E.ON urged to cut prices as UK earnings soar by 30%

E.ON has reported an 30% increase in earnings (EBITDA) in the UK for the first half of this year. Earnings for the first half of 2011 were Euro 228 million (£198 million) but were Euro 297 million (£245 million) for the first six months of 2012. The supplier says that the Euro 69 million increase was ‘primarily because of improved retail margins'.

Last month Britain's largest supplier, British Gas, announced a 23% increase in its year-on-year H1 residential profits amidst calls for it to cut its prices for customers ahead of the coming winter.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This is further indication that suppliers are benefitting from lower wholesale prices and improved margins. E.ON has frozen its prices for the winter, but I would now urge it to go one step further and to cut its prices ahead of winter so that customers can feel some of the benefit of the lower wholesale costs too. With over eight in ten households having cut down or rationed their energy use last winter because of cost, any reduction would be welcomed.

"All the big six suppliers trimmed their prices earlier this year, but the recent trading and profitability announcements suggest that they could do more. A second wave of price cuts now will not only help customers to better afford their bills, but would also give concrete proof of the industry's true commitment to rebuilding trust and confidence with consumers.

"But as we inch towards winter, I would also remind consumers that they too can take steps to cut the cost of their energy. There is currently just over £300 difference between the cheapest and most expensive tariffs on the market. This is a substantial saving that can be boosted still further by ensuring that your home is energy efficient too. These two steps offer us all the best protection against the high cost of household energy today."