12 February 2009 16:04
E.ON announces electricity price cut of 9% (1)
- 4.1 million customers to benefit from price reduction
- Gas prices, on average, to remain cheaper than British Gas' post-decrease prices (2)
- Older vulnerable customers further helped by launch of ‘WarmAssist' for prepayment meter customers
E.ON has today (THURSDAY) announced it will decrease electricity prices for the majority of its residential customers, effective from 31 March 2009.
Graham Bartlett, Managing Director of E.ON's Retail business, said: "We are delighted to announce today that we'll be reducing our electricity prices for millions of customers, while also having maintained one of the cheapest gas prices throughout the coldest winter in over a decade.
"We know our customers are facing difficult times and we are continuing to monitor the market to ensure the prices we offer our customers are as competitive as possible."
E.ON's gas price remains cheaper than British Gas' post-decrease prices
Despite the fact that E.ON has not announced a gas price decrease, on average, its gas prices remain cheaper than British Gas' post-decrease prices (2).
Protecting vulnerable customers
E.ON's commitment to protecting its most vulnerable customers has seen the company double its social investment to £13.2 million in the last year and Ofgem has recently revealed that E.ON spent more per customer account on its social programme than any other major energy supplier (3) in 2007/08.
E.ON has also today announced the expansion of its ‘E.ON WarmAssist (4) social product, to provide additional help to its vulnerable older customers with prepayment meters.
The move follows the launch of E.ON WarmAssist for customers with standard meters in December last year and allows E.ON's existing prepayment meter customers who are in fuel poverty to benefit from its cheapest prepayment product.
Customers aged 60 or above who are in receipt of Pension Credit will receive the equivalent benefit to standard WarmAssist customers - 15% off E.ON's standard electricity and gas prices. To provide help this winter, this includes an immediate rebate of up to £70 (5) for existing prepayment meter customers who sign up to WarmAssist before 31 March 2009.
Investing in the UK energy infrastructure
E.ON is investing billions of pounds in schemes designed to keep the lights on, reduce carbon emissions and to keep bills as affordable as possible. As part of that programme, E.ON is investing over £200 million in a gas storage scheme in Cheshire which will help E.ON smooth out some of the volatility in wholesale gas prices. It is also currently building the £500m Isle of Grain gas-fired CHP plant in Kent and the £325m Robin Rigg offshore wind farm in the Solway Firth.
Ends
Notes to editors:
1. Inclusive of VAT and based on an average across paying promptly by quarterly cash or cheque and fixed monthly Direct Debit payment methods, nationally averaged, at 3,300 kWh for electricity on an unrestricted meter. Includes a £14 annual discount in the Eastern, East Midlands and Norweb regions for customers not connected to mains gas;
2. E.ON is cheaper than British Gas on standard prices, based on an average across all regions at an average consumption of 20,500 kWh per annum, for customers paying monthly by Direct Debit. Bills may vary across products, regions and consumptions. Some customers may pay more;
3. Source: Ofgem's ‘Monitoring Suppliers' Social Programmes' report Dec 2008;
4. To find out more about WarmAssist customers can call 0800 404 6287. WarmAssist is available for existing customers who are aged 60 or over, in receipt of Pension Credit, with no more than two occupants in the property. As a guide, single occupancy energy payments should be at least £60 a month and for double occupancy they should be at least £80 a month. This enables E.ON to assist those vulnerable customers in fuel poverty. The customer will receive the rebate within 14 days of switching to the product;
5. The immediate winter rebate for prepayment meter customers is designed to cover the period from 1 January to 31 March 2009 and is £70 for customers with both fuels on E.ON WarmAssist with prepayment meters.
E.ON is one of the UK's leading power and gas companies - generating and distributing electricity, and retailing power and gas - and is part of the E.ON group, the world's largest investor-owned power and gas company;
E.ON has around 5.5 million customers in the UK.
For further information please contact:
Jag Kahlon 02476 181 308
Joanne Smalley 02476 180 173
Victoria Blake 02476 181 304
Essi Linderborg 02476 180 092
Louise Nottage 02476 181942