E.ON to reduce standard gas price by 5.1% – the equivalent of 3 weeks’ gas use – and launches cheapest fixed tariff on the market of any supplier

By ScottSomerville

All four E.ON dual fuel
tariffs will be reduced in price as a result of changes announced (1)

Key
points
:

  • 5.1% average reduction(2) to standard residential gas price
    from 1 February 2016;
  • Equivalent to 3 weeks’ gas use(3) or £32 off an average
    annual gas bill(2);
  • Britain’s cheapest energy tariff available today – new one year fixed
    dual fuel product with average annual price of £783(4);
  • Britain’s cheapest two year fixed tariff available today – an Age UK
    tariff exclusive to people 60 or over(5);
  • Reduction comes despite an increase in some costs associated with
    non-energy parts of the bill and ongoing uncertainty due to the
    Competition and Markets Authority investigation;
  • The £6m E.ON Energy Fund offers further support to vulnerable people
    with grants worth over £1.5m provided to more than 2,500 households in the
    nine months since it was set up.

E.ON has today (WED) announced it will reduce its
standard gas price by an average of 5.1%(2) from 1 February 2016.
This is equivalent to 3 weeks’ gas use(2) or £32 off an annual gas
bill(1). E.ON has also launched Britain’s cheapest energy tariff(4),
a one year dual fuel fixed product that is available from today and is open to
new and existing customers alike. E.ON’s 4.5m residential customers can switch
between E.ON products without paying an exit fee(6).

E.ON has also today launched new versions of its other
two dual fuel tariffs which are priced lower than those on sale yesterday. The
two year fixed E.ON tariff is available for all customers, whilst the Age UK two
year fixed tariff offers a product tailored for people aged 60 or over and
provides peace of mind for customers who want to be protected from potential
price increases for two years. These two tariffs have no exit fees(5).

Commenting on the details announced Tony Cocker, Chief
Executive of E.ON UK, said: “Today’s action once again makes our standard
tariff the cheapest variable offering of any of the larger suppliers and our
new one year fixed tariff is simply the cheapest product of its type on the
market today(4). Our decision to make these moves is the right thing
to do and reinforces just one of the reasons why customers have voted us the
UK’s number one large energy supplier for customer satisfaction for the last
four years running in uSwitch.com’s annual awards(7).
Ultimately, we will always try to do our very best for our customers and today’s
action is a real demonstration of that fact.”

Explaining the detail behind the level of the price cut
announced today, Tony Cocker continued: “The underlying position is that
whilst the price we pay for our customers’ energy has fallen, we also have to
take account of managing the various other risks in the market which can change,
and the fact that many of the other costs that we don’t control but do have to bear
have increased or may increase. Once you’ve built in various uncertainties and
other factors, whilst the wholesale market movements may translate across to a
dual fuel domestic bill for a drop in prices of under 10%, the inclusion of
those other factors translates the percentage to the standard gas cut announced
today. We will continue to keep all
these factors under review.”

Other key customer
points include:

·
Smart Pay As You Go: E.ON became the first of the
larger six suppliers to level the playing field for prepayment meter customers
by offering them the same prices as Direct Debit customers through its Smart
Pay As You Go pilot. Smart Pay As You Go, which will be rolled out more widely
this year, is a new way of paying that brings an end to estimated bills and
allows customers to track their energy spending and top up their account
whenever and wherever they are – by going online, using the app or over the
phone.

·
Price
Alert:
Once customers have opted in E.ON automatically tells
customers of new equivalent fixed deals
if / when they are offered

·
Discounts –
simple and fair:
These are provided as a clear monetary value, not a
percentage discount. E.ON customers can receive:

· Up to £70 a
year for paying by fixed monthly Direct Debit (£35 per fuel) or by Smart Pay As
You Go;

· £20 a year
for having a dual fuel account;

· Up to £10 a
year for paperless billing (£5 per fuel).

·
Rewards: Rewards are available for all residential customers who
have an electricity or dual fuel account and opt in to E.ON Reward Points.
Customers will be awarded up to 1,500 E.ON Reward Points a year, which are
accrued on a daily basis and awarded monthly. These points can be exchanged
either for Tesco Clubcard points or Bonusbonds Multistore vouchers. Almost two
million customers have chosen to receive E.ON Reward Points since the scheme
launched in December 2013 and E.ON has given away more than £10 million worth
of benefits to these customers so far. E.ON Rewards has recently been announced
as the energy industry’s best rewards scheme by uSwitch.com in its 2015 Energy
Customer Satisfaction Report, an independent report based on research with
5,300 consumers.

·
E.ON Energy Fund: The £6 million E.ON
Energy Fund has been set up to help people struggling with their energy bills.
Eligible pensioners, families, people with disabilities or sickness, and those
on low incomes can apply for help with the payment of energy debt and the
provision or replacement of white goods and gas boilers. The E.ON Energy Fund
is open to all energy customers, regardless of their supplier, and E.ON has so
far helped more than 2,500 households with some £1.5 million worth of support
since the Fund launched in April 2015.

