E.ON and Scottish Power cut prices - 17/01/2012

Scottish Power and E.ON have both announced cuts in the cost of their domestic energy deals, meaning all of the Big Six providers have now dropped their gas or electricity prices.

Yesterday, (January 16th), E.ON announced it is to reduce its electricity tariffs by six per cent, effective from February 27th, which should save the average customer £31 a year.

This was shortly followed by Scottish Power confirming it will reduce its gas tariffs by five per cent as of the same date.

Director of energyhelpline.com Mark Todd stated that while the recent round of cuts has been welcome, providers can still do more to offer customers a good deal.

He said: "We are still hoping that this first price drop round is just a warm-up and is followed by a second round before winter is out."

Mr Todd also noted research by the independent price comparison site revealed up to 500,000 people are set to switch energy provider this month in search of a cheaper tariff.

The spokesman observed that despite the recent round of cuts, those who changed to a fixed-rate tariff in 2011 still made the right option.

This is because, while prices for the average dual fuel bill have dropped by two to three per cent so far, increases over the past 18 months have added 21 per cent to a typical household's energy expenses.

Mr Todd said: "Yes, those on fixed tariffs will miss out on the recent cuts but they are still massively quids in because these deals are still much, much cheaper than the standard ones offered by the Big Six providers even after the price cut."

Make sure you're not paying too much for your energy - compare gas and electricity prices now at energyhelpline.com or call 0800 074 0745