.

Here's a full list of the Big Six's recent reductions:

Supplier	Cut in gas prices	Cut in electricity prices
EDF Energy	5%	-
SSE	4.5%	-
British Gas	-	5%
Npower	5%	-
E.ON	-	6%

Scottish Power is the only remaining supplier to have not announced a price cut, but this will inevitably follow at some point in the very near future, possibly even today.

Compare energy tariffs with lovemoney.com

More: The best and worst energy suppliers | Energy customers ‘missing out on millions in compensation’

For the latest news and comment on the stories that affect your money, follow us on Twitter