The UK energy supplier announced it would drop prices for its dual fuel, standard plan customers by 4.8%, or £33 per year for the average household.
This cut will take effect 20 February (British Gas customers will see the change 27 February and E.ON customers’ cut was effective at the time of the announcement, 13 January).
Competing with the ‘small’ guys
Following in E.ON’s footsteps, ScottishPower also unveiled a competitive fixed tariff at the time of the price cut announcement: the Online Fixed Price Energy February 2016 costs £930 on average, putting it in the top five plans on the market at the time of this writing.
E.ON’s competitive plan is the Energy Fixed 1 Year at £923 per year on average.
E.ON’s plan carries a cancellation fee, while ScottishPower’s does not. However, both plans are bested in price by small suppliers — OVO, First Utility and Extra Energy, respectively.
Cuts ‘fall short'; compare for even bigger savings
Ann Robinson, director of consumer policy at uSwitch, said of the news:
“Whilst it’s great to see another supplier cutting prices, single-digit price reductions fall short of the double-digit fall in wholesale energy prices.
“ScottishPower has also launched a new fixed-term dual fuel deal for £930 a year – over £230 cheaper than its reduced standard plan – so customers should shop around to check that they are on the best tariff.
“All eyes will now be firmly on EDF, npower and SSE to follow the lead of E.ON, British Gas and ScottishPower, and cut their standard prices to help hard-pressed consumers with energy bills this winter.”