Powergen in strong position to cut prices again

Tim Wolfenden, Senior Energy Product Manager at uSwitch.com, comments on E.ON’s quarterly trading statement today which reveals that Powergen is in a strong position to cut prices again:

“Reading between the lines of today’s trading statement there is clear cut evidence that Powergen is in a strong position to cut its prices again. It highlights the significant turnaround in wholesale prices, which has contributed to a ten-fold increase in earnings (EBIT) from 43 million euros in the first quarter of 2006 to 436 million euros in the first quarter of 2007.

“There is absolutely no doubt that energy suppliers are benefiting from significantly lower wholesale prices. This adds resonance to calls for suppliers to pass the benefits on to consumers in lower prices. Powergen increased its prices by £353 or 54% since January 2005 and has only cut its prices by £92 or 9% so far this year. We now know that there is scope for far more and urge Powergen, along with all suppliers, to balance the needs of customers alongside those of shareholders.”