Energy Bills Cut By Last Of The Big Six Suppliers

Fri, 20 Jan 2012
 
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Scottish Power and E.On have become the last of the ‘Big Six’ energy companies to announce cuts in their gas and electricity tariffs .

Earlier this week, Scottish Power said gas bills would fall by an average of 5 per cent for around 1.4 million domestic gas customers from next month, saving £36 a year for both dual-fuel and gas-only monthly direct debit customers.

The announcement came hours after rival E.On announced a similar 6 per cent drop in electricity costs. The move will take effect from February 27 and will cut £31 off the average annual electricity bill.

All of the UK’s major energy suppliers have now made, or are set to make, cuts to their tariffs following recent falls in wholesale prices. However, none has yet cut both gas and electricity prices .

The recently announced reductions are expected to shave around £34 (2.6 per cent) off the average household energy bill .

However, consumer watchdog groups and industry experts say the price cuts are insignificant compared the £224, or 21 per cent, rise in prices that consumers have seen since the end of 2010.

According to new figures from comparison site uSwitch.com, household energy has become unaffordable for one in three UK consumers, with the cost of heating now a bigger financial concern than the rising cost of food and mortgage payments.