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EON Reduces Gas Price

Community Veteran
Posts: 18,544
Thanks: 190
Registered: 12-08-2007

EON Reduces Gas Price

EON has announced that they are to reduce the price of gas by 3.5%. This should save the average gas user £24 per annum.
8 REPLIES
Community Veteran
Posts: 16,825
Thanks: 1,115
Fixes: 13
Registered: 06-11-2007

Re: EON Reduces Gas Price

In theory... !  I doubt it will stay reduced for 12 months ! ... but nice of them to concede that the price they pay is being reflected in the price they charge ....
Community Veteran
Posts: 5,336
Thanks: 607
Registered: 23-09-2010

Re: EON Reduces Gas Price

I wonder how long the boardroom deliberation went on for in deciding what is the smallest cut we can get away with.
peter10
Grafter
Posts: 231
Registered: 04-03-2009

Re: EON Reduces Gas Price

Have they reduced the price on all tariffs or just the standard one?  The standard tariff from the energy companies is usually an expensive one.
Community Veteran
Posts: 6,824
Registered: 27-10-2012

Re: EON Reduces Gas Price

http://www.ft.com/cms/s/0/9bbe4aec-9af7-11e4-882d-00144feabdc0.html#axzz3OjrhpD98
Quote
Eon has become the first big energy company in the UK to cut fuel tariffs in response to falling global oil prices, announcing an immediate 3.5 per cent reduction in its standard gas price.
The company also introduced what it claimed was the country’s cheapest energy tariff, a one-year fixed dual-fuel product with an average annual price of £923.
The price cut is the equivalent to two weeks’ gas use, or £24 off an average annual gas bill, Eon said. Some 2m of Eon’s 4.5m domestic customers will automatically benefit from it and others will be eligible to switch to the new tariff.
nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Re: EON Reduces Gas Price

On fixed price, with them, until October so won't benefit us in short term.
Community Veteran
Posts: 2,556
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Fixes: 2
Registered: 27-05-2011

Re: EON Reduces Gas Price

I'm "out of contract" with British Gas and was looking at switching.
All the comparison websites were offering cheaper on fixed price but no cheaper on variable  Huh
So I am hanging fire and will jump when one breaks ranks  Smiley
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Community Veteran
Posts: 18,544
Thanks: 190
Registered: 12-08-2007

Re: EON Reduces Gas Price

Before Christmas I looked at switching and found extraenergy was the best deal available. I didn't sign up at the time.
EON is suggesting that with their price reduction they are now offering the cheapest rate available. I wonder if they are only comparing themselves with the others in the 'Big 6' or with all energy companies.
It's worth waiting I think as other companies will follow with reductions. This will include the smaller ones hopefully.
x47c
Grafter
Posts: 878
Registered: 14-08-2009

Re: EON Reduces Gas Price

It will all depend on how much the energy companies(and airlines) bought forward their contracts for gas/fuel supply.
Milliband saying he would freeze prices last year would have immediately cause the companies to buy forward to and extent to safeguard themselves otherwise they could have been caught by a price freeze being implemented with unknowable input prices.
Of course this price fix facility  comes at a cost to the energy companies as they are transferring risk onto their wholesale supplier so the prices to domestic customers were already higher than they might have been had Milliband not kept his mouth shut.
The serious winners in this price drop will be those companies operating in the background plus their financial backers who took on the risk.  Now that spot prices have dropped they can supply at their high fixed price agreement with the customer while buying at the much lower spot.