moneysupermarket.com: E.ON cutting electricity prices by 9%

Commenting on E.ON cutting electricity prices by nine per cent, Scott Byrom, utilities manager at moneysupermarket.com said: "Strike three in the energy price war comes from E.ON - the first non-British energy provider of the ‘Big Six' to drop prices this year. This move marks the first reaction to MPs criticism yesterday of ‘foreign-owned' energy providers who are yet to drop their retail prices. Effective 31st March 2009, its 4.1 million customers will benefit from a nine per cent price reduction to the cost of it's electricity - meaning the average bill for standard customers now stands at £1,253 - £44 cheaper per annum, but this is still more expensive than offerings from British Gas and Scottish & Southern following their price cuts.

"Despite this move from E.ON the Websaver 1 tariff from British Gas remains the cheapest on the market at £1,058.

"It is becoming increasingly clear the levels of price reduction Brits want to see will not take place in this round of price cuts. For anyone who has never swapped provider and is languishing on a standard tariff, there are savings to be made now by shopping around for the best tariff to suit you. Swapping your payment method will reduce your bills too - paying by monthly direct debit will offer more competitive rates than settling bills by quarterly cash or cheque.

"Although the decreases seen so far are a step in the right direction, energy users have already paid through the nose for their winter energy consumption. Many consumers will hope for further price cuts on the horizon, and with three more energy giants yet to put their cards on the table, we can expect more providers to respond with similar price cuts. It is crucial however to be aware of how the providers are altering their prices - all three price drops so far have been made in varying degrees; while this cut is just to electricity, British Gas cut gas only and Scottish & Southern reduced prices on both. My advice to consumers is to arm themselves with information on their current provider, tariff and consumption, in order to make the right choice when shopping around for the best deal. There are definitely savings to be had out there and consumers should be proactive in looking to reduce the cost of their bills."