To find out how
E.ON can help customers use and pay for no more energy than they need please
visit:
eonenergy.com

Ends

For
further media information please contact:

·
Scott Somerville (07889771804)

·
Victoria Blake (02476181304)

·
Roxanne Postle (02476195785)

·
Jag Bickham (02476181308)

·
Andrew Barrow (02476183677)

·
Jane Branscombe (02476183681)

·
Naomi Troy (02476180523)

NOTES TO EDITORS

Standing
Charge

Do you charge a
standing charge?
Yes. We apply a standing charge to
our tariffs; this is: £95 (around 25p a day) for electricity; £115 (around 30p
a day) for gas. For customers who pay by fixed monthly Direct Debit we offer a
reduction on the standing charge for each fuel of £35 per year.

Discounts

Do you offer a
discount for customers taking both fuels?

Yes. We offer an annual discount of £20 to all customers who take both fuels.
(This is accrued daily).

Do you offer a
discount for customers paying by Direct Debit?

Yes. We offer a reduced standing charge to customers paying by fixed monthly
Direct Debit. This is £35 per fuel per year.

Do you offer a
discount for customers who manage their account / bills online?
We offer a discount to customers who choose to receive paperless bills of
£5 per fuel per year.

Do customers
receive these discounts automatically?

Yes. These discounts are applied automatically.

How much can
customers save?
If customers choose to pay by fixed
monthly Direct Debit with paperless billing and take both fuels from E.ON, they
can save a total of £100. £20 a year for taking both fuels; £10 a year
for taking paperless billing (£5 per fuel); £70 a year for paying by fixed
monthly Direct Debit (£35 per fuel). Total = £100.

Rewards

What rewards do you
offer to your customers?
Customers have the
capacity to earn E.ON Reward Points, which can be exchanged for vouchers for
the high street, via Bonusbond Multistore vouchers, or Tesco Clubcard points.
Customers must have an electricity or dual fuel tariff and opt in online or by
phone to activate / receive these rewards.

Price
Alert

Do you
automatically tell customers on your fixed deals of new cheaper deals when they
are offered?
Customers on fixed price tariffs who have signed up to
our Price Alert service will automatically be told of new deals if / when they
are offered. Customers registered online, on fixed tariffs and who opt in will
automatically be told (via email) of new fixed deals when they are introduced.

Point
of Clarification

  • 1) When
    compared with the previous version of these tariffs. Existing fixed tariff
    customers will need to change to the new version of tariffs launched on 20th
    January 2016 to access the lower prices. Variable tariff customers will
    have the standard gas price reduction applied to their account
    automatically on the 1 February 2016.
  • 2) Based on Ofgem average annual consumption of 12,500 kWh gas, across
    all payment methods and regions.
  • 3) Gas price reduction applied as a 6.14% single unit rate reduction
    meaning that that excluding standing charges is equivalent to 22 days of
    daily use if remaining in the same home for 12 consecutive months.
  • 4) E.ON Energy Fixed 1 Year v18 is currently cheaper than any unbundled
    (e.g. not contingent on a boiler purchase) tariff offered by any of
    Britain’s energy suppliers. The offer is applicable to dual fuel and
    electricity only customers across all regions on standard and Economy 7
    meters. The comparison against other suppliers is based on a national
    average using Ofgem typical annual consumption of 3,100 kWh for single
    rate electricity meters, 1,935 kwh day units and 2,365 kwh night units for
    Economy 7 meters and 12,500 kWh for gas. The offer is not available to
    prepayment, restricted hour tariff meters, gas only customers or
    non-residential customers. Average annual bill of £783 based on payment by
    fixed monthly Direct Debit with paperless billing (£793 without paperless
    bill discount). Correct as at 20 January 2016.
  • 5) Age UK Fixed 2 Year v6 priced at £939 a year and E.ON Energy Fixed
    2 year v8 priced at £1,068 a year based on a national average using Ofgem
    typical annual consumption of 3,100 kWh for single rate electricity
    meters, 1,935 kwh day units and 2,365 kwh night units for Economy 7 meters
    and 12,500 kWh for gas with payment by fixed monthly Direct Debit with
    paperless billing. The offer is not available to prepayment, restricted
    hour tariff meters, gas only customers or non-residential customers.
    Average annual bill of £783 based on payment by fixed monthly Direct Debit
    with paperless billing (£793 without paperless bill discount). Correct as
    at 20 January 2016.
  • 6) Tariff choices based upon meter suitability.
  • 7) E.ON was voted top of the larger six energy suppliers for the
    fourth year running in the 2015 Energy Customer Satisfaction Report from
    uSwitch.com in December 2015
    http://www.uswitch.com/media-centre/2015/12/new-figures-reveal-customers-more-satisfied-with-energy-suppliers/


The information
(including any forecasts or projections) contained in this press release (the
“Information”) reflects the views and opinions of E.ON on the date of
this press release. The Information is
intended as a guide only and nothing contained within this press release is to
be taken, or relied upon, as advice.
E.ON makes no warranties,
representations or undertakings about any of the Information (including,
without limitation, any as to its quality, accuracy, completeness or fitness
for any particular purpose) and
E.ON
accepts no liability whatsoever for any action or omission taken by you in
relation to the Information. Any reliance you place on the Information is
solely at your own risk. This press
release is the property of E.ON and you may not copy, modify, publish, repost
or distribute it. © E.ON 2016

Source:: E.ON to reduce standard gas price by 5.1% – the equivalent of 3 weeks’ gas use – and launches cheapest fixed tariff on the market of any supplier

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