27 February 2007 00:00
Powergen announces price decrease for residential customers

• 16% gas, 5% electricity
• Cheaper than British Gas

Powergen, part of E.ON, has today (27 February 2007) announced a price decrease for its six million residential customers.

Customers will see their prices fall by 16% for gas and 5% for electricity, effective from 30 April 2007 (1). These decreases ensure that Powergen remains cheaper than British Gas when these new prices become effective.

The decrease means that the annual cost for an average Powergen dual fuel customer reduces from £1,005 to £913. This is £40 cheaper than British Gas (2), making Powergen cheaper than British Gas for electricity, gas and dual fuel customers.

This announcement follows Powergen’s pledge to remain competitive and the recent launch of three products guaranteed to be cheaper than British Gas until September 2008.

Nick Horler, Managing Director of Powergen, said: “We’ve been very aware of the concerns of our customers over rising energy costs in recent years and, now the wholesale market appears more stable, we’re pleased to be able to reduce our prices.

“It’s very important to us that we offer our customers good value for money and great service and we believe that this move serves to underline that.”

Customers on Powergen’s Age Concern tariff and StayWarm scheme for the over-60s will also see the impact of this decrease.

Unlike some other suppliers there are no tie-ins or cancellation fees and customers do not have to pay a penalty if they wish to switch between Powergen products.

Notes to editors:
• Age Concern - Customers on Powergen’s Age Concern tariff will receive a decrease in line with standard electricity and gas customers. Gas customers also receive a guaranteed cold weather payment of £10. Plus, gas customers aged 60 and over may receive an additional cold weather payment based upon the number of days the temperature is below freezing.
• StayWarm - Over 150,000 standard StayWarm customers, who are already benefiting from a deal fixed for 12 months, will see their bills decrease by 5% on 30 April and may see a further decrease at their next annual price review after 30 April.
• Price Protection 2010 - Offers reassurance against increases until 1 April 2010.
• Existing Capped Price products - Unlike British Gas, Powergen will be reducing prices for these customers where customers are not already benefiting from prices cheaper than standard.
• Guarantee products - Powergen recently announced new products for both single and dual fuel energy that guarantee that customers will continue to pay less than they would with British Gas until September 2008. These prices remain the same as announced. If British Gas reduces its prices further, customers on these products will see their prices fall too.


1 = Price decrease is shown inclusive of VAT and based on an average across quarterly cash/cheque and monthly direct debit payment methods, averaged nationally, at an annual consumption of 20,500 kWh for gas and 3,300 kWh on an unrestricted electricity meter.
2 = Powergen will be cheaper than British Gas based on a comparison of standard gas and electricity tariffs (unrestricted and E7), across either quarterly cash/cheque or monthly direct debit payment methods, including dual fuel, in all regions, based on industry average consumptions of 20,500 kWh for gas and 3,300 kWh for electricity.


For further details please contact:
Nick Sandham 02476 181 307 nick.sandham@powergen.co.uk
Victoria Blake 02476 181 304
victoria.blake@powergen.co.uk
Jamee Majid 02476 183 679
jamee.majid@eon-uk.